Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-11
BULLS AND BEARS

! NEW YORK, June 11.-Those who are
| looking for improvement in the stock mar
ket now seem to be pretty well convinced
that 1t will come gradually, but they realize
that there are still too many unfavorable
factors In the situation to make sharp
and sustained recovery natural. The failure
OF Millfgen Brothers has naturally pro-
duced an unfavorable impression and those
who are familiar with the operation Of
banking and other financial institutions
know that large amount Of money In the
aggregate Is tied up indefinitely In the Sc
curities Of enterprises which were started
two years or more ago and for the security
OF which there has been only limited
market at the best. Not only have invest
ments Of this kind been large, but It has
been necessary to furnish a considerable
amount OF actual money to keep the enter
prises going. Some Of this money has been
supplied from private funds and some OF 1t
has been borrowed.
In the event Of poor crops and general
business depression 1t Is realized that the
foregoing would be decidedly unfavorable
factor In the general situation. 1t is fur
Their known that for some time the banks
have not been disposed to loan money to
these new enterprises and only to those
that are we'll established. Consequently
not few Of these concerns have expert
enced more or less difficulty In getting
ready money with which to carry on their
construction work or to do regular bust
ness. A report Of very large corporation
says that in many instances 1t has been
difficult for large corporations, particularly
the railroads, to sell securities that they
have not been able to make prompt pay
ment on new work or in the regular course
of business. He Is absolutely confident
that there must come a letting down in
general business that the needed
in the regular course of business and even
for improvements and new work will be
obtainable at reasonable rates. He does
not predict any serious depression, but he
says that the point has been reached
where the matter Of retrenchment is not
question of policy, but absolutely one OF
compulSion.
Within the next few days no special
change In the stock market is looked for.
1t is believed that it will continue largely
professional. but with a tendency toward
Improvement. The idea apparently Is be-
coming more general every day that pretty
much everything Of an unfavorable char
acter that may develop has already been
discounted in the present level Of prices
-
President Maben Of the Sloss-Shef1eld
Steel and Iron Company has arrived from
Birmingham for the quarterly meeting Of
the board Of directors, which will be held
today and at which the dates for the pay
ment of the regular quarterly dividend Of
~ per cent on the preferred stock will be
fixed. Money for the payment Of the full
dividend for a year is set aside at the be-
ginning Of the fiscal period, inasmuch as
this must be done before any payment can
be ordered on the common stock. Mr.. Ma
ben says that the car supply is greatly I'M
proved and that the company is now able to
move it's product with reasonable prompt
ness Practically all the output for the
current year has been sold ahead and the
company has in its yards only small
amount Of iron. Some orders have been
taken for the first quarter of next year.
The company is making extensive improve
ments progress on which will be discussed
at todays meeting. Mr.. Maben says that
within the last week ten days there have
been fresh inquiries for iron, which he be-
lieves will result in substantial orders a
little later on. The tendency of late has
been to buy in a hand-to-mouth fashion.