Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-05-12
Steel Center Of Reaction.

SSSSSSSASA4s
United States Steel stock has not un-
naturally been the center In the reac-
ton upsetting the whole market. From
the high price Of about a. week ago to
the low figure touched this week,
there was shown a decline something
like ten points-this memorandum not
In itself conveying much that is con-
sequential, perhaps. though 1t means
a loss in market value in a single week
Of $50 100000. Even in an age grown
callous in the consideration of big
figures sudden fluctuations like these
have undoubted consequence beyond
the mere confines OF the stock ex-
change. United States Steel shares
are owned by the public to q larger
extent than is any other American
averaging some 100000 per day is
more than text for academic considera-
ton.
In current steel trust developments
is variety of factors accounted con-
sequential. The official report of earn
ings last issued was not encouraging.
We had heard much of increasing busi-
ness and the maintenance of prices,
exhibit finally making clear beyond
peradventure that common stock divi-
dends paid were not earned. This un-
comfortable disclosure Offset was met
amiably by. the declaration that the
quoted statistics had to do with past
history only. that what was ahead
would show inspiriting betterment
But there has since come along the in
QUESTION OF the government through
which are disclosed strange elements,
incompatible with the theory that in
vestors have been almost reliEiously
holding that in the United States Steel
Corporation We have open account
ing. the square deal absolutely. Fake
IN he
ment. official records burned-such al
legations (under oath) have proved
disconcerting. have upset the con-
fdence even Of the managers Of bull
pools in the stock market.
Quick Rise in Steel.
Early this year steel common shares
sold at 60-which also was their low
price last year-from which point late
ly they had a quick rise of virtually
rs points-approximat half of that
being since lost. The record as it thus
stands is not encouraging to holders
Of the stock. does not tempt buyers.
Yet the fact is that almost any minute
We may have announcements which
will completely overcome any pessi-
mism that has accumulated in this
particular quarter-for the United
States Steel Corporation is not only
the biggest OF all our national bust
ness enterprises, out there are undiS-
closed assets. undisclosed earning capac-
titles. whose Importance can become
not only effective but marketwise dom
mating. Thus. though the outlook for
steel at the moment is not cheerful
from any professional Wall street
view. I personally believe that they
who have the courage to buy now,
while all the talent Is adverse. will be
advantaged largely-soon.
In United States Steel the entire ma
tional industrial situation Is on trial. II
the steel management, the steel record,
the steel prospect. cannot be trusted.
what American business interest can be ?
The depression side Of the market has
been helped by bad weather. notion
which may be smiled at by philosophic
folks; but the fact is that in Wall street
there is sensitiveness to such an extent
| that a cloudy day not infrequently means
a cloudy market-this emphasized by the
| old-time maxim attributed to Uncle
Danl Drew that when sunshine begins
to beam and the sap begins to rise the
market is bound to be sunshiny and
prices go up. too.