New-York tribune., 1907-06-16
The Financial World.

missal of crop damage sensationalisTn. Mr. HiI
says now, just as Mr.. Mitchell said fortnight
ago. good crops assured OF course weather
conditions cause loss; but there is no such de-
struction as Wall Streets oracles have been pro.
claiming. For the agriculturist and for the
railway both there will be ample volume OF pro.
duction.
Hysteria in the grain market disappears. Ths
most aggressive of the spectators seem to have
new lights: there is no longer any of tha
gambling plunging which claims crop destruc-
ton for foundation.
Other than to the crops nothing that is
important develops this week-in SO far
rent stock market conditions are involved Rail-
way traffic does not diminish There is no sign
of trade contraction Here and there are de-
velopments construable as adverse: but every
of them all is qualified. 1t is easy to find
prophets of hard times-short of the stock mar
ket; but actual evidence of anything else than
prosperity is not anywhere discoverable-
Dullness has been the most noticeable feature
of this weeks market Stock Exchange bus-
ness. indeed. has far contracted that smaller
volume has been registered the average than
inNany week for years past. Commission houses
doing almost nothing. Few room traders OF
the first class show much interest in the mar
ket. 1t is difficult to find anywhere any dispo-
sition toward activity.
Under such circumstances what is OF more
consequence than other things is in the owner
ship OF stocks-who actually are the present
holders OF securities 1t is the popular view
that few rich men have for months past been
absorbing what has been thrown on the market
through liquidation; and perhaps the theory il
well founded: but conclusion to this effect is
based upon guess work. 1t is difficult 10 induce
any financier OF prominence and Importance to
m ba ct rIyar
tion and it's prospects Thus there is drifting
without any apparent disposition on the part or
anybody TO contribute guidance or control
What is certain is that upon the surface no In
fuence OF any consequence seems ready TO do
try to do anything.
In market narrow as that now prevailing
exceptional opportunity is offered. OF course TO
guerilla tactics; and indication that this is ap-
preciated appears daily in the pin pricking per-
formances Of little folks in and about the Stock
Exchange. We have thus market OF pettiness
Little things given large perspectives. Take,
for example, what proceeds regarding New
York's local street railway stocks. All are under
pressure, all are assailed-by picayune specula-
tors in picayUne ways. The Wall Street at
mosphere is charged with suspicion: it is whined
everywhere that proceedings" are about to be
disclosed against the Interborough- Metropolitan
and all it's relationships. One set of tales has il
that bondholders are to begin lawsuits. other
representations have it that stockholders them
selves TO object 10 receiving dfvf-
dends that are not earned. while vet ad-
dltfonal reCitations the effect that
Mr.. Hearst's friend the new Attorney General
OF the State Of New York. is to carve the prop
erty into what 1t should be Interborough stocks
are weak-nothing strange in this nothing new
Nobody is unaware that InterbOrough preferred
SFv-iI
ings show; and nobody is unprepared for the
argument that 10 continue to pay such unearned
dividends falls little short Of efrrontery-amount
actually TO invitation TO adverse interests to
haul the corporation into court. Upon the other
hand no informed man Is ignorant OF the fact
that the Interborough inherently is far and
away worth more than is represented by the
current market value of its securities-funds IN
tremendous volume going out OF earnings into
the property's physical Improvement There is
a big short interest in Interborough. All the
oracIes sure that materially lower quotations
can be forced II is exceedingly doubtful how
ever. whether Mr. Thomas F. Ryan and Mr..
August Belmont are going TO be forthwith dis
cipIined
Some effort was made in the early part os
the week TO create a sensation touching United
States Steel Corporation values by representa-
tions that Mr. Gates and Mr.. Schwab were in a
combination to consolidate important fnde-
pendent steel making with Mr. Corey OF the
United States corporation seeding 10 the new
enterprise. In far as these bulletins wers
intended to affect the stock market they fell fiat
The fact stands out that against all assault
upon the part OF speculative interests the value
OF the steel corporation shares is at no tins
affectable except in the sIghtest degree. From
the trade point of view rcthing could be mora
satisfactory than current conditions Of the
United States Steel Corporation. The whole
vast plant under their control representing Jnore
than - per cent OF the steel output Of the couu-
try, has orders hand which Will keep proG-,-
! tive capacity taxed to its limit beyond the
mer of 1905 And these contracts are at pre-
vailing prices. There has been no reason for
concession or the part of the manufacturers, nor
is there any prospect Of any concession beCOnl-
ing necessary. The steel trade Is in peculiarly
favorable shape-for every output of every fur
mace there Is overwhelming demand. Domestic
consumption alone presses upon producing
, capacity, and in addition thereto foreign orders
seek quick execution. Such small erratiC f1uC-
tuationS as may appear in this great primal in
duStry are without influence uDOn total result.
The steel manufacturers of America have behind
them home market Of unparalleled proper
tIcTls. and even should that slsCken-of which
. there il no sigp-their surplus output has await
/ ing 1t abroad instant demand In olden times
MIR. Jay Gould uttered the axiom that Iron IS
days when we produced the raw material ana
were insignificant as manufacturers. To-day the
Gould axiom Is Just accurate ever, bUt
steel must be substituted for iron" The
United States now is the greatest manufacturing
steel producer in the world-and just 50 long "a
I this enormous industry keeps pace with deve-
Opment and records more orders than existing
plants can ill. just SO long must the barometer