Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-05-12
Steel Mills Are Busy.

There Is found IN the manufacturing
and financial centers that same wide d.
version of opinion as to present condi-
lions and outlook for steel and copper
both their products and stocks The
steel mills are doing more than ever be-
fore on record, and Pittsburgh, Chicago
and New York continue to send out an
nouncements every few days OF advances
in the price of goods. Consumers say
they have no difficulty in placing orders
at the old figures, and that the marking
up process Is a deception intended for
effect upon the public, and particularly
that part of the public which deals In IN
dustrtal shares. Wall street Is in grave
doubt as to which side to believe. AS be-
tween the two, II leans to the idea that
the steel makers are doing little BLUM
ing. and that the facts do not JUSTIFY the
claims that are being made that within
the next few weeks net earnings Will
have increased very substantially as a
result of the higher prices obtained. One
authority is quoted as predicting that
within ninety days the steel trust Will De
earning at the rate of at lease $50. 100000
a wear more than at present, and also
that the independents will be sharing In
the improved conditions These claims;
together with the fact that they are well
supported in the stock market, have their
effect on speculative sentiment.
At the same time. there is a hard
headed and irreconcilable element In
Wall street infexibly opposed to the
theory of borrowing money to pay
dividends. either by direct issue OF new
bonds or by digging into treasury re-
serves. They think the policy Is un-
sound and Is unwarranted gambling
with the funds of the corporation.
They insist that the management of a
corporation has no more right to bet
the company's surplus by paying un-
earned dividends than II would to
stake the sum on the throw of the dice.
a. th2 lfxvn a0ft
as old-fashioned and out Of date. They
belong to the era before George w.
Perkins and Judge Gary abolished
competition. Them was good old
days" but not In harmony with ad-
vanced views OF corporation manage
ment now.
The street has become Injured to the
troubles of various groups of labor
union men in trying to compel ad-
vances in wages. Riots in the coal re-
9ions. demands upon the railroads by
locomotive firemen. supplemental to
those made by the engineers. and
threatened strikes in other lines OF in
dustry are only referred to casually
these days. The tremendous losses
that have befallen the people of the
lower Mississippi valley are not as yet
appreciated in the east. True. the
stock market took little fling at Illi-
nois Central. but IL Is fashioned to
waIlop that poor stock when the oc-
casion is inviting. The actual damage
to Illinois Central lines down to-
ward New Orleans was only looked
upon as an excuse. II that had not
been in sight something else would
have done just as well for the ham
mer throwers on the exchange.
Copper Report Disappointing.
The monthly exhibit put out by the
Copper Association was disappointing
to the populace. although insiders tried
10 create the impression that every
thing was lovely. The report shows
an increase of 100000 pounds on the
month. a decrease of $500 900 pounds
in exports and domestic production
of 125.0o0.0o0 pounds. The temptation
TO produce the metal while the price
is around Is cents Is too strong to be
resisted.
The sac of ss5, 600 600 In New York
city bonds has not excited enthusiasm
The issue bears ~ per cent interest and