Bisbee daily review., 1908-11-25

NEW YORK, Nov. 24.-Seldom have opinions concerning the stock market been so varying as during the past few days. A very prominent banker, who sees the loan accounts of several leading financial institutions and who is affiliated with prominent capitalists. said privately that 1t was perfectly evident that large lines of speculative stock held by the socalIed "big men" of all street had been unloaded dur ing the past ten days, and that, core spondipgly, many large loans were cancelled. ...
 There is no doubt, he says, that these stocks, or a great many of them, have been taken by the investing pub lie and paid for. He notes the loans have been paid up. He says further: Ordinarily one would look for reaction after this; but all depends upon the public and how fast it will come along. The pub lies eagerness to buy stocks astound- ed the leaders of Wall street ,apd I would not be surprised if this public took the market out of the hands of the Wall street leaders altogether and ran away with it, just as they have run away with it in times gone by" Of course. when the public "goes on the feed" in Wall street, and begins stampede, the whole coterie of Rockefellers. Harrimans and Morgans can not check them. But, however all this may be, 1t is clear that the avidity with which the public has taken stocks was such surprise to Wall street leaders that the hooks have been baited again and 1t will be seen to that the outsiders do not lose in. terest in the market.
 Steel common is the sensation. There was a conviction among good market judges when Steel went back to 54 last week that the big bull pool In Steel common had unloaded 300,- 900 shares; but the pool did not liqui- date. It remains intact in the skill full hands of MT. Keene.
 Probably the most powerful factor in the movements of little Steel" is Barney Baruch. He and his friends have a very large interest, and while not working for the Corner House, it is stated that Mir. Morgan has let it be known that he will not interfere.
 Of course, there has been selling by large operators. One man. who has
 
 lecture of chemical products. and a profit of s150,000 in little Steel" and decided on ednesday it was time to take his profits, and he threw his 15.- coo shares on the market, and the stock did not break an eighth. He bought it back again at an average of 56.
 Another and larger operator had 30,00O shares of Steel which he sold last week and cleared uU S750,O0O as result of four months buying. Brt such sales as these a19ear to have simply a tonic effect on the market for Steel common.
 In all probability, perhaps next year, or. quite possibly later, Steel common will sell very much higNer than 1t Is selling at now: but very few unbiased judges in Wall street think otherwise than tha tthis stock has discounted all that can happen in the steel in dustry for many months to come.
 Of course. the big card that is to be played in the future is the new plant at Gary. When this plant is finished, which will ba in 1910, the possible production of the Steel cor poration will exceed 14,000 tons of finished steel year; so that. assum. ing that there is a demand for this, the earnings of the company on the present scale of prices would be fully $210.000.000 a year, net.
 This figure is conservative. A man closely identified. with the steel in dustry. and who is very large holder of Steel securities. and who is fla miliar with the Steel corpo-ation, says that the earning power will be $250,- 100000 per year.
 It must be remembered, too, that the Steel corporation has so increased it's earning power and capacity without any additional capital outlay and with out entailing more fixed charges.
 The fixed charges of the Steel cor poration, viz. interest on bonds. sink ing funds, depreciation. rep acement, : per cent preferred dividends, 2 per cent common dividends, these today amount to sS0,00o, 900 a year, and by time the Gary plant is finished they will not exceed s90,000,00O a year.
 If this be deducted from the poten- tial net earning power of s210,000, 900 a year, as here set down, 1t would mean earnings above charges, pre-
  Steel common of S12O,0O0, ,0O0 a year, or real earning power for the com mon stock of between 25 per cent and 26 per cent. In the eyes of some steel DFf the earnings of the com mon stock would be fully per cent higher.
 A man intimate with the views ot the present Steel corporation man. agement says that, as earnings swell, the old stin policy on dividend dis bursements will cease. and, in all probability, Steel common will go on 8 per cent or per cent basis, and sell as high as and perhaps cross the preferred. The foregoing presents a view of the insiders on Steel common.
 This is the basis of their belief in the future of Steel. In passing, how. ever, let there be a word of admoni. ton. The shrewd MT Carnegie con. tinues to hold the first mortgage bonds of the Steel corporation, and it is not known that he Is doing any Highland filings or otherwise indulging in the common stock.
 Prospective investors, in weighinf in their minds all the really good and largely true facts and prognostica ! tions of the insiders in Steel common might do well always to bear in mind first: That remark of the same Mir |, Carnegie. which has now become { ' truism, to-wit: "Steel-It is either ( rIrince or a pauper;" and, second. thai now commonplace spho-ism of Napo | leon Bouaparte. when his great fieet lay of the coast of Boulooue wait'nl to invade England: Soldiers. let u