The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-02-22
WALL Street
WAS DECEIVED
Spectators Had Been Told
Steel Trust Would Not
Reduce Prices.
NEWS CAUSED A SHOCK
RESULT WAS A DOWNWARD
PLUNGE IN VALUES.


New York. Feb. 21--The light and shift
ing currents of the speculative sentiment
in the stock market veered decidedly in
the direction of encouragement in the
course of last week and carried values
RAPIDLY downwards. The deciding factor
was the evidence Of languishing trade as
exemplifIed. especially in the iron ard
steel trade, The halt in the revival Of
trade had been perceived for several weeks
past ana the growing misgivings but the
policy of the United States Steel corpora
tlOn was announced 20 be for the pTeser-
walton of stable conditions BY inainte-
nance of prices based on the stated con-
Nlction that a reduction of prices at this
time would fail of effect in reviving de-
mand.
Reports Had Been Denied.
It was asserted that the waiting on the
formulation of new tariff schedules was
the motive for the Withholding of orders
IL was urged that such cutting of prices
IS was being done was by small. indie
pehcent steer companies, and that the
business thus placed represented so small
a part of the total business as to be I'M
representative of trade conditions Insist
ent reports that cut in prices of steel
vas IN contemplation were as persistentiy
denied, the latest denials coming from ac-
credited official sources until past the
middle of the week The reassuring effect
on speculative sentiment of these asser-
tons was confirned by the determined
support accorded the stocks CT the United
states Steel corporation en- the stock mar
ket. Repeated bear attacks were resisted
ana unwieldy short accounts in those
stocks driven to cover.
The impression thus came to be held
that the vast centralized control in the
steel industry was to be determinedly en-
ployed to maintain stable conditions in the
industry and TO qWait patiently the turn
IN the trade without going through The
disturbing effect of a cut in prices and
struggle for readjustment on declining
scale.
Shock to Wall Street.
II is necessary 10 bear in mind these
preliminary circumstances in order to un-
derstand the force o. the sudden reversal
of policy on the part of the principal in
terests in the steel trade When the re-
alization came to the stock market ele-
ment on Thursday that the depressed con-
ditIons III the trade were to be recognized
by a price reduction and an active effort
on the part of the leading producer to Sc
cure business from competition. the tone
Of the speculation became semi-demoral- |
lied The slump in United States Steel
itself was the most conspicuous feature of
tie new turn in affairs. 1t was rather /
notable that the copper industrials We're
comparatively stable. those stocks having /
been declining for some time previously /
in company win the successive reductions
going on in the price Of the metal. The /
comparative fiTmress of the copper stocks |
was furthered also by the statistics of the |
ton given out early in the week. The
clearing up of the foreign situation was
of important effect on all financial mar
kets- The definite promise Of growing |
ease in foreign money markets and the !
settlement of international questions had
put a stop TO the persistent liquidation Of 4
foreign holdings % American securities I
and had given place TO some buying in 4
New York on orders from abroad.
Erie Bond Issue.
\ decidedly favorable impression was
mace by the permission accorded by the 1
New York public service commission for
the issuance of Erie bonds.
The freedom Of the money market from
effect by the various cash requirements
Ipon il which were being met was con-
Sidered a good augury for the speculative
prospect Another moderate decrease in
die freight cars gave some hope of bet
oTment in the traffic situation. The spec
1lative effect Of these factors was all
swept aside by the later consideration Of
.he trade outlook and the realization that
2 scramble was in prospect among steel
producers which might involve serious
consequences to earning powers. Tt is
noticeable that tn disorder into which the
stock market was thrown produced but |
slight effect on the bond market