The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-01-28
SHARP BREAK IN
STEEL IS FEATURE
PASSING OF DIVIDEND SHOCK
TO SECURITIES MARKET,
CAUSING SLUMP.
SELL STEEL ON CURB
DEALINGS TRANSFERRED FROM
STOCK EXCHANGE, WHERE MINI
MUM PRICE RESTRICTED FREE
SALES AT BARGAIN PRICES.

SALES AT BARGAIN PRICES.
New York Jan. 2T--In the passing
OF the United States Steel Corpora
tions dividend, which was announced
overnight. Wall Street had today the
first piece of influential bs 4 news with
which the stock market had had 10
contend since the beginning Of the
January rise
The advancing movement Rad AL
ready been carried as far In tsle past
few weeks as the most extreme eN-
tent Of 81 y rise at this season
Even allowing fer the unprecedented
conditions which suggest that more
sustained irrT royement in quoted val
ues IS possible this winter than If
ruatomary, the share lie. was IN
dou htedly N position 70 reflect the
Steel divldsa6 action, which, although
.se-oaghsy JUSTIFIED by the trade situa-
ticn. had hardy beer expected. The
c,rseo 3ezcas was a sharp fall in stocks
ali around ranging from Two Ia three
points "a -sa1y &ctive issues. There
we-e ia-aGxscz. tire day conspicuous
ex-e-sses-s among spec.sit}es such as
Ths-5 a~w-Es American Sugar Rein
&rx Ai-a<r- ~ Reef s. gar. and Sears
Esee ssses szE gNs prevailing course of
cZnas s4--x -ss &3w- ward- ON the
wN~3s - --z-xss gaze a satisfactory
gr~sE-e - ssSs G~Ger the 'sturbinS
t@s* x--ae- e. Ase2Eh allowance has
to - -&2@ - tA1s$ that +. was free
srpr~ tNa 1-~eszces which might have
s.rrzr&+%s1 %~-1 heavy downward sell
ing gs tie Szees shares on he board.
Ssva 70 x~rae t-1sseullCe Mt trans
actions tAe' STOCK exchanss furnished
Ia Tea7
ings In whlch for t.1e day were trans
serr~d 20 the new street curb market,
revived for the occasion as soon as 1t
appeared that tens Of thousands Of
shares % the stock were offering for
sale or thu scor al he minimum price
o. forty eight. The break IN the Steel
preferred shares WAS enough 10 show
s.ae kird Of trading that would have
gone on II. steel had there been no
organized market restrictions In the
street dealings in prices under forty
10 were reported so that there was
surprise when. after the close Of
S. tha stock exchange super
.1s ~ 5u7rfStea covered the official
Steel minimum TO forty-three
,...tH iFett Temporary.
Is az rot this viii suffice TO
sn stock exchange market
fs. StE@s at '9e moment is debatable,
but there lie a peculiar and special
situation here which tho stock ex-
change authorities do well 10 meet AS
best they can. IT is desirable that the
eaGiu4tpsent of The Stee, posi- son be
es"N.el the regular and organized
market as srss ally as possible, 80
Il - securities A., a whole - l. as the
say9rg g9e&, freak away" :roIn H.
Ttasrt Is every eason 10 bee 20 r'nt
hAt xxf{{t RI n account oil
monetary. and other factors making
for ujtima,s improvement in general
business stock OF such ponderous
gravity as United States Steel can
hardly seek a new low level without
having an incidentally unsettling gen
erai effect for the time being. but II
ls quite conceivable that tho effects IN
shis particular case will be only tenn
crnry
Forces Mt work For Improvement.
IL cannot fairly be said that the
-eFt44ss4et.-.4t tbs dividend on the Size
shares has relation only to the un-
"a tisss.tory year which has Just closed
in tie steel trade. AS a matter Of
fact The passing of the dividend is g
commentary on the inn y 'ate
prospect in basic industry whlcn is
s.iii 81 hat Disappointing. Never
ihetess. forces are at WORK fAr m
81 avrrneat ane nowhere Is has more
ciea~ly reaiizf d than in WA Stree
: whieS, sees what vast amounts IF cap
.tai are se"ajng investment and VIVA
still larger amounts of credit or h3nh
lending power awaits employment. A
large straw which shows how the vino
is blowing is the prompt Response
made to the sale by the Pennsylvania
Railroad, of $4,000. 200 nf 4 - PEI
zen. first mortgage bonds, closing the
mortgage under which they are issued
Trading which began on ree Broad
Street curb IN these bonds, when is'
sued. carried their price uD today 10 a
little more than a 40 basis or within
a close approximation OF the level oil
xiIt-edged yield at which previous
bond Issues under the Sam, mortgage
are selling.
The other transactions IN stocks
would unquestionably have reached a
new aggregate -s!nce the reopening oil
a,e stock exchange had It not been for
She suspension OF regular dealings IN
steel shares. Business In bonds did
not expand proportionat4iy but the
investment market displayed p firm
tone
There was less pressure of foreign
Nouidation In securities than might
have been arprehended, although 1t
Is probable that selling from ahroa
may for a while he stimulated by the
steel dividend episode
Chicago, Jan. CIV heat--rp again
The July month made a further gain
against the May. reducing the diff
ference to rfteen cents. Offerings have
been iigh, both speculat'vely and for
country accounts. with the cash trade