New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-27
FINANCIAL MARKET
Stocks in Strong Hands. with No
Bear Movement in Sight.

transactions will continue TO he confined |
to small daily totals until various un-
cortaintics IN the outside situation have !
in strong hands. and the tendency or
prices is I'm the direction Of higher levels
Repeated attempts 10 bring about sell
ing movement have not been productive
nj substantial results. and as rule
operators Who sell tho market short find
u extremely difficult 10 get the stocks
back. except at q loss. There Is. OF
course. nothing IN tho present situation
that warrants lower prices especially As
money is 50 easy. hut ON the other hand
I: is not likely that real bull specu'a-
ton will develop until tho corporations
Of the country know definitely where
they stand I'm regard 10 the sherman
antitrust law. The corporations and
bankers are not apprehensivc Of an un-
favora bic change in tho country's bust
ness I'm the event cf Supreme Court de-
cisions against the Standard oil ana
American Tobacco companies. but they
do not believe in encouraging rapid ex-
pansion IN the markets until u is known
whether or not large percentage or
our industrial concerns will have TO re-
organize in order TO be within the law.
The idea that the tobacco and oil com
panes may he compelled 10 dissolve is
generally held In the financial district,
but in spite Of this theory the stocks OF
both concerns have advanced and are
now selling at the highest figures re-
corded I'm more than a year, apparently
on buying based upon the belief that
whatever method may be pursued by the
directors Of the concerns In reorganizing
I'm order to comply with the terms OF
possible decision In favor of the govern
ment the stockholders will profit The
Standard Oil Company has taken the
trouble 10 announce that il has made no
prepa "a lions TO protect itself from tho
shock OF a ruling against the company.
r. this is so the company Is departing
from It's usual farsighted policy Of being
ready 10 meet emergencies. There Is q
slight possibility that the decisions VIII
be handed down next Monday, and x
they should be IN favor Of the compa-
MES brokers will not have TO complain
Of dulness on the Stock Exchange. II
against the companies prices may sell
off for a brief period, but in the best in
formed quarters It is believed that the
bull market OF 1911 will date from the
day Of the Supreme Court decisions ir-
respective Of the character Of the de-
crees.
Forward movements are expected 20
take place IN all lines Of trade in the
current year. and the foundation for i'm
provement is being laid by the accumu-
lation OF money in the banks and by our
growing foreign commerce. Against
debit balance abroad al this time last
year this country now has large credits
in London and Paris. with every indica-
ton Of a steady gain ir the strength OF
our position in the international money
market Time money IS not In demand
and offerings OF commercial paper are
light. but these factors do not fore
! shadow depression in our Industries.
Our industries are slowly on the mend,
and the present inactivity in money and
the low rates prevailing are simply the
aftermath of the unhealthy conditions
/ Of the last year both in money and bust
ness. Easy money always precedes
| trade expansion Local banks are not
being called upon for much money from
out of-town sources. as interior institu-
tions are well supplied with cash, while
the bank accounts Of corporations and
| merchants arc heavy and need no Dol
| steering from New York. The local insti-
tutions are IN a far stronger position
than they were able TO report az this
| time last year. and even with an in
creased demand for loan accommodation
! il is not likely that anything in the nat
ure Of high rates FOR funds will be OK
perienced before the autumn. Money IS
growing cheaper the world over.
Since the publication Of the annual re
pert of the United States Steel Cor
poration. which showed little more
than L. per cent earned on the common
stock. a demand for the issue has come
from actual investment sources, while
there also has been quiet speculative
! absorption on all price reccss'ons The
United States Steel Corporation has OK
pended and appropriated on new con
struction in tho ten years Of its orGani-
cation SAP. 4J23S3: in the same time Il
has spent S113.361 ,931 on extraordinary
replaccments and S26S 300 500 on ordi-
nary repairs, making a total for new
, construction. extraordinary requirements
and ordinary repairs Of SI9i l69"lo
| equal 10 Sl16 for each share Of the com
/ mon stock 1t should bc borne in mind
that all these expenditures have been
made out ~ earnings Whatever water
NAV have been in the stock when tho
company began business has been we'll
squeezed out The capacity al the CON
Germ has almost doubled in the last ten
wears. and when il can sell all the steel
It can produce its net earnings viii OK
cecd 5000 O0O.Or a year. Last year J.;
required S10J0pUW TO meet all the
ccmpany's charges including the COM
mon dividend Of = per cent. The steel
shares DO not look profitable for long
time bear operations. and tho same thing
may bo said Of New York Central which
is now selling at q level fully warranted
bv its reduced dividend rate. The time
for boarishncss on this Issue passed with
the announce mont that the dividend had
been cut from 6 - = per cent Whom
.c.i,.i,,. da,clor,s IN tho market II is not