New-York tribune., 1908-12-16
FINANCIAL AFFAIRS
STOCK TALUES LOWER.
Technical Conditions Induce Bear
.AttaCk-Time Money FIrmer.

The proposed investigation of Stock EX-
change specuIation by q state committee ap-
pointed by the Governor was not factor III
the selling movement that developed at various
times in the course of yesterdays market TOT
the good reason that the investigation OF the
methods employed on the exchange VIII help
rather than injure legitimate speculation wlllls
in no way will it have any bearing upon the
intrinsic worth of securities Honest speHuIa-
tIon has nothing fear from the opening OF
;,e hooks while nothing but good can come
from an effort to eliminate by legislation
abuses that may exist in the markets Tor STOCKS
and commodities The declines were based on
technical conditions. on the absence Of an out
side blIving demand and on the development OF
2 somewhat more aggressive bear party, which
especially was active in St Paul. Union Pacific,
Reading and Amalgamated Copper, in which
maximum losses ran beyond | per cent. Amer
lean Smelling, which recently has been under
heavy selling pressure, was a relatively firm
feature in the early trading on covering o.
shorts the warning from Boston falling TO ap-
peal TO the Street, which decided that the
generous advice from Mr.. Lawson TO sell the
stock was fair argument for retiring from
short contracts After these contracts had been
covered however, there was renewed selling
in the stock in sympathy with the nquldat1ng
movement IN other parts of the Inst, Whlch
reached its maximum pressure in the early
afternoon when the bear element, helped by
the sale Of margin accounts, enjoyed marked
success in most Of the active issues Another
reduction in the actual selling price Of copper
naturally induced speculative sales Of the metal
shares but on the decline in these securities
and elsewhere in the list stocks were absorbed
bv A good class Of buyers. especially the United
States Steel issues, which were heavily sold by
Boston. and to some extent by tnld traders
here who were absurdly affected by the silly
talk Of market knaVes who hope TO bring
shout lower prices at the expense of legitimate
investors for the enrichment of their own
pocketbooks The thimble-riggers Of the
stock market doubtless will receive some at
tention from Governor Hughes's investigating
committee. Last prices were above the lowest,
with net gains in Smelters, Missouri, Kansas
& Texas and New York Central
Investment holders Of United States Steel
ureferred need not be alarmed over the present
or future value of their stock because there
haprens to exist in the shares Of the corpora
ton large short interest which is talking
extremely bearish upon the securities Of. this
concern The idea that readiustment of
the tariff schedule on steel materially will les
sen the earnings of the big steel company
is not well founded and the suggestion that the
dividend on the preferred issue will be placed
in ieopardy is nothing more than the raving
of disappointed operators, who have misjudged
the market of the last few months and who
are making almost superhuman efforts TO ere
ATE feeling of unessiness and unrest among
investors in the hope OF inducing investment
LIQUIDATION There is a big short interest in
United States Steel common, and the tariff
argument is being worked overtime in the
expectation that eventually it will lead TO a
collapse in the prices of the Steel securities
Certain people from Boston are tremendously
soicitous over the future of the investors who
hold the securities Of the United States Steel
Corporation but the owners of the bonds and
preferred stock will continue to receive their
interest. while only extraordinary decreases In
earnings as 2 consequence of business depres-
sion VIII compel the directors to pass the divi
dend on the common. The United States Steel
Corporation. on a working basis of from 40 10
% per cent OF its normal. has been able in the
last year TO pay all charges and dividends
and expend the property large sums from
earnings It's operations under a revised tariff
would not for any length of time be i'm
portant factor against large income. it has
outgroWn the swaddling clothes of the infant
industry and is in position to make
large earnings for its security owners without
q heavy protected tariff imported steel In
shares may sell at a lower level. but il is the
belief Of the best informed and most conserva-
rive banking interests that the strength Of the
Tinted states Steel Corporation shown under
the most adverse business conditions fnsurcs
rernanent growth and higher prices ultimately
for its securities. The bear attack upon the
shares Yesterday resulted in a net loss in rhe
common of u and net loss in the preferred
OF Il.
StArling rates were irregular yesterday, but