The Washington herald., 1909-02-20
ALL EYES ON STEEL
Meeting Of Trust Directors
Watched by Street.
BALKAN RUKORs PLENTIFUL
UHofficisIIy Stated that the steel
Corporation VIII Have an Open
Market for Its Principal Products
in the Future-SOuthern Pacific
Asks Authority TO Issue BOnds.

New York Feb 1s.-Onee more to-day
and. Of course, inevitably, the iron and
steel situation completely dominated af-
fairs IN the financial district although the
market unsettlement that was brought
about thereby was al least partly in
creased by greater or less amount OF
disturbance IN the European markets over
the recurrence Of warlike rumors from
the Balkans.
These later stories were denied before
the day was over. but il seemed 10 be the
case that difficulties had again arisen
between Austria and Ssrvia. Uncertain
ues On the subject were al any rate suf-
hcient 70 cause weakness to-day on al
the foreign bourses and to lead 10 further
selling here on account OF London.
which reached according TO current esti-
mates nearly 5000 shares Of stock. II
seemed On the face OF things as II Lon
don had sold in the week, thus far prac-
ticslly al stock that II had bought in our
market IN the previous fortnight. and
undoubtedly. as the result Of this. ster-
ing exchange rose sharply to-day. move
ment which necessarily facilitated the
engagement Of more gold for shipment
70 Argentina on the triangular basis
Wants to Issue Bonds.
In the generally adverse temper Of the
market an unfavorable impression was
also sought 10 be placed upon the an
aouncement that the Southern Pacific
Company was to ask permission OF its
stockholders for authority 10 make an
issue Of Ss2ooo,oo0 convertible bonds. But
'nere appeared TO be no sound basis for
construing the Southern Pacific announce
ment as one in any way hostile 10 the
oest interests OF the company or even 10
the present market valuation OF the
Southern Pacific common shares
The company has now large floating
debt Which IS being temporarily carried
along and there is 10 doubt that the debt
has heeu created for entirely worthy p1lr-
poses, namely, the Improvement OF exist
ing Southern Pacific lines and the con
struction q new ones into rich freight
producing territory. The bonds are amplv
secured and the privilege Is extended 70
the stockholders 10 subscribe 10 them on
fair terms.
As the bonds wiz undoubtedly be taken
readily. the Southern Pacific viii sooT, be
IN possession Of sufficient money 20 pav
on its floating debt. the Union Pacific
being the chief holder thereof. and thus
the chief beneficiary, and 10 continue as
heretofore before making much needed
expenditures
Plans Open Market.
TO all these matters. however lfttls At
tention was paid. in view Of the allen
crossing questions regarding Steel Il was
unofhcia!ly stated shortly after midday
that the United States Steel Corporation
nWrWnCnH ~ m1
most of the principal steel products here
afteT-that is TO say. presumab bly, TO exer-
vice right 10 make such prices as It
wished. according 10 daily conditions.
without holding TO any standard OF stated
list figures. A formal statement Of he
chairman Of the board Of directors of
the United States Steel Corporation un
the matter was not made public until
considerably after the close OF business
hours
This PRONUNCIATION. although DELAYED IN
the matter described, exercised as much
force in the stock market during the day
as II Z were definitely known. Reports
came 10 hand. which might or might not
have been true, Of large reductions IN the
price Of steel bars and various other ma
terials in the Western markets. and the
general impression was that trade war
in the iron and steel business had been
started. II remains 10 be seen whether
this view Of the case IS correct.
Or one fact there IS, however, no doubt.
and that IS that the hand OF the United
States Steel Corporation has been forced
in this entire matter. Up 70 twenty-foU-
hours ago It was the firm determination
OF the management Of the corporation 10
pursue its policy of maintaining prices az
least until there was reasonable GER
tsinty as TO what the new tariff duties
were likely 70 be.