The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-25

Steel Corporation, hoVNveF, never showed
any dlspualtloh n acquire tha psupeFtlsa,
and from tlHs n tins thevs haa l~ea y
w~nFvnce ~ rim0fa that The NuaIthrrn
conc~rns themselves might enter lHto .
combination ~ wsar var upon N" cuao~rn
Witch frfisHt a. take thsm nvsF IN thstF
pfrsant state s,u'irs ~ p,sslhis frpflsals
rtpi tho ctutiu,ls sIegreilon mads ~ tho
srsni invehipf ~ 'he steam enHiHe ~ w
chat would urciif Nv cte- y duc Ru' w
from, ~ his luc a%nuiiyc. and tlr ahswef
~ no errnl engineer ~ much iks w1tss TOE
thr urw MT Ignoring ihssr fIfnnfs
aitnrrth~f. tho ftri rpmaina iha, Tho South
rfn rrntofns have fof su'r- months pas,
lsen mailing slfDna eFofts w increa~'
ihrif output, and glowing takes have lT~h
told N tho etlent ~ witch current earnings
wrr' running IN rScrsa ~ lhose lasi traf,
Ttr very natural infprencs Ia that tho
d"sirr io show ~ lafnr earninar out weighed
conservatism. and that temporarily the
market lrcamr ovetsnpplled, whilr sntna
" tho concerns. not hing Overahnndantly
supplied With working capital, wrtr obliged
10 s~ll NJ u price which probably NOR nearly
represented the legitimate trade conditions
than tho nominal quotations " 81 NJ Shich
tho r1rko, had hecn held for aome time
before, Obviously, such n condition OF
Affairs cannot hc accepted az an indication
that there ia any lrsscning Of activity In the
iron ard Hteel industry 81 The country AT
large, Even NJ The lower quotations every
producer ~ iron In the South could make
money. while in the case Of plants having
modern equipment the net earnings would
bc sufficient to Yield very handsome profits
There has been no evidence Of weakness In
the Northern markets., but on the contrary
there has been n scarcity OF bsssemer iron.
and on the whole the position continues
exceedingly strong. The Eastern BAR Iron
Association and the Nut and Bolt Associa-
tion met on Thursday and rea ffirmed prices.
Not unnatu rally the pessimistic talk on
the iron and steel trade extended to the
copper market, and was accumulated by
selling pressure on Anna gamated Copper
stock, but apart from a declining tendency
in the London copper market. which has
been the subject OF a great deal Of manipu-
lation, there was nothing whatever to indi-
cate that the trade situation had under
gone any change. The important fact is
that the PR capita consumption Of copper
continues to increase, and while, OF course,
fluctuations must be expected, the prob
ability Ia that, taken by periods OF years,
the consumption will continue to increase
until checked by the limit OF produc-
ton. The same holds true about iron.
The production and consumption Of the
latter in this country was 100 pounds in
1870, 200 pounds in 1880, 800 pounds in
1900 and in 1900 $50 pounds. In 1905 the
production Of iron in the United States
was 1922, 992 $50, against an annual produce
ton ten years ago Of only IL $50, 79s tons.
The money market showed no important
change during the week except for a little
%etiffening in time money. resulting probably
from the unwillingness Of some Of the banks
to make time loans in view Of the necessities
involved in connection with July disburse-
ments; but the reduction in the Bank of
England's rate of discount indicated an
easier feeling abroad and was reflected
in a weakening in the exchange market
which brought demand sterling down to a
point where for a time the possibility
Of gold imports was suggested. but banking
interests expressed the opinion that for a
month or so gold was not likely to move
this way, principally for the reason that it
was not required. The lack Of any bull
speculation in the stock market tends, of
course. to keep the money sit uation fairly
easy, and the present rates for time money
indicate nothing more than healthy COM
mercial requirements The support which
had been extended to marlborough Metro
politan stock for months past was with
dra wn and the price was allowed to drop
to a level at which it attracted attention
from the trading community in view of the
fact that the increase in the earning capacity
of the system gives promise Of not only
making the dividend on the preferred stock
entirely secure. but sugge sta that even the
common may have fair dividend possibili-
ties within the next few years. Toward the
close Of the week pressure was again exerted
against the market on account OF the in
tention of the Government to prosecute
Standard Oil officials and to institute a fuller
investigation of the me. hods Of that com-
pany. but in conservative quarters the view
taken Of this matter was that II the Depart
ment Of Justice felt sure that violations
of the law were committed by the Standard
Oil Company or any other corporation only
good could come OF the suppression Of the
illegal practices. The only apprehension
was that inquiries might be conducted in a
way to create dist rust where there was no
cause for it. and II the Street could feel
| assured that the effort to enforce compli-
ance with the law on the part Of the Standard
Oil Company would be 10 conducted as not
to interfere with corporations which comply
strictly with the letter and the spirit Of the
| laws, both State and Federal, under which
they operate, the more promptly and thor
| oughly the matter was pressed to its con-
clusion the greater would be the satisfaction
| felt. There is no doubt, however, that
there is a bear clique at work in the market
which ia ready to seize any preteSt to aid
it in attaining its end, but the fundamental
conditions are so sound that but little head
way has been made in the bear campaign,
and there is still a willingness to participate
in bull movements in good stocks like that
in Southern Pacific, and which appears to
be based on the possibility Of q dividend
declaration next August.
EINlNCId AM IN