Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-18
BULLS AND BEARS
Special Dispatch to NE star.

Special Dispatch to NE STAR
NEW YORK. May 1S.-Ail that the most
careful inquiry reveals Is that the extant
bearishness on the stocks Of the United
States steel corporation is almost wholly
confined to the speculative community.
Practical steel and iron men seem neither
to have started this epidemic OF pessimism
nor to have been infected by It. and in the
speculative community itself the chief dis
seminators OF the contagion are those In
vestors Of light and leading who form the
so-called professional element. 1t Is a fact
plain to all that decline In pig iron prices
will enable the manufacturers Of steel to
make larger profits II the demand for I'm
ished products continues good. It is a fact
that the United States steel corporation in
order not to have to be too large buyer
Of iron. for months kept more furnaces Of
its own In operation than would ordinarily
be deemed wise or safe.
1t is fact that the iron overstocking
at southern furnaces especially emphasizes
the independent position Of the steel cor
porations. 1t is fact that steel trade
interests generally regard the lull that has
come in iron and in some of the lighter
steel branches a good thing, for the
rea son, If no other, that 1t ayerted the
threatened importation Of iron. Among
iron and steel producers and the import
ant financial interests allied with them 1t
is difficult to find any who will say that
the crop conditions and prospects being
what they are, and with a great gold in
fation going on and easy money in sight
for long term to come, the iron and
steel business has started on what seems
to be a period Of protracted depression.
On the contrary the hest npiniOp iS
for the next four or five years there is to
be tremendous production and consump-
ton of steel and iron in order to meet
the needs of an expanding population.
How any one can expect decline in the
United States steel issues to do anything
else than carry the rest of the market
down Is difficult to discover. If the iron
and steel business the accepted barometer
OF general trade and industrial conditions.
Is going to be so poor that the stocks of
the leading corporation in the field must
sell down 1t would seem preposterous to
suppose that any other stock would not
decline, too. except for special easons OF
an extraordinary nature.
1t has been precisely for this reason that
the so-called bear party has been concen-
| trating its attacks and its rumors on the
steel stocks, and for this reason too the
this week with the heaviness of the steels
rather than with the advance In st. Paul
and the Northern Securities group in gen.
eral. Nevertheless, there is more than one
man in the precincts and purlieus of Wall
street who. while long Of other stocks, is
short Of steel common preferred or both.
He calls this hedge.
Professional Wall street has for some
time been selling dull market. There Is
once more good demand for stocks In the
loan crowd while the private borrowings
from house to house are pretty large. Scale
order buying has appeared on all declines.
and the rooms traders find that they lose
stocks very easily when they start or join
in a selling movement 1t remains to be
seen IL fortune is to favor those who run
rashly counter to the teachings of expert
ence.
There has been small bull interest in
Columbus and Hooking coal and iron for
months. Last fall the stock was tipped
for good rise. but 1t did not get up much.
The financial statement of the company 5
business for the year presented at a stock
holders meeting shows net loss for the
year of $50, JOO.1S. The statement also
shows that marked and decided improve
ment has taken place in the last four
months, and the company. Notwithstanding
a declining market. has shown profits over
and above all fixed charges. The price of
the coal has been, and still is. much lower
than for many years, which has seriously
affected the tonnage.