The Washington herald., 1913-10-07
STEEL LEADER
Of Big SLUMP
Fear of German Competition,
Lower Prices on Products,
and Bear Raids.
LOCAL STOCKS VERY FIRM
Railway Common and Capital Trac-
tiOn Higher-Overslaying Tariff
Scare on Steel.
By 1. A. FLEMING.


sistent, and consistent sellers of the
stock market. At the opening every
body had an order TO sell Steel COM
mon, and to add to the pressure. Lon
don and other foreign SPECTATORS took
flyer in the American market, selling
Steel common as the mark for the day.
The one string upon which the bears
played and harped all along was Ger
man competition in the home market
as result Of the reductions in the tariff,
and the tune did not please the friends
of American industry. although the gen
eral impression was that the chorus was
entirely too well trained and the volume
OF bear sounC on German competition ell
tirely too great for the rumor smothere-,
facts.
Our English friends also disposed OF
much Canadian Pacific in the general
slaughter and decided that Reading and
Union Pacific were also good selling
propositions.
That this weakness was further in
tensifed by New Haven's plight. by the
sage manner in which Union Pacific is
hanging on to its millions, and by re-
ports OF sluggishness in business.
Railroad earnings continue to show
steady decreasing earnings. at variance
with laboTs attitude in demanding in
creased wages, for the railroads plight
Is nothing to us-we are not sharers of
profits or adversely"
VIII Confer with NIcUeynOIds.
President Elliot, of the New Haven,
assuming the reins mid difficulties stu
pendous. has decided that he will have
no lawsuits with the Government
When told that il was reported that the
New Haven people proposed to advise
with him for the purpose OF indicating
willingness on their part to take steps
TO comply with the law, Attorney Gen
eraI McReynolds said that he would be
very glad to see them.
He was asked if such action would hold
up or stop the proposed suit against the
road. He replied that if the Department
of Justice could get what it wanted with
out having to enter suit he could see
no reason for bringing any.
Attorney General McReynolds also said
that he had in mind a special attorney
to conduct the suit against the Southern
Pacific. which will be brought to make
the road disgorge its Central Pacific
holdings, but that he was not certain
that he could secure the services of the
man he had in view. and for that rea-
son would not give his name.
LOSSES.
Naturally with such. persistent and
rather vicious selling values actually
melted, nor was the covering which us
ually attends the last few minutes of
llt StsHlOI Ol SNlilltlelll Importance 10
more than put on brakes, with a rally
that was little better than noticeable.
Steel was pounded all day, and the
perterTed weakened with the common.
New lows were made on both stocks.
the common at &c, and the preferred at
los 81, net losses since Saturday of l 81
on the common, and Is on the preferred.
From the low there was measly little
rally of Lass of a point, on some pro-
ht taking.
Union Pacific sold off to 1G7, a loss
of 81. and rallied the average SIS in
the last few minutes. Reading lost l 5-S
with IS actual loss at the close, while
Nipper, Louisville and Nashville. Atchi-
son, and a few minor stocks lost 1-2
point
Peoples Gas, Illinois Central Chino
Copper. Can preferred, Great Northern
Ore, and Mexican Petroleum. lost SAL Il |
LigEett & Myers tobacco 3l-2 of. St
Paul is, Western Union >, and Copper
a point lower.
The honor stocks on the entire list
We're Republic Iron and Steel preferred, |
with a point advance in the midst of
weakness and Baltimore and Ohio, with |
good strength.
oVerpIayinE the Game.
The general opinion is that the bears !
are overplaying their game; that the !
in industrial enterprise have been ex-
sggerated; that German or other manu- |
facturers will find the American market |
prefeTrinE home industry. other things |
being near equal, although the example |
Of the government iu giving contracts !
abroad for the navy, might not sustain |
this suggestion.
No Cause for Scare.
An independent steel manufacturer. who |
is recognized as one OF the best authorI-
ties on the steel industry, in an interview
Endorses this view.
This manufacturer says that he does
not share wholly the views reported to
have been expressed by Mr.. Schwab,
on the contrary that he is less disturbed
over the prospects of foreign COMPETE
ton that he is over competition at home
Furthermore, that while Germany is the
most important producer of steel abroad.
YET her total output is less than one-half
that of the United States. As Germany
consumes at home about one-half of her
production, the amount available for ex-
port, even If all was shipped to the
United States, would be less than 3 Der
cent of our requirements here. II is
not, however, at all likely that Germany
would prefer our markets to the exclL-
sion of her old and established foreign |
trade, as the United States market could
not be obtained except at a tremendous
sacrifice in German profits, first because
TO enter this market would mean sales
by Germany at substantially cost and
the abandonment OF Germany's old trade
at remunerative rates. |,
This manufacturer further states that
in his opinion the principal effect of the
new tariff bill will be to bring domestic
markets in much closer relationship with
the markets of the world, and that ul-
timately stability to the values of domes-
tic steel products will obtain in this mar
ket, wide. fluctuations will be MAIN
tained under a low tariff
As a suggestion of the influence on
home markets by German and Belgium ,
competition, when the new law becomes
elective, this Independent manufacturer !
stated that with current prices at Ant
Werp on the principal products, struc- /
tural shapes, plates and bars for export |
quotable at approximately / cent per
pound nat; at this price. If there is add
ca the Underwood duty. freight, insur-
aEce' and other charges. the approximate =
cost delivered New York would be 81. 80 n
pc. hundred. which price. with rail q
lreight rates from Pittsburgh to New d
ORR deducted, would net the Pittsburgh n
Hits about S.l2 per hundred. but this q
rate would be extreme and not probable,
IS domestic consumers would prefer 20 :;