New-York tribune., 1909-02-21
The Financial World.

the weeks financial events is official annorr..
ment Of a new sales policy by the United s,s..-
Steel Corporation. In it's usual extrav,z.~s
fashion Wall Street receives this news q. - =.
involved quick destruction for vested ints-...s
Actually. this change Of front marks tha :.
ginning OF new era Of healthy business ~.
perity.
Through one of the most savage and ~
tracted panics ever known the United sta,s,
Steel Corporation protected credit and ss,
guarded public interest in mastery fashion :.
is Of record how the Corporation stepped IN ana
saved a critical situation by the purchase :,
the Tennessee Coal & Iron property EouaIv
eff1cacious in the maintenance Of business STA.
bility was its answering maintenance OF pr,c.,
To have cut quotations for steel products Will.
panic in force would have been 70 pra
'cipitate disaster. The Garys and Frfcks ana
Perkinses are conservators. not destrovs,
Now what means this new policy? Simply TIA,
the era of recuperation has dawned Recovnt,-
ing the necessity Of encouraging upbuiId,n,
movement. the Corporation wisely determines .
afford purchasers favorable opportupitv ~
making some price concessions-nOt Of exeas
sive character-but sufficient to encourages ths
placing of new orders Builders using str,c,-
ural steel. railroads needing rails and eouip-
ment supplies, no longer hesitate-viu
start the new campaign Of a broader develop-
nent than ever before known. This. essentially
is what the Corporations policy means
PettiIy futiIe-narrovly short-sighted-fs .nv
contention of any Wall Street contingent xesk
ing TO scent disaster that this new move OF the
Steel Corporation is one Of revenge upon inde-
pendent competitors. presaging a trads war o.
old time bitterness. From the very inception
OF the Corporation its chief aim and purpos.
structive trade fights It's treatment Of eor,-
petitors has been distinguished by more thar
mere fairness-ft has been studiously courteou,
and farsghtedIy liberal And the independent,
recognize this fact TO the fullest extent Thsr.
will be no trade war so long as the Steel Cor
poration is guided by the broad minded abls
men who now conduct it's affairs-men who ars
big enough 70 realize that individual corporate
prosperity demands national prosperity as fts
basis.
To sell the common stock Of United States
Steel because Of the situation created IS
TO display lack Of capacity TO grasp facts. The
dividend it now receives-yieldins more than
per cent. at present prices-is earned many
times over. while the Gary plant. now in oper-
alton. and built and paid for entirely out Of
surpIuses which would otherwise have been
available for common dividends. will add meal
cuIably 10 future net earnings
In the vast transactions OF the Corporation
timely cut in prices which must inevitably n
crease output can have no III effect upon net
revenues-may indeed increase them II is
case where the old motto applies: Large trade
and quick profits" II may also be noted from
another point Of view that the action taken
shows clear comprehension Of true economic
principles. There is attempt 10 baik natural
effect All this is utterly different from the
ruinous methods which prevailed before the
organization of the United States Steel Cor
pOration-so absolutely contrary 10 cherished
Wall Street traditiOn-as to beClOud the nsr-
row pessimistic minds of the traders ever
anxious TO garner profit on the short side
OF course. such traders il sufficient in number
and of sufficient courage. can temporarily pro-
duce a lower range Of prices, but only by ex-
cessive short sale commftments-for certainly
no actual owner Of Steel cornmOn-and there
are over $4,000 stockholders-is going 70 be
frightened out Of his property by fantastic Wall
Street trickery United States Steel common
is one OF the safest soundest and most prOmts-
ing investments in all the world II is the
ultimate heir Of all the profits which the Cor
poratiOn will earn over and. above what is
needed for fixed charges and preferred dtv-
dends What those earnings may amount 70 IN
few short years can only be computed IN
tens Of millions.