The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-02-01
MS CONE HARD
On Steel STOCK
cACsH FoUn roisr DECLINE AND
DENoRALixEs THE EN-
TIRE LIST.
COAL ROADS STRONG
zOnAcCO AND OIL STOCKS Now
WORTH FAR MORE THAN
nErOKE THE COURT
DISSOLVED THEM.
coal ROADS STRONG
g. THOMAS c. sHoTWELL.

E54N NJ " 1onh. Jafl DIN Uo he ~NNNs
tke sserl Corporation would ME It's
answer To the dissolution suit begun
II by the government before the stock
ExchanRe would be dong business
again. traders attacked steel IN the
market toaay. and caused decline oi
more than four points. This severe
break left the stock under sixty anu
demoraiixed the entire list. Union Pa
cinc kept company with steel on the
way Gown. but little attention was
paid to other stocks except Reading
and New FORK Central, both OF which
were firm, n1osf of the session.
The argument originally and eXelu-
sivcly advanced In this column in
behalf OF the Steel Trust that IL
CRIME has been committed the govern
lnent 10 Il partner in that crime be-
cause Ii 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, The trust also eInpha-
sizes tire Importance NJ its work IN
extending the foreign commerce Of the
United States. Aside from these two
points, it does not appear that the
trust has advanced anything to
strengthen its position. These two
points. however. Should be sumclent
70 compel the government To settle the
case out OF court at least.
Must Reverse Himself.
one point made by the bear party
in this connection is that Richard V.
Idndabur,, who Will be chief counsel
Tor the Steel Corporation. In this suit,
is understood to have argued In the
t'hancery Court In New Jersey In 1904.
along lines exactly contrary to those
ne must adopt In defending tho trust.
Furthermore. Attorney General Wick
arxhan who has charge Of the case OF
The government, he's on several coca
ssolts highly commended many points
in the New Jersey corporation act
which he will he compelled To attack
in this litigation. The litigation Is
{. hopeless muddle. IL was started FOR
political purposes and will be prose-
ttited with much blnst.r. SO that no.
i,ouy will be atie to tell which eide
N going to win until after The prcsi-
gcntiad election.
Although the market moved chiefly
ON theories the Steel Trust report for
the December quarter made many per-
sons sell. They called attention To
tho fact that the company figured out
how much money IL would need for
dividends before ii wrote OF any
thing ut all for deprsciafnM. The
management defends the small amount
written OF for depreciation on the
ground that the building OF the Gary
plant has more than made up any
possible deterioration. The Gary plant
Id rot TO DO capitalized. This trust
Is now running a larger percentage Of
mill capacity and Is gettlns slight
ly better prices than II 20. In the
Lecefrber quarter. owing To tho re-
faarkahle growth of its export bisi-
aess the December quarter lis expected
10 be the smallest for several years
10 tome.
A..
overlooked that although prices were
cut 30 sharply that some of the indie
pendents were not able to earn their
aividenus, the steel Trust did make
enough to pay all of Its fixed charges
and dividends,
Coal Roads are Strongs-
Strength OF Reading and New York
Central Is due very largely to the
threatened stIike OF coal miners. Man
ufacturing concerns that have taken
large volume OF orders. being fear
ful OF embarrassment should such q
strike ne declared. are buying coal
an never before. The coal roads are
overwhelmed with business. Their
earnings for the first quarter Of 1912
should be record breakers. Action OF
consumers in laying up great quanti-
ties OF coal In advance, will undoubt-
eddy prevent q strike altogether for
III consumers cannot be embarrassed
bs a closing down OF the mines. the
coal companies viii be able to hold
!. the men OF indefinitely. Besides pub
lie sentiment " not in favor OF labor
strikes this year.
Tobacco stocks were comparatively
steady. Although the court has for
hidden the leading defendants buying
shares Of the principal companies II
is understood that lhese defendants
have not discouraged intimate finan-
ciai friends from picking UP the stocks
in question. Ono point the court over
looks IL that the management Of all
these companies having been identical
for. many years. the management OF
each ut the companies is now In pos
session Of all the trade secrets OF its
sSaa ;s,s- TT:sss< l. HsuSstsssss thssi
the court cannot rule out OF exist
euCe.
Advance Of gasoline TO q price two
cents above that paid by the public
last year 10 another pleasant SURPRISE
tor trust busters. The tobacco and
oil cases have proved that the only
individuals that gain anything from
1 trust busting are those patriots who
market deals. The fragments OF the
oil and tobacco trusts have a public
market higher than the. prices Of the
7 pMrent HtOtks before disso1ution. SO
II will be with steel. The public gets
Yhe privilege Of paying more broker
age and higher prices for products.
Victory Of the government in the coal
anthracite ~ per ton at'least.
One Of the rad developments Of to-
day over which Wall street did not
shed many tears was the announce
ment BY Preaident Sidney w. Wtnsiow,
y ~ the United Shoe Machinery Com