New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-02
STOCK MARKET REVIEW
Break in Prices at Opening
Recovery at Close.

Oversbadowing the stock Exchange yes
terdav there were various issues Whlch
ind;yiduallv at another time would nave
formed important influences. but the
overwhelming one was the bad steer re-
mort. This report was so very much
worse than even the extreme peSslhlsts
Of Wall Street had predicted that IL zen
like a wet blanket on the market ana
seenad TO threaten a general decline.
The Stock Exchange opened win the
initial break Of is in Steel common ana
with Union Pacific l point down. Inc
oponing OF other stocks Indicated niue
change. but il was not long before neaVy
sailing had forced the decline in steel TO
o. in Union Pacific 1s4, in Reading 10
and approximately a point IN lhos'
other active stocks. AT noon, however,
inst when confidence seemed to 90 losing
i,s hold on even the optimists, some
heavy huving orders appeared and ths
decline was checked.
The action Of the market in the strong
undertone told story of proper tram
ing and it's reserve forces. Like an ath-
Lotto who has been preparing for severe
t.et the market exhibited that recuper-
ative strength which would seem 10 ID
d,cats that it's force for the present mo-
nent has not been spent.
The report OF the Steel Corporation lot
the March quarter is certainly DISMAL
students Of the Steel situation naturally
knew that most Of the business turned
out nv the mills during the early period
NJ 1912 had been booked around inc low
os+ nrices Of the season, but the total OF
,,,eTsd orders on December 81 was
ohout o. per cent larger than the month
nrevious and 40 per cent greater IMAM
at the opening OF the December quar-
ter. 1t hardly seemed possible thaI net
earnings could have decreased so CREAMY
in the three months ended with March'
The fall off. however, as compared with
,ba preceding quarter, is S6.2OO,Oco, or
YEARLY n per cent. Furthermore, the
s17 800 900 Of net earnings OF the las,
quarter. except in two instances are the
smallest Of any quarter perlod IN the
Steel Corporations history. Between
santember. 1908, and April. 1914, ana
the first three months of 1894 are inc
two exceptions.
In the first quarter of 1904 the com
panv's earnings touched their lowest
noint the net receipts being Sl3,2oo'ooo'
&C conpared with the SIT, 100000 Of the
quarter Just given. Since the hrst quar-
ter Of 1904 the company's f1xed charges
have Increased S2,60O,00O quarterly. and
Il &c paving out S6,30OCoO in quarterly
ai,,;dsnds on it's common stock, which
d,yidends the company is continuing
while in the three months OF l'Vt 'n'
dividends were discontinued.
The present situation is that the DER
icit after paying dividends in l9o4' was
s1 S57 900, while now It Is S6.292'ooo 10Y
tho CORRESPONDING quarter Of l9l2.
If seen from a purely economic point
of view the present report is very alarm
ing The general updertone or reporteu
Improvement in the steel business no"
aver and the moderate recovery In steel
nrices recently have made an improve
mont in industrial conditions The final
adjustment of government and political
Influences, which may be expected %
cease at the end of this year. VIII PROB
ably bring about a revival OF the stee
trade. which, it is hoped. will bring back
the earnings Of the corporation 10
more satisfactory basis.
In 1910, when the management fixed
the highest dividend rate on record Tor
the common stock, the general intima-
ton was that no change in this dividend
was to be expected in the future, except
perhaps, in the form of an extra divi-
dend This much Is given for what 1t
may be worth. That the company will
be able to show continued Improvement
from this time on is the wish OF stock
holders.
Other factors in the market though
apparently not so important were the
result of the Massachusetts primaries
the agreement of the railway managers
10. f.,