The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-24

When the United States Steel sinking fund
bonds were listed this week in London the action
was followed by manipulative campaign In the
bonds here on which the price advanced SHARPLY
AMI transactions amounted to between 81 600 coo
and S,0Oo,0o0 PAR value per day. Several DAYS
more than half the transa ctions in the bond
markets were in these bonds
There was some good buying on the advance
also some good selling. but manipulation so
impossible 10 judge accurately the character of
the latter At 70 these bonds yield 90 per cent
10 the investor and therefore appear very at
tractive in a Der cent, money market. As a
matter of fact this bond is little or no better
than nrst preferred stock. IL is stipulated
that the company viii! only be obliged 10 pay one
coupon In two years to prevent foreclosure. 1t
trade would decline To a point necessitatlns de-
faultins OF interest ON this bond Along with
TERED stock has improved in value.
II may b. observed that there has been a dis
tlnct change In Wall street sentiments towards
the United states Steel securities since the
is not improbable that dividends on the pre-
ferTed Will be reduced TO a per cent. basis
this current quarter But even on a per cent
basis he stock yields large return TO the in
yestor at q IS price level. and it being cumu-
lative stock there would always be possibility
of the other per cent. being made up.
Some of the most conservative houses in the
street are urging their clients to buy the pre-
ferred stock an investment and along with
il an equal amount of the common stock The
purchase or the preferred stock at So along
with equal amount of common stock at IL
Investment
so long steel preferred continues to pay :
per cent the investment return on the outlay
would he more than 10 per cent. Meanwhile
the financial community is uncertain as 10
whether the IMPROVEMENT that has occurred in
merely rally in bear situation or the begin
ming OF genuine Improvement
Last December il was rumored in Wall street
that the United states steel Corporation would
adopt the old Carnegie policy OF doing business
at any price. This seemed to presage general
decentralization in trade and n weeks sensation.
oficials OF the United States Steel Corporation.
however. vigorously denied that they were doing
/ any such thing Since then. however there has
been a resumption Of activity in all the proper-
! ties or the Steel Trust on a scale that seems
I hardly to be warranted by the slight improve
/ nlent which has taken place in the demand for
, steel products This suggests that the giant
/ trust NAV POSSIBLY be Pursuing in a auiet ,.aN
There are many reasons why the officials
might not care To avOw such n policy but tho
suspicion Is made stronger by the fact that nner
trained IN the Carnegie school now dominant
Standard oil Interests. The standard OIL Com.
| pany's method Of meeting competition, partictI.
larry stringent tir1es. has beer ID bus, mes.
! II any price. and the Standard oil interests IN
United States Steel would naturally favor similal
methods In the MANAGEMENT OF that concern N
! is too carly vet to decide what the Increase al
activity In toe United States steel mills real,
means. but the situation will bear close watch
ing during the next few weeks.
one day this week. a time when the un
easiness Of the financial community over IN,
( situation in the far East was somewhat acute
/ q Wall-strcet news agency printed in quota
ton marks. and double loaded. a statement al
legged TO have becp made by Official OF tn,
standard OH Company. to the effect that Johr