The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-09-22
LIQUIDATION Of
STEEL CONTINUES
COMMON AND PREFERRED ROTH
SELL OFF MORE THAN FIVE
POINTS FASH.
SUIT IS IN PROSPECT
CORPORATION WOULD LIKE TO RE-
ADJUST ITS AFFAIRS. But
DOESN'T KNOW JUST
SUIT IS IN PROSPECT
BY THOMAS C. sHoTWTLI.

NEW 1ofsh, sept. Zl.--l-iQ uiQation
OF steel shares continued to-day. car
rying the common and preferred down
more than points each. They did
not rally at the close, even after that
break. The entire industrial list held
remarkably Arm. Some railroad shares
even showed net gains as q result Of
the days operations, The volume of
trading was heavy. with Steel con-
tributing about $50. zoe shares for the
two issues. Steel shares were more
than half OF the entire days business
To the official total of nearly a mill
lion and a quarter shares for the
whole market must be added at least
200, 900 shares OF stocks sold on stop
orders and not reported In addition
to this the Consolidated Stock Ex-
change had q business OF 23o. goo
shares. Odd lot houses reported heavy
sales by small investors and this cir
cumstance usually means that the
market Is IN position to be rallied
materially
Reports were In circulation of suits
TO be brought against the Steel Cor
poration 10 force dissolution. f. H
Gary. head OF the trust. refused to
make any statement either confirm
ing or denying the rumors The gov
eminent said no suit had been be
gun yet" The Steel Corporation vol
unteered more than a year ago to re-
adjust its affairs TO conform with the
governments ideas OF legality under
the Sherman antitrust statute. The
government agreed TO give IT an OPP
portunity to do go. II, therefore, q
court action is to be begun the only
possible meaning Is that the govern
nent has made demands that those
in charge OF the Steel Trust consider
unrsasona bic, demands that they will
fight to the bitter end through the
eourts. 1t Is extremely important,
therefore. that either the government
or the Steel Corporation itself let the
public know as quickly as possible
exactly what the situation Is In this
respect
May Have to Go to Court.
One other report was that Herbert
Knox Smith, Commissioner OF Cor
porations. had finished the secpnd
section of his report on the Steel Cor
poration, and that 1t contained a
drastic arraignment of the trust on
account of alleged pooling agree
nlents The first half OF Commits
sloner Smiths report. made some
months ago. WAS manifestly unfair to
the corporation. 1t might easily he
that starting with the false premises
contained in the first part of his re-
port. he arrived at some remarkable
conclusions that make 1t necessary
for the Steel Corporation to fight the
matter out in the courts.
Weakness II Steel preferred was
the most natural thing possible under
the circumstances. Warning was is
sued In this column weeks ago against
the purchase of preferred stocks of
industrial companies selling much
above par In the event of dissolution
all preferred stocks would have To be
retired at par unless some other
method OF retirement Is specifically
stated in the charter of the company.
To give anything more than par for
Steel preferred would be an injustice
TO the common stockholder and suits
in equity would prevent IL But. on
the other hand. Steel preferred could
not be retired at less than par, and
neither could the sinking fund bonds.
so that those two issues are about
down to intrinsic value. The lowest
possible estimate OF the intrinsic
value OF the steel trust leaves more
stock, and IL 1t is not worth that 1t
sold at to-day 1t is not worth any
thing. But the market Is paying no
attention to actual value.
Stocks From Europe.
In addition to the heavy iiQuida-
ton of actual investments In America
the market Is under the influence of
the arrival OF great volume of stock
from Europe. Two more steamers
Will arrive from Europe tomorrow
with great bundles OF securities that
have been sold. and these will be used
for delivery against outstanding con-
tract. Another batch is expected to-
ward the end OF next week
Missouri Pacific's report made more
Of an impression on the market than