Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-02-22
Cut in Steel Sent Stock
Prices 7umbliIlg.
Stability Of Copper Feature Of
Last Weeks Market. :.
Disorder Of Stock Market Has Lit
tie Effect on Bond Market.

shifting current of the speculative sen
timent in the stock market Veercd de-
cisively in the direction of discour-
agement in the course of last week,
and carried values rapidly doWnwards.
The deciding factor in this result was
the accommodating evidence of Ian
gushing trade as exempllfied especial
ly in the iron and steel trade. The
halt in the revival Of trade had been
perceived for several weeks past and
with growing misgiving, but the policy
of the United States Steel Corporation
was announced to be for the preserva-
tion Of stable conditions by main
tenance of prices, based on the stated
conviction that a reduction OF prices
at this time would fail Of effect i'll re-
viving demand.
1t was asserted that the waiting on
the formulation of the new tariff
schedules was the motive fer the with
holding of orders. 1t was urged that
such cutting of prices as was being
done was by small independent steel
companies and that the business thus
placed represented SO small part of
the total business as to be unrepre-
sentative of trade conditions. In
sistent reports that cut In prices OF
steel was in contemplation We're as
persstently denied. The reassuring
effect on speculative sentiment OF
these associations were confirmed by
the determined support accorded the
stocks of the United States Steel Cor
.poration in the stock market. The
impression thus came 20 be held that
the vast centralized control i'll the
steel industry was to be determinedly
employed to maintain stable conditions
in the industry and to await patiently
the turn in the trade without going
through the disturbing effect of a cut
in prices and struggle for readjust-
ment Oh a declining scale.
When the realization came to the
stock market element on Thursday
that the depressed conditions in the
trade were to be recognized by IL price
reduction and an active effort on the
part Of the leading producers to Sc
cure business from competition, the
tone Of the speculation became semi
denoralized The slump In United
States Steel itself was the most con-
spicuoGs feature of the new turn i'll
affairs. 1t was rather notable that the
copper induStrials were comparatively
stable, those stocks having been de-
Ginning for some time previously in
company with the successive reduc-
tions going on in the price of the
metal. This influence had combined
with several others to give the week
a strong opening in the stock market.
The clearing up of the foreign stu
alton was of important effect on all
financial markets and a decidedly IA
vOrable impression was made by the
permission accorded by the New York
Public Service Commission for the is
suance of Erie bonds The freedom of
the money market from effect by the
various cash requirements upon ii
which were being met was considered
of good augury for the speculative
prospect An increase in the Peoples
Gas dividend and rumors of intended
increases Ill Il number of railroad divi-
bends helped to run out the rising
tendency which preceded the break
The speculative effect of these factors
were all swept aside by the Ia;er con-
sideration Of the trade outlook and
the realization that a scramble was
In prospect amongst steel producers
which might involve serious conse-
Guences to earning power. From the
industrial standpoint, it IS felt, even
III financial circles that the new policy
Of adjusting prices to the shrunken
demand offers tile shortest and surest
way ort of the depression into which
the steel industry has fallen. 1t is
noticeable that the disorder into which
the stock market was thrown produced
hut little effect on the bond market