New-York tribune., 1908-09-17
FINANCIAL AFFAIRS
STOCK VALUES LOWER.
Hea0y Professional Selling Reported
Money Rates Easy and Foreign
Erchange Higher.

After an irregular opening followed by brfef
exhibition Of strength In the leading active is
sues the general market developed an uneven
movement of values that eliminated IN the last
hour of business in decided weakness IN all
parts Of the list losses at the close running
from to points in the prominent issues. The
decline was due to selling by the PROFESSIONAL
element, liquidation by commission house trad
ers who were alarmed over the manipulation
for lower prices by many operators who recent
ly were espoused to the bull side of the market
and by realizing sales by speculative holders
who doubtless thought the time ripe for con-
verting their paper profits into cash. Inc Iact
that Mr BRYAN was on his way TO this city en-
couraeed room traders to operate for lower quo
tations, their transactions being based on the
theory that an election could be proitaby
worked at this particular time. while the lack
Of inside support in the case of the shares which
for many weeks have been popular bull favor
ties also induced bear operations by the board
room element The Hartman stocks, including
Baltimore & Ohio and Erie. which are now
classed in the Hartman group, suffered mate
rial losses while American Locomotive, Ameri-
can Smelling. St. Paul. Consolidated Gas. Great
Northern Northern Pacific National Lead and
Reading sold well under the final figures of. the
preceding day. At the close the selling pressure
was as heavy as any time in the five hour
session. the only buying coming from traders
who were looking for stocks to even up their
books. Last prices. a rule, were at the poor
II,
ing apparently coming from accounts that had
overstayed the market. The entire movement
was wholly speculative in character. Money
was easy and further strength in sterling rates
reported.
Mr.. Harriman's statement that the so-called
Hartman stocks selling an advancing
price level because they ought not to have
been so weak before" may not encourage specu-
lators who have been looking for some startling
announcement regarding plans for future financ-
ing Of the Union Pacific. the Southern Pacific
and the Central Pacific, but it will appeal to
legitimate owners of the stocks of the companies
named and suggest TO them that while specula-
tive movements based money troubles may
carry quotations for good stocks below their
actual worth the ultimate Of the market
values of such issues must be lines dictated
by the real worth of the security. Union Pacific
still is selling under the level warranted by its
dividend of 10 per cent while the same thing
may be said Of Southern Pacific Union Pa
cif1c is entitled to advance that will place 1t
upon a per cent income yield. also Southern
Pacific; but in view Of the aggressive bull spec
ulation that has been under way In the last few
weeks which naturally has weakened technical
market conditions these issues in company
with the entire list, may seek temporary lower
range before material Improvement can be
brought about.
The weakness in the Hill shares is worrying
certain sections of the Street but from what
can be learned in well informed quarters the
decline in Great Northern, Northern Pac1nC an0
the Great Northern Ore certificates is not due to
factors affecting the financial position of the
companies, but TO forced liquidation by interests
who need the money more than they do the
stocks. Talk of dividend reduction on Great
Northern stock is heard in speculative circles.
Bear traders who have been opposed to the ad
vance in prices in the last few weeks and who
have been well trounced by the advocates of
higher values talking lower dividends for
many issues. and they working overtime in
their efforts to frighten investors. Stocks have
advanced in the greater number of instances to
a level that ought to suggest caution on the part
of traders who operate on borrowed money but
there is nothing in the position of the market
that need alarm actual investors.
Good buying of railway mortgage issues is
ported by the bond houses and there also is
ported active demand for bonds of semi
speculative character. Most railway bonds
cheap at present prices. but it is conceivable
that in the course of the next few months there
will be a change in quotations and In money
rates large enough TO place the bond market on
a level that will not appear particularly at
tractive TO investors. There many good
reasons why bonds should be bought at current
Ofa. .snraS