The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-28
NEWS
AND COMMENT
Stock Market Upset by the Pass
ing Of the steel
Dividend.
NEW MINIMUM FOR STEEL

vest, rtlay the first piece OF influential bad
news with which the stock market had
had to contend since the beginning of
the January rise. The advancing move
meut had already been carried as far
in tho past few weeks as the most cx-
treme extent Of such a rise at this sea-
SON Even allowing for the Unprecedented
conditions which suggest that more
sustained Improvement in quoted values is
possible this winter han Is customary.
the share list was undoubtedly in q posi-
tiun to he upset 10y the steel dividend
action. which. although thoroughly justi-
ncd by the trade situation, had hardly
been expected The consequence was a
sharp fail In stock prices all around.
ranging from two TO three points In many
active issues
There were throughout the day con-
spicuous exceptions among specialties
such as Third Avenue, American Sugar
Refining. American Beet Sugar and
Sears Roebuct. hut the prevailing course
Of quotations was downward For the
most part tho average of low prices was
reached early In tho session ana toward
the close there was some upturn, appat-
entity on short covering plus the effect OF
some courageous speculative purchases for
FIf, long account, as we'll as investment
buying on the whole the market gave
a satisfactory account OF itself under the
disturbing test appli q, although allow
ance has to be made for the fact that
IL was free from the Influences which
might have emanated from heavy down
ward selling of the steel shares on the
board.
Save for some insignificant transac-
tious the stock Exchange furnished no
market for steel common. the dealings in
which for the day were transferred to the
New street curb market, revived Tor the
occasion as soon as II appeared that tens
Of thousands of shares OF the stock were
Offering for sale on the floor at the mimi
mum price Of As The break In the steel
preferred shares was enough to show the
kind of trading that would have gone on
I'm Steel had there been no organized mar
kct restrictions In the street dealings
prices under a were reported. so that
there was no surprise when att,r the
close of business. the Stock Exchange
supervisory committee lowered the official
steel minimum to 80.
Whether or not this viii suffice TO re-
establish Stock Exchange market for
steel at the moment is debatabie. but
there is "A peculiar and special situation
here which the Stock Exchange authori-
ties do well 20 meet as best they can. II
b. desirable that the readjustmcnt OF the
steel position be effected In the regular
aad organized market as speedily as pos
sible so that securities as a whole can
as the saying goes. break away from
H. There is every reason TO believe that
they will tend to do so on account OF the
monetary and other factors making for
ultimate Improvement in general business
\ stock OF such ponderous gravity as
United States Steel can hardly seek q
new low level without having an Incl
dentally unsettling general effect for the
. hntFt hut - ~ a. III
the effects In this particular case Will b'
only temporary.
II cannot fairly he said that the oms
sion Of the dividend on the Steel shares
has relation only to the unsatisfactory
year which has just closed in the Stec
trade. As a matter Of fact the passing
of ;hc dividend Is "A commentary on tn,
immediate prospect in basic industry
which is stlll somewhat disappointing
Nevertheless forces are at work for IN,
pr1Vemeut. and nowhere is this NOR,
clearly realized than in wall street, whic'
sees what vast amounts OF capital a-'
seeking investment and what s,ill larger
amounts OF credit or bank lending power
await employment.
4 very large straw which shows how
the wind is blowing is the prompt re
Spouse made to the sale by the Pcnnsyl
vauia Railroad OF Sig,OOO,OOO OF T.. pc
cent first mortgage bonds closing tn
mortgage under which they are issued
Trading which began on she Broad stree
curb in these bonds "wheu issued car
ried their price up yesterday TO litti
more than q 40 basis, or within clos
approximation Of the level Of gilt edge
| yield, at which previous bond issues undo
the same mortgage are selling,
Total transactions in stocks would un
qu, stionably have reached new agGre
gate since tho reopening Of the Stock Tx
change had II not been for the suspen
sion OF regular dealings in the Ste.
shares. Business In bonds did not eNpau'
proportionately, but tho investment mar
lct displayed q firm tone. The invest
ment situation is something which Wal
street Is bound to keep foremost In re
I gard. and the business community cOul
not do better than follow Its example
| Ideas generally about conditions Will b
| clarified by the unpleasant surprise Of al
/ interruption to the continuity Of rathe
l excessively bullsh sentiment lately, an
the prospect for financial and bushes
hetterment will not be damaged by a lit
tie timely reflection on difficulties whc
remain to be overcome.
There was less pressure OF fore!s1
liquidation i'm securities than might hav
been apprehended, although IL IL prob
able that selling from abroad may 70
while be stimulated by the Steel dividen
episode. The Stock Exchange has remove
the embargo on delayed deliveries O
stocks and bonds which will accommO
date foreign liquidation. but it is I'm
fercutial that expert opinion does not nov
regard the outlook for liquidation a
formidable The removal OF the embarC
win also facilitate short sales OF bond
but there is an implication here that FEY
spectators will be foolhardy enough I
venture on such operations against Tn
/ tide Of Investment demand
Banking interests. as Is evncod by IN
Pennsylvania bond sale, are engaged &C
lively i'm new financing undertakings an
the Erie Railroad Is preparing TO put on
some 6 per cent. bonds covering importar
portions OF It's main freight line. the pro
ceeds to he used to take up notes ma
turing this year Reports In circulatio
regarding the New York Central hnanci;
plan suggest that a novelty Is Conten,
plated something in the nature Of ten
porary per cent, debenture issue con
vertlble into Az per cent. refundin
bond.
In the days news budget there wa
included the very important news of Ge
manys assertion Of Government contr
over the food supplies of the nation. Tn
cannot fail TO have a bearing on n
neutral commerce controversies i'm whlC
Washington is Interested, and II may ha,
some significance AS to developments
the war wall Street attention was n.
much taken up however with matter
foreign or domestic unless they relate