The Washington herald., 1907-02-01

the Steel Corporation continues to Increase
at a rate fully in keeping with that shown
for the last quarter, and that unless all
signs fail the volume OF untitled orders at
the end Of the present quarter will make
new high record. Up to date, it is said
the corporation has increased the tonnage
OF orders on its books by about 100000
as compared with the total on the last
day Of 1896, and the statement Is made
that there was UP to the time Of the direc-
tors meeting, on Tuesday, absolutely no
sign Of any let-up.
The iron and steel trade has long been
regarded as a fair barometer Of the gen
eral business conditions OF the country,
and a reading of 1t at this time does net
show any sign Of a contraction in business
such as Wall street has been talking Of in
the last few weeks Perhaps no less in
teresting from the same standpoint is the
fact that the Atlas Portland Cement Com
pany, whose business furnishes clew 70
the conditions of the building trade
throughout the country. Is breaking all
records in the amount Of its sales. In the
current month the output viii be about
l5OO,0OO barrels, or nearly double that OF
the corresponding month a year ago.
on January Is. the day on which the re-
cent decline in the market began, United
States steel sold as high as 1855 The ex-
IRENE low point on the break this week
was 104 so that the total decline has been
less than points
In the same period several other stocks
went down 10 points or more. Union Pa
cific's decline, for instance, having been
121a points from high 10 low, and the sta
bnity OF Steel preferred has naturally at
tracted a great deal OF attention from in
vestors.
Some months ago a story went the
rounds OF the street that certain large
and conservative interests IN the corpora
ton had expressed the opinion that the
preferred could from that time forward
be regarded as a perfectly safe invest
ment. and while no definite confirmation
Of that report has ever been received, the
action OF the stock recently under the In
nuence of conditions unfavorable to the
market as a whole has been taken as cir
cumstantial evidence of truth OF the ru-
NOR.
II was. Of course, entirely natural that
Steel preferred should remain relatively
strong. even when other stocks Of merit
were weak, for the conservative policy Of
the directors in regard to the rate Of divi-
dend on the common stock, involving the
application Of surplus earnings 20 better
ments, means that the ability Of the cor
poration to earn It's preferred dividend
under all circumstances has been made
more strongly secure than ever before
SO much has been accomplished in this di-
rectiOn that If business keeps I'D TO its
present volume the common stock divi-
dend may be increased in April while still
leaving an ample surplus for improve
ments.
Some Disappointment was felt because
the heavy liquidation Of Union Pacific by
brokers who often execute orders for
some Of the large interests In the prop
erty did not cause a more vigorous recov-
cry, but the reason for the comparative
lack Of response was plain-the insiders
were not trying to mark up quotations.
but TO get stock as cheap as possible
On Wednesdays break Union Pacific got
down to a point where the yield on an
investment in the stock was as high as s
per cent. and it required no expert in
values to see that Il was by no means
dear on that basis On the day OF the
announcement OF the dividend last Au-
gust the stock advanced to about yesteT-
days level. Notwithstanding that there
was a great volume of profit taking on
the good news. Since then It has twice
sold UP to l95 3-S. first in September and
again In December. If, as is supposed,
the large interests sold out a good part
of their holdings at those high figures,
il can easily be understood why they
did not show any particular anxiety to
get the stock away from its low level
It has often been surmised that Union
Pacific interests began 20 distribute the
stock on the day the dividend was an
nounced, and distributed il all the way
up 10 within less than . points of the 200
mark. II this Is SO and they we're long
of money during the period Of high rates
last December, and not long of stock
II they have now been able to get back
what they sold at price lower than the
average at which they had previously
sold IL viii have to be conceded that they
have executed one Of the most skillful
market turns that Wall street has seen
in many months
Not less nOtable-though less noticeable.
being better disguised-than the buying of
Union Pacific by strong interests in that
active issues by a veteran operator. who
is supposed to have been the manager of
the bear pool that has been operating in
the market for about two months This
buying probably represented the saving Of
shorts. and houses that for some time
past had been lending stocks to the brok-
ers employed by the operator In question.
said that a considerable part Of their
stock had been returned, although the
borrowers stu retained a sufficient
amount to leave IL doubtful if they would
not continue 10 raid the market whenever
favorable opportunity presented itself.
Rumor said that 1900 shares of Read
ing had gone on Thursday into the hands
Of prominent banking interests. where it
would probably remain indefinitely. so
that the floating supply in the street
would hereafter be smaller than ever.
Members OF the original bull party. while
bullish on the stock in a general way, did
not encourage expectation OF a quick up
ward movement. They said the company
was doing well. but that Mr.. Baer was
not in favor of paying large dividends.
and intimated that no special distribution.
or melloncutting Of any kind could be
looked fer. tt the earnings so far this
year have not come up to last years rec
ord Il is expected that last year extraordi-
nary efforts were made to get the com
pany In position 10 withstand a strike, so
that last summer there was so much coal
on hand that the movement from the
mines had to be kept down considerably
below what it would otherwise have been.
Runaway Boy Captured.