New-York tribune., 1909-06-16
FINANCIAL AFFAIRS
STOCK MARKET BRE4hS.
Hcary Loss in american Sugar Re
fu;ng-Monev Rates Unchanged.

Stocks declined yesterday as a CofSSAu' NJ
an oyerextended bull account and the absence
:. z.-o.ei,,e rnxing at time when the bear
ol,,,,an+ made a concerted attack upon the gen
.ral list following the receipt OF active ioItish
selling orders and sharp break IN amy %,
Sugar Refining the movement IN 'hlS ISSi7 Oei''S
due TO liquidation by frightened hoIderS anu
pressure from the room traders. Inc AIlei1O0 80
sugar Refining Company has confessed 10 IlloI d.
danrsvitv but il apparently intends 10 Ieao
new life and TO continue TO reflne susaI' ~
dentallv il may be mentioned that II mas O Ne9H
surnlus Of $4,000 600. Its stock ran on points
80 oo,,,-ared 4 closing on further weakness at
a net loss of So while Union Paclfc SOLO do""
AZ roints from its best figure. Cnlted States
steel 22 Amagamated Copper Z. NortheLl
Pacific 24 Reading IS and southern FdciHC
1A In the early afternoon the "ho'e ma tt5e
becoma dull with active declines before 'he
close on an Increased volume Of realizing ana
sales by commission house customers VINO Iau
bought at top prices in the expectation liia1 'i0
bull speculation would run on without hleIi ut
tion. II is hardly necessary TO say that theSe
traders lost bv the operation. Bear sentiment
was quite marked IN speculative circles put
there was no unanimity OF opinion over tiAo
probable immediate course Of values adNocateS
of better quotations continuing 10 PIN theiF Id1'i
10 the theory that the easy position OF money
and the growing strength Of industrial conoltlohS
would bring about a higher range OF quotations
The decline yesterday caused no suIpIlSe Ia
circles where market movements nave Deeii
closely followed and in view OF the recent Hl$-
ni-ulation in Wabash and other low.grade issues
-, raraf,,1 operators thought it wise TO stay
off the bull side until evidence Of good buying
was presented in the standard shareS- Inc
only strong features in the five hours OF uau!ns
were Great Northern ore certificates and the
Interborough Metropolitan and Third Avenue
shares Money rates We're unchanged.
Though the common stock Of the United states
Steel Corporation fully measures at its current
market price the Improvement that mas taken taken
place in the iron and steel business IN recent
weeks and that which doubtless will develop in
the course of the next few months, there is no
reason for the statements that are heard in
rnisnfor1ned quarters that the quotation OF the
issue is entirely out of proportion TO the actual
merits Of the security and that the S506,00O,OoO
common stock outstanding represents little
more than water. People who make such an
assertion display a remarkable disregard of the
facts governing the value of the steel shares
and apparently show profound ignora4ce Of the
progress made by the United States Steel Cor
poration since the time of it's organization. The
concern has paid out in dividends on the pre-
ferred. not including those declared in the pres
ent year. S21S.s7500O. 5412 per cent, and on
the common SIS, ,765, 600, Is z per cent. and
even in years of extreme depression in the steel
industry II has been able TO pay per cent on
the preferred and per cent on the common,
with comfortable surplus left over. In 1905
the corporation. after ali deductions. showed a
balance Of tss126.5s6. in 1907. s105,247,0S0, and
in the bad period Of 1908 surplus or %4o oS4o ~,
the latter being equivalent to 12-9 per cent on
the preferred stock. The company's earning
power has increased each year, with the excep-.
ton Of 1904 and 1908, and with the completion
of the Gary plant II will be in position to earn
in the neighborhood of s2250OO,000 a year on a
reasonable basis of prices for its products The
great expansion in the business of the United
States Steel Corporation since 1902 has been ac-
companed by an increase in its capital obliga-
tions Of only. s55000,O 900. while in that time ex-
penditures the property from earnings have
approximated sS0S, 100000. and from careful
compilation made by Eugene Meyer. tr.. & Co.
Of this city, the corporation shows possible
earning power OF about IA per cent running at
100 per cent Of its capacity, with prices taken
at the lowest for any year in its history. When
the Gary plant is in operation, with the entire
property running on full capacity. possible earn
ings on the common stock estimated at 1S
per cent 25 per cent and 80 per cent. based. re-
spectively, on the lowest. on the average and on
good prices. Speculation that may bring losses
TO the operators engaged in the transaction is
no indication that the common issue will not
eventually be a highly priced investment. So
much talk IS heard about the Steel Trust" and
its "watered capitalization" chat the facts Just
stated may prove of interest to persons who have
their savings in the corporation.