Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-03-28
GRAVEYARD" MARKET
Cynical Estimate of Present
Wall Street Status.
SEE PROVERBIAL EXCUSES
Steel Interests Playing With Tariff
Situation.
WAGES OVER THE EARNINGS
Drain Upon the Small Savings Ac-
counts of Little People Grows
Daily-Traction Tangle.
SEE PROVERBIAL EXCUSES
WAGES OVER THE EARNINGS
special Correspondence Of The Star.

NEW YORK, March %. 1909.
The market has not yet succeeded in de-
veloping what is known as a tendency.
Fluctuations within narrow limits and
operators are not taking any decided new
position. The cynics say 1t Is graveyard
market'-that those who are in cannot
get out and that those who are out have
no desire to get in. That is a very clever
description. but it hardly fits the case. In
reality, 1t is a market upon which any
amount of stocks that any operator or
group Of operators cares to sell can be
disposed of without very serious break in
prices, whereas those who wish to buy
are very rarely met with a deluge of
stun. 1t is, in fact, a waiting" mar
ket. Which condition suggests the re-
mark that the market is in a waiting
state about ten months out of twelve.
Its most natural condition is that of
waiting for something to happen. The
trouble is that the walters do not half
the time know what they are waiting for
and would not recognize it IL they were
to meet it face to face in the broad high
way in the full glare of sunlight. The
phrase Is convenient one to use when
people do not know what course to pur
sue or feel themselves incompetent to
properly gauge current situation.
Just now 1t pleases most people In the
street to say that they are waiting for
tariff revision" In this particular in
stance the statement is more nearly cor
rect than Is usually the case. The whole
country is waiting on tariff revision, and
1t is entirely possible that the final action
of Congress on this issue will be the sig
nal for the beginning of a grand forward
movement. Neither is it unlikely that
the actual vote will be anticipated and
that the stock market will early reflect
settlement Of the troublesome business.
ia nff {Synly In VIZ OF
present moment in connection with this
same tariff agitation is the widely adver-
tised decentralization in the iron and steel
trade. 1t would appear almost as though
the men In that branch of industry are
more than willing that the public should
know the worst that can be said and
know it hard. For instance, everybody
knows that the independents and the steel
trust are engaged in a deadly competi-
ton for the meager business and every
new and ugly development finds winged
currency wherever it would appear that
the most publicity would result. So
cion is engendered that the advertise
ment may be for Washington effect and
to aid in the formation of public opinion.
Everybody hears that contracts are made
break within a few weeks of $11. The
whole world knows also that pig iron
could be bought at almost any price,
sales being made as low as $14 for Bes-
semer and around Sill for Birmingham.
An ofsetting Circumstance.
1t is observed, however, as an offsetting
circumstance that business on this bank
ruptcy basis is OF the quick action va
riety. No contracts at red-fiag prices are
made beyond a period Of sixty days. Any
body desiring to avail themselves Of the
under-the-hammer quotations must be
prepared to take the stuff at once. When
= he. ,t@
to improve. the iron and steel-making
companies do not propose to be found
with their books full of orders for long
distance delivery at prevailing figures.
1t looks almost like a Job among
the rulers of the iron and steel indus
try. Accompanying the smashing and
slaShlng in classes of iron and steel
products is heard the wailing chorus
about wage reductions which must fol-
low the enactment OF q law along the
lines of the ways and means bill. 1t
is pointed out that inasmuch as the
greatest item of cost in iron and steel
and most other industries Is labor,
the burden of the cut must fall in that
that l. am giving, but 1t is the thing
which is talked about in Wall street, as
well throughout the length and
breadth of the land.
1t is, therefore, a fitting subject for
mention in this connection. That it is
regarded more or less as a mere tactical
play incident to tariff revision is shown
by the stock market deadlock. If it
were really believed that Congress would
put through the bill in the shape that
is now before the House there could
hardly fail to be a general smash in the
securities of many Of the industrials.
AS it is, there is an obstinate refusal
to acquiesce in the theory that Congress
will go as far as the ways and means
committee pretends to ask In the initia-
tive. Hence, the reluctance of holders
-Ir ft,nfy x,1,,
rent quotations.
Sustaining influence.
One thing that acts as a sustaining
influence to prices is the fact that in
vestors parting with their stocks would
simply have to turn around and rein
vest in other stocks. Most Of them
would have no other place to put their
money if they expected any return there
from. It is no time for them to embark
in new enterprises, and the banks dis
courage the piling UP Of any more idle
surplus on their hands. They already
have more money in their vaults than
| they can find comfortable employment
for. 1t is a we'll known fact that about
the most worthless thing on earth is
| idle money. The only way to give 1t
value is to keep 1t busy. What will
we do with our money!" is the question
| every investor asks himself or herself
in thinking of disposing of securities.
Finding no satisfactory answer, the re-
suit usually is that nothing Is done.
hand that is one reason why the market
| remains in it's present half dead condi-
ton. Conditions are recognized to be
unsatisfactory, but the futility of get
ting excitable over the situation or
throwing fits about 1T is recognized.
Hence, the disposition to sit tight and
await business developments.
A wager was made In one Of the big
commission houses day or two ago
that the steel trust earnings for the first
quarter would not run much beyond $40
OOO, 900, and that for the second quarter
the showing would be worse. The exact
terms Of the bet were that the earnings
for the first six months of the year would
not more than pay the preferred dividend.
In the conversation leading up to the
wager mention was made that the bulk
of the business done during this period
would be at cut of IS to SO per ton
from the prices ruling few months ago,
and that the capacity would not be more
than one-half of normal. When 1t is re-
called that during 1908 and most OF 1907
the profit was about SIS per ton on full
capacity, it is not difficult to figure out
loss as large as indicated by the wager.
The stock market may not be attractive
for the bulls at the present moment. but
there is certainly small comfort In 1t for
the bears. Even the nimble-footed pro-
fessionals on the floor Of the stock ex-
change have a hard time catching up
with the fractions The rank and file OF