The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-03-28
MORGAN HANDED
MARKET A DROP
s1EEI CoRroR ALTON SOLD riNAN-
CHER sao.see. eee or FER
CENT. bonds At ss.
I ATTACK STEEL SHARES
oE:LJENED THAT STANDARD OIL.
HAS sTRtCk NEW FIELD
FOR PROFITABLE IN
xEsTMENTs.
ATTACK STEEL SHARES
~ THOMAS c. sHoTwELL.


u aireaay in new territory. when the
St.si Corporation announced mat II
had soiu sSu,avt,ouu OF per cent
boncs TO ]. H. morgan company
q at aeoUt aS. -s..--.-..... -.. --.- |
Free selling OF all kinds Of stocks
WIS began at once with the iesui,
that the market had The reaction
everybody has been expecting for
week.
The FINAL prices were more than a
4 ppiut below the best figures of the
day.
The short selling was large, for pro-
fcssinrals had taken their PROFITS on
the long siov OF the market early In
the week, and had been playing for
= turn.
Scores Of customers were in COM
mission houses, about the street, wait
Ing for The decline and stocks were
well purchased in the last hour.
White the end of the rise is freely
predicted there was nothing in the
action of the list TO indicate more
than a norma! reaction. The good
news was too abunuant for Wall
Street.
Overwhelming defeat OF Roosevelt
and ESCAPE Of the Chicago packers
were the two things considered most
favorable TO business In general. An
nouncenent that the British coal mine
operators haa formally accepted the
minimum wage bill WAS another favor
nbie influence.
The market. the last month, has
been too important and the public
Il interest aroused in II has been too
widespread to make II desirable to
abandon the campaign.
IL does not matter what interest Is
responsible for the advance. II has
proved that conditions have changed
for the better. and therefore resump-
tson OF the advance must be expect
ed.
Attack on Steel Shares.
Steel shares were the center of at
tack after the bond issue was an
nounced. That bond issue was
planned months ago. and 1t took none
Of the important people by surprise.
Opposing views of the issue were
expressed In high quarters.
The optinists called attention to
the fact that the trust had expended
more than s4l0aoo. 900. out of earnings
for Improvement since organization:
that Ii had. according TO the govern
ment department OF corporations.
written of fully $50, 900. 900 too much
Tor depreciation; that 1t was no bear
argument for Il company to have so
much work on hand To demand
Sl7,o00,o0o more working capital and.
finally that 800 900 Is not worth
considering IN connection with Bill
ion ana "a NAH -uoiIhr COTpOfatlOH
The pessimists sold and said that
the bankers had been handed rich
plum In a first mortgage bond at IS
when steel sinking fund bonds, which
come after those OF today were selling
at 1903; that this meant the corpora
ton was down to the $25,o00.0o0 cash
working capital paid in at the time
of organization, that the trust had
now borrowed more than 100000. 900
in the last fifteen months indicating
"A condition OF distress regarding the
common dividends, and that tho loan
was taken because the earnings for
this quarter viii be shock to the
public.
Higher Prices Recorded.
Higher prices were recorded by is
sues that had distinct reasons for
advancing.
Canadian Pacific moved higher. fol-
lowing a statement by one of it's vice.
presidents that land prices would
be raised and that he expected 2oo..
900 farmers to cross from the United
States into Canada this season.
Pacific Mail advanced. because III.
public Is beginning to realize what
the Panama canal will mean to the
Pacific coast. and to that company
Mercantile Marine stocks and bonds
are beng accumulated for the sam.
reason.
Beet Sugar and Rubber went ahead
N IeT the same ola reasons OF very
large earnings.
Strength OF Missouri Pacific at
tracted much attention, and many
old rumors were revived. The Street
seems to expect an alliance between
the Gould system and one OF tn,
old railroads of the East
The advance of Ore certificates was
not explained but may be due to tn.
known fact thnt there Is q nool work
ing In the s;osk---
Westinghouse made new high
record on q antck ran: from u Ia 4,
SIT II Ten back to rs i-2. and.
after the close. dividend OF I pc,
cent. was announced on the stock
General Electric was also a stron
issue.
The advance OF Southern Pacific
wns due to the same thing that ali
vanced Pacific Mail. 1t only con-
trolls that steamship line. but 1t con-
trolls the coast OF California, Oregon
and Washington. and VIII reap the
richest rewards from the governs
msnt's work al Panama.
II -5 As Copper High Enough.
Reaction in the conper shares and
nmeiters was natural. after such a
violent rise as they have had. Be-
sides. sfnelters was attacked in Con-
gress
The Street believes copper metal
II AZ high as 1t should be permitted
10 70, If the producers do not want
10 invite trouble from the govern
ment.
An increase Of output and eight
gan In surplus stocks OF metal Is ex-
pected.
z3 II 10 not expected that the price
Of metal will fall under fifteen cents
for long time and. therefore, many
dividend increases are expected In the
copper list, for they are all making
handsome profts.
OIL stocks received some attention
because OF report that new oil
heid. so by $50 miles In extent. had
been discovered In Ohio. As the
Standard Oil would be the chief
Beneficiary Of such find II Is prob
Hbiy true. for there seems to be a
nsyrferfous influence faeoring every
4 II M good for that company
Stocks of the Standard Oil GROUP
we.e strong today. One report was
thai the South Pennsylvania OH Com
Jary would increase Its caDttal from
az % 50A, 600 to 4i5.000.0O0. giving the
new shares 10 IL stockholders ~
4 b0nrs The stock sells at $50 share.
Al one time today Standard on. Of
Il Kentscky, which Was selling NJ SIS
+ about two months ago. Wac not Of
II Jared under $47S. ~
Possibilities of 3 coal strike are
sas - ~fn