The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-25
GOSSfP or VAIL STREET.

nultlu " uCtiitlS tlhlONl ~ W lbt
outcome of the coal conference ut Indian
!. apols--this was the explanation OF the dull
ness which pr vailed In the stock market
YESTERDAY. Reports from the centre of in
terest were about as gloomy and depressing
az even the most peSsimistic bear could de-
sire. but most people had ceased to put much
reliance on the rumors, which for the most
part were promulgated for reasons not en-
tirely .disin terested and on this account there
vas a decided disposition TO await definite
and 'nuthent tic newB that the miners and
operators had agreed or failed TO agree on
the principal points in dispute, Every
body seemed 10 expect that q strike would
come. but that II would be only partial. and
the unanimity with which such views were
entertuined suggested that In case something
more favorable occurred there might be a
lively scramble TO cover shorts.
In some quarters there was a rilmor to the
ehoot that an agreement covering the an
thracite fields might be reached on the basis
Of some concession to the demands OF the
miners and an agreement covering a period
Of 1--WE years. Immun ity from recurrence
of such controversies as the present would,
1t was c~ontended, promote the prosperity OF
the business and produce a stability OF trade
conditions such as was never felt before.
But il was questioned whether the operators
could afford to bind themselves by an agree
IltIIl W pay " ' q q lulO " "ubN5 On
high as that which is at present paid and
which could be paid only under circum-
stan ces of prosperity In the industry far
above the average. of past years. IF 1t could
be taken for granted that this prosperity
would continue then a long term agreement
would be a good thing. and as conditions we're
such as~to inspire hope In a bright future
there would be perhaps no reason TO question
the wisdom on the part Of the mine owners
in making an agreement for five years or
even lon ger.
or course an agreement for fve. years
would be equivalent to notice that the present
prices for coal would not be lowered and
might be advanced In years TO come. There
would, he nothing wrong in this. The price
of anthracite is governed by supply and
demand. and as the supply lie strictly limited
its source being confined to a small area
while the demand il increasing rapidly. the
natural conclusion Is that as years go by
the price will tend toward a higher level.
These natural conditions have often sug-
gested the existence of a trust. but as the
closest investigation has failed to disclose the
existence OF such a combination It may be
assumed that nothing OF the kind exists.
The companies have valuable properties.
which worked to full capacity In normal
years about meet the demand at prices
yistding a fair profit on the capital invested.
Why should any of the companies seek to
lower these profits by charging a lower price
for coal than its competitors? II the manage
ment OF any company did 40 II would have
70. account to it's stockholders. who would
undoubtedly express their displeasure in no
uncertain way. Each company then finds
II best to watch It's competitors aud adopt
their prices. so long as these afford a fair
basis of profit.
Conditions governing the price OF coal are
the. same as those governing prices for other
commodities. Take the egg market for
instance. The price of good healthy eggs
early ia the winter was somewhere In the
neighborhood of 30 cents a dozen. Every
grocer had the same price for the same quality.
II It was assumed that there was au egg trust
then'it would have to be admitted when the
price dropped of 25 to 80 per cent. suddenly
that the trust had been busted. Purely a
case. OF wrong premises and a false conclusion.
On the break in prices there was still uni
formity. The law of supply and demand
still governed. with the sellers still watching
one another In making their prices. 1fthey
could curtalf the output they would do so.
but the workers In the egg producing industry
could not be restrained or put on reduced
time. Neither could the output be stored
until better trade conditions arrived. Here
were the reasons why the price of eggs fell
on while the absence Of such reasons In the
coal industry enabled the sellers of anthracite
to hold up their prices just as the sellers OF
eggs would have done had the conditions
been right The aim aud the methods In
both cases were the same, but the natural
conditions were different. In one case. per-
haaps, the forces of nature had conspired 10
create a monopoly,
Rather out Of line with the rumors OF a hitch
In the Algeciras ne regulations was a despatch
from London telling OF a purpose to bring
-. q D--.ion 1non nf Il IN mn nm n m A nFI IN
contingent on an agreement on the Moroccan
matter which according to that source Of
information, was' expected on Monday.
Judge Gary's remarks, about the steel
trade forced themselves upon the attention
of the Street before the session closed and
produced a better sentiment on the United
States Steel issues, which developed siren 9Th
in the last half hour, At first there was a
disposition to argue that as a suspension OF
operations in the soft coal mines might seri-
ously hamper some OF the corporations
plants and involve the payment OF a higher
price for such coal as could be secured, 1t
might be a part of wisdom to await definite
news as to the outcome OF the conference at
indianapolis before taking any definite stand
on the Steel stoclts. But az the day wore
on and the Significance OF the remarks OF the
highest official of the company became better
understood. the stocks took on a degree or
strength which in contrast 10 lheH FORMER
hea viness placed them among the most prom
inent features Of the market.
II looked as IL on the break earlier In the
week New York Central had been sold to a
standstill, as there was not a single transac-
ton in the stock yesterday. One trader
thought there was perhaps a prejudice against
all "Centrals," as Mexican Central and Illinois
Central shared in the neglect of New York
Central.
Chicago and Northwestern's great strength
remained unexplained. for while there was
talk OF an increase in thedividend this seemed
to be rather premature in view OF the fact that
until the preferred stock, which is now on
an 8 per cent. basis. receives dividends at
the rate OF 10 per cent. the common cannot,
under the bylaws, receive dividends at a
higher rate than the I per cent. which has
been paid upon it for some years past. The
amount of preferred stock outstanding is
s2a, 900. 900, so that an increase to 10 per cent,
in the'dividend on this issue would caQfor an
additional distribution OF $1,000 o annually.
OF course, such an additional distribution
would not be greatly felt by Northwestern.
but II is probable that when authorizing it
the directors would not care to increase the
dividend on the much larger volume of COM
mon stock simultaneously. Perhaps. after