New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-25
FINANCIAL MARKET
Cuts in Steel Bar Prices EnCour
a1e Bear Activity on Stock
EXCHANGE.

lower price for United States Steel COM
mon but the decline recorded was not IN
proportion 70 the efforts expended Elk
recitation Of price reductions on various
lines of steel products has been effective
i'm producing certain condition Of I'M
settlement in the trade. but il has not
brought out stock from important
sources or created any pessimism IN iron
and steel circles over the future Of the
industry. II the steel companies are not
able to secure business at prevailing
prices they doubtless will not hesitate to
make more attra ctive quotations TO con-
sumers. notwithstanding the fact that
existing official quotations are much
lower than they have been at any time
in several years, reflection Of their att.
tude being found in the announcement
yesterday by the Republic Iron and Steel
Company that II was prepared 10 accept
orders at lower figures There was a
steel price war in the early part Of 1909.
The declaration Of al open market at
that time by the United States Steel
CORPORATION was followed by general re-
ductions which in turn were succeeded
by recoveries and wider and better de-
mand for iron and steel: likewise by
gradual improvement in the price Of the
United States Steel securities. History
should repeat itself in the current case.
The general market was irregular and
dull in the best part of the day, Steel
common. Reading. Union Pacific, Anal
gamated Copper. American Beet Sugar,
American Smelling and Western Union
! being the only active features. the last
named enjoying greater degree of
strength than recorded in any other part
Of the list Prices rallied easily when
/ ever selling pressure was removed. but
/ no attempt vas made TO inaugurate an
( active upward movement. II is not
( likely that anything further will be done
along bull lines until after the American
/ Tobacco decision has been handed down
/ The Republic Iron and Steel Company g
/ bars was reflected in moderate declines
/ in the prominent stocks in the late after
noon, and closing prices were heavy on
an active market without. however. the
accompaniment of important liquidation.
The larger interests were disposed TO
give the bears a free hand for the time
being Some rather large traders are
working on the bear side Of speculation,
but a sustained decline is not looked for
by the best informed people.
Reports in speculative circles that a
large amount OF st. Paul common stock
/ has been sold by persons closely identi-
/ fed with Standard on interests find no
confirmation in official quarters. AS a
matter Of fact. the information comes
! from trustworthy sources that st. Paul
/ insiders not only have not sold any of
/ their holdings Of the stock, but have in
/ recent weeks been buyers of the issue on
| the Stock Exchange, notwithstanding the
/ fact that the company's earnings so far
! in the current fiscal year suggest a sur
/ plus Of only little more than , per cent
| on the common. Apparently there is no
/ intention on the part or inc directors 10
reduce the semi-annual dividend, which
will be declared in the early part OF
July, while it is quite likely that the
company's annual report will show more
! than 81 per cent available for dividend
purposes 10y the addition to income aC-
! count Of funds received from subsidiary
companies and from surplus earnings of
! the Puget Sound extension. The St Paul
| has had many adverse conditions with
which TO contend In the last year. but
/ holders Of the company's issues need not
worry about the future Of the property.
( II is n railroad Of great potential
/ strength No important change was re-
/ ported In yesterdays money market. al
| though quotations for time funds SHOW ed
| a somewhat easier tendency