New-York tribune., 1910-01-23
ALLAWAY'S REVIEW

7 we nave had a week Of securjtv ~
Net disturbance. Some incidents h..
oeen sensational There are faihro,
upon the Stock Exchange There is i'm
pehdihg scandal Litigation OF discon-
certing sort is beginning. 1t may even
come to pass-as the result of some crr
rent developments-that the entire Off,
cial character of the New York Stoc<
Exchange will be revolutionized.
Conspicuous beyond other things is N.
collapse OF the trading pool in Hockinr
CCal stock Mr. Keene captained II
The stock was lifted from 30 to o.
through years campaigning-and in
single day it tOboggans back To 30 azai,
1t is the popular Wall Street view thu,
the property is without value Cen
orally, indeed, IL is announced as worth.
less-the recent upward movement stio-
matized as a bunco performance. Rnt
there may be another side-there is an.
other: and il may even soon be disclosed
that Wall Streets critical vehemenee In
oyerdone-in so far, at least as relate,
to the intrinsic value OF the propertv a,
commercial and Industrial enterprise
While ck-jobbery in the shares NAV
Na
bounds of reasonable expectation tha,
there can be made an exhibit warrantinx
very substantial appraisement for ths
company not only in it's prospects but in
it's present tangible assets. II not worth
92. the stock may we'll be worth mora
than 22-and, very much to the point +,
can be stated that an important railroad
interest appreciating this fact can be
considered a bidder for the property.
But what is consequential FOR the gan
eraI market is that this Hooking Coal
fiasco does damage to public sentiment.
already excited by Rock Islands Christ
mas episode. What is hurtful-in A
broad sense-is that too many incidents
are being disclosed among Stock Ex-
change proceedings which seem indica-
tive merely of manipulation and machs-
nation-too frequent being records which
call for explanation and apology. The
New York Stock Exchange is more than
a quasi-pubic institution: and twill ha
pity IL through mistaken esprit de corps
there issues a challenge TO lawmakers AZ
Albany already none too favorabIy in
cltned. To be fair and above board al
this juncture-to pursue in simple way
the lines of fairness-is all that is neces-
sary-but no less is necessary.
At the extreme depth OF market de-
moralizatiOn one stock withstood attack
supremely-and that stock was United
States Steel common. As time and tins
again maintained in this review. Steel
common is the accepted representative
of American business conditions. When
sold down to not much above so profess
sional Wall Street vOciferated dire pre-
dictions of cOllapse-gave force TO such
predictions by making enormous COM
mitments upon the short side. But alb
sorptiOn buying at once appeared in
overwhelming volume. until at the week
end Steel common was the triumphant
leader of the list. Transactions in it
far and away eclipsed those in any other
security or group of securities, it's move
ment emphatic registration of public
| confidence in American prosperity.
The character of Steel buying was Of
the best From the public at large "odd
lot" orders poured i'm TO amazing extent
buying appeared of many thousands OF
shares in single transactions. of course
the usual accompaniment of short COW
ering aided the upward trend, but it was
not of signifying Importance
purchases for investment We're the gov
erning feature. No doubt much of this
buying was induced by the well founded
expectation that the quarterly Statement
TO be made public Tuesday afternoon
will be exceptionally favorable. 1t is
anticipated in we'll informed quar-
ters that a surplus available for
common dividends will be shown
equal to at least sixteen per cent.
There is no longer demand for such ex-
traordinary appropriations as were re-
quired while the Gary plant was in
process of erection, and beyond doubt
the time approaches when Steel common
will receive much larger dividend dis
tribution- Whether at this particular
moment dividend increase may be or
dered is not consequential. provided that
there is revelation of an abOunding sur
plus available. The we'll known con-
servatism of Steel management may de-
Ter QlNluSIlU increase uUJll JIlS tllLSS dlos
more settled Should increase come,
however, il would be accepted by the
business world as convincing testimony
to the soundness of the whole business
situation.
The splendid record OF the United
States Steel Corporation. the fairness or
its dealings with the public. with its
competitors. with its employees. with its
shareholders. is irrefragible answer TO
reckless criticism current concerning
American corporate matters. If the
greatest of all our corporations can be
conducted in conformance with law and
with just and equitable relations TO all
concerned, il follows beyond doubt that
any other corporation can be so admin
istered-and also that public senument
will demand the adoption of Steel meth
DDS as the general rule. Meantime. IL
is no cause for amazement that cautious,
shrewd investors should invest their cap
ital in the Steel stocks in preference 10
most others That is what is going on
Just now and what seems certain TO con-
tinue. Gauged by the plain standard OF
value and earning power-which VIII Do
strikingly revealed in Tuesdays state
ment-the Steel stocks at the highest
point they had ever been quoted nave
not received full market recognition