The Washington herald., 1912-02-01
WALL STREET NEWS
General Decline in Market Without
Cause Satisfactory to Street.
Steel Report Good.
BY THOMAS c. sHoTwEI.L.

New York, Jan. S.-Knowing that the
Steel Corporation would file Its answer
TO the dissolution suit begun by the Eoy-
eminent before the stock exchange would
be doing business again. traders attacked
Steel in the market to-day and caused
a decline OF more than four points. This
severe break left the stock under 50 and
demoraliZed the entire list. Union Pacific
kept company with Steel on the way
down, but little attention waS paid to
other stocks except Reading and New
York Central, both of which were firm
most of the session.
The reason the steel trust answer was
used for an argumest for selling stocks
was that Il would disclose the very best
argument that could be made in favor
of the trust, so that any new develop
ments must necessarily be of weaken
ing character. The argument originally
and exclusively advanced in this column
in behalf of the steel trust, that IL
crime has been committed the govern
ment is a partner in that crime, because
Il stood idly by for ten years without
making the slightest objection. has been
made the chief argument OF the trust
lawyers in answering the government.
Although the market moved chiefly on
theories, the steel trust report for the
December quarter made many persons
sell. They called attention to the fact
that the company figured out how much
money II would reed for dividends be-
fore It wrote of anything at all for
depreciation. The management defends
the small amount written OF for depre-
Ciatlon on the ground that the building
OF the Gary plant has more than made
up any possible deterioration. The Gary
plant is not to be capitalized. The trust
Is now running a larger percentage OF
mill capacity and is getting slightly bet
ter prices than il got in the December
Quarter. - Owing to the remarkable
growth of its export business, the De-
Cember quarter is expected to be the
smallest for several years TO come.
And. besides. the fact must not be
overlooked that although prices were
cut so sharply that some of the inde-
pendents were not able to earn their
dividends, the steel trust made enough
TO pay its fixed charges and dividends.
Strength of Ceading and New York
Central is due very largely to the threat
fncd strike of coal miners. Manufactur-
ing concerns that have taken a large
volume of orders. being fearful OF en-
harra sSment sho' Id such a strike be de-
cIsred, are buying coal as never before.
One OF the sad developments Of to-day
over which Wall street did not shed
many tears was the announcement by
President Sidney W. Winslow. of the
United Shoe rlchinery Company. that
Louis d Brandeis neglected to dispose
Of his stock in the United Shoe Machin-
cry Company until after he had been
retained by the Shoe Manufacturers Al
lance. and until after his clients had
taken measures to bring about prose-
Cution of the company. announcement OF
which would be likely TO lower the value
OF his lock
Mr.. Brandeis will undoubtedly answer
accusation OF thrift. and. perhaps, at
the same time he will explain that his
lectures on scientific management were
inspired by knowledge Of what E. H
Hartman had been practicing for half
a dozen years in the Union Pacific Rail
road system before Mr.. Brandeis star
tied the public by telling it how 10 lay
bricks.