The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-07-01
TRADING IS DULL,
PRICES STAY UP
ATTEMPTS TO DEPREss MARKET
BECAUSE OF INDICTMENTS
uNsUCCESSFTD.
/ STEEL REPORT BULLlSH
BUREAU or CORPORATIONS DE
CLAREs GRANT COMBINE
HAS ASSETS NEARLY
EQIALsNG CAPITAL.
STEEL REPORT BULLlSH

NEW YORK, July Although
trading IN Wall Street was duh to-
day prices were maintained and the
close was strong and fairly active.
Attempts to depress tho market be-
cause of the indictment by the Fed
era grand jury OF numerous steel
men were UNSUCCESSFUL One reason
tor this failure was the fact that the
pools of whivh the government COM
plains. ceased To exist more than a
year ago. Besides, the report on the
Steel Trust by the Bureau OF Cor
porations at Washington. was so ex-
tremeiy bullsh on the stock as 10
countersct all adverse influences.
Erie issues were active again, and
establishing new high records for the
year. Erie Is coming out OF it's un-
official receisershin In splendid con-
dition. In taking leadership iii order r
ing new equipment it has put itself
in the front rank. Atchison followed
its example by announcing the pur-
chase Of eighty new locomotives, and
1t Is weli-known the Atchison road
has decided to spend millions in dou-
ble-tra cking as rapidly possible. The
dry weather In the corn belt along the
Atchison has checked enthusiasm some
what. but crops In general are good
and a smaller corn crop can be had
:
enough old corn in farmers hands
to give Atcllison a record tonnage this
wear even with small failure IN the
now crop Other indictments are eS-
pected against officials or the steel
Trust aud other steel companies, II
The wire pools were a violation or the
law, there can be no question about
the steel rail pool and the cement poor.
The financial world believes that the
te. L 1ftrs ~
criminal courts is finally going III the
right direction although The feeling
prevails that If the wire pools were
d violation Of the law, It viii be al
most Impossible 10 lind amy large bus
/ iness interest able to escape indict-
nent. If this program IL carried TO a
! logical finish 1t Will leave the Stee!
/ Trust supreme, for by going after all
| business regardless of competitors, i
| can very quickly secure monopoly ny
reason Of its control Of raw material
and it's possession Of superior dis
trlbuting and banking facilities. Tho
situation is therefore, In favor of the
/ steel Trust stockholders,
/ The report made after three years
1 Of examination by the Bureau of Cor
I porations Was also received with grea'
/ Joy by stockholders Of the Steel Trust
/ The government i'll this report an
cation OF The Steel Trust it had tangi-
Bile assets Of market value or $bsZ,
| oDG 600 which WAS about half the capi
taIization Of the trust. The capftali
/ cation has not been increased i'll the
ten years of the trusts existence, but
I the government admits that tangible
assets have been increased in the ten
years OF the trusts existence but the
i government admits that tangible as
N a
total of sl,1s1,ooo ~. This is eighty
dxtn per cent. - capitalization. II
Is equivalent Iaving that the trust
has tangible scts worth the bonds
preferred stock and about so per cent
! Of the common stock.
| In establishing this value the COY
| erpment has taken the ore deposits
at value of about IL cents a ton
| and has left out the calculation o
business ability. the personal skills ant
experience Of It's officers; the value o
it's organization in its distribution
banking facilities ard good Will II
such an organization as the Steel Trus
these elements that have been omitte'
by the government are easily wortl
the other fifty per cent. of the com
/ plon. stock, and They Might, easily h
worth double that.
Thus, the governments report prove
10 be a tremendously hullisn argumen
/ on steel common and II confirms Iii
opinion often expressed 10y j. +. Nor
gan. that steel IL the best invest
ment in Wall street.
| Although the Bureau OF Corporation
announces that this report is not tina
its tenor is SO fair that it made Wa
| Street feel at ease. There is nothin
| IN the report that has not neen pub
| llshed repeatedly In the various finan
Ciai manuals and its Importance lie
| solely in the fact that the government
has reachc dthe conclusion stated. Tn
report also recognizes what Wall stree
has always conteaded to he Che fac
| that the strength Of the Steel Trris
depends largely on its control of ra,
| materials and .ap cheap trans pastatia
| fer these materials