New-York tribune., 1909-09-23
FINANCIAL MARKETS
STOCK PRICES DOWN.
Reading and Union Pacific Lead the
Decline-MOney and Sterling
Rates Firm.

Stocks were weak in the best part of the day
under the influence of liquidation and profess
siOnal pressure against prices The general
character of the trading suggested the presence
in the Street of powerful bear party
than any reported in recent weeks. and reflected
unWillingness on the part of the larger interests
TO support the market i'll the face of liquidation
that heavy enough to make marked
impression upon quotations. There has been
large distribution of stocks the recent ad
vances. and it is not unlikely that the big mon
of the Street will welcome lower range, while
il is possible that they are working with that
object in view in order to reaCcumulate lines Of
attractive issues that eventually should sell at
somewhat higher levels. The approach of a
period of stronger money rates warrants opcr-
ations for the decline, hut there are many bulls
who continue to assert that prices will advance
irrespective of money market conditions. and
they account for yesterdays decline the basis
of natural reaction This may he the correct
view TO take 1t is possible that the downward
movement merely incident of bull
market. but il is safe to predict that in the
event Of persistent operations for the rise at
this particular time speculation will run into
snag at no distant period. In the early after
noon prices showed some strength, following
decided weakness in the morning, though in the
late dealings renewed operations for the de-
cljne carried quotat atoms 10 the lowest of the day
with net losses Of from to points in many
active shares. Reading and Union Pacific suf-
fering the most. Buying Of the United States
steel stocks came from better sources than
ported in the larger number of issues. and i'm
the early trading both the common and pre-
feTTed made high record prices. the com
mon selling at SSll and the preferred at 129$.
closing however, AT fractional losses. steel
common dealt in TO the extent Of more than
100000 shares, and with Reading and Union Pa
cihc supplied more than onc-haIf Of the total
transactions i'm all issues y large amount of
steel common was taken for London account
though it thought that much Of the foreign
buying orders from New York for effect
upon the market. Lehgh Valley was again =
weak feature in the Philadelphia market losing
points on speculative liquidation.
While the larger number of stocks arc selling
at levels that do not encourage investment buy
ing. there some issues that are attractive
purchases At their prevailing quotations, in
Guiding certain non-dividend paying shares as
for instance Southern Railway preferred and
Missouri Pacific which, pointed out in this
column Yesterday. doubtless will be restored to
tie dividend class in 1910 OF the stocks that
are paying dividends and which quoted on
a basis that represents an excellent investment
return United States Steel preferred United
States Rubber first preferred and American Tel
epnonc ana Tel graph stand prc-emincnt. The
last named stock apparently is being bought by
people who govern their purchases by income
return and statements Of earnings. This issue
pays per cent, yet il is @eling under many
securities that make smaller dividend dishurSe-
mentS. the discrepancy i'm its market value
compared with stocks that possess no greater
intrinsic worth being due, doubt. to A lack
Of knowledge concerning the strong position uf
the American Telephone and Telegraph Com
pany anG - ignorance regarding the persistent
attacks of independent telphone companies
which see,, 10 question the credibility of the
corporations earnings The American Tele-
phone and Telegraph Company is not overcap-
talZed its earnings are not. certain Competi-
tors aver. padded and its subsidiary properties
are not losing money. Its financial reports cag.
titled by trustworthy accountants show an anor-
NOUS earning power that must increase as gen
eral business, which is now dependent upon
the telephone service expands. and any who
cares 10 make a careful analysis Of the concerns
operations as shown by its reports cannot fail
to reach the conclusion that its stock is a safe
investment and is cheap at it's current price
At 142 this issue paying per cent compares
with Southern Pacific, per cent stock, at 13l.
while il sells under Pennsylvania, also a q per
cent stock. Canadian Pacific sells at 1872 St
Paul 100, Northwest 1872 General Electric l67,
Illinois Central 1873. Northern Pacific I55 and
Great Northern l'l3. The stocks just named
are per cent securities. ana the permanency
of their dividends appears no more assured than
that of American Telephone and Telegraph And
the same comparison may be extended To United
Stetes Steel pref -rred and United States Rub
Der first preferred
Money rates were unchanged yesterday. Do
mestic exchange moved against New York. while
II. spite of a fair offering of bankers loan bills
and the relative case OF money quotations there
WAS no indication of a material weak ming in
the local sterling market. Discounts abroad are
and q.