New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-26
FINANCIAL AFFAIRS
HEAVY SELLING OF L. Il.
Hartman Shares Slump and Gen
eraL Market Weakens- Sterling
Rates Higher.

Stocks were heavily sold throughout the day,
especial pressure being reported in the Harri-
man issues and Reading, in which weak bull
accounts existed and against which professional
traders threw all their strength. reflection Of
the operation being presented m a maximum de-
cline by Union Pacific OF 5% points and by
Reading OF 3ls points In the general market
the tendency OF prices in the direction Of
lower levels. and while there were rallies after
the extensive liquidation OF the morning the clos
ing was unsettled and at net losses in all but
few issues. The trading element was bearish
because OF fits disappointment over the failure
Of Mr.. Hartman to confirm recent rumors re-
garding Union Pacific affairs: also because IL
is believed that this well known and popu-
lar railroad man would be compelled 10 take a
protracted rest from business cares. but the I'M
DERIVING cause Of the days sharp decline in quo
tations found I'm the fact that through the
recent reckless speculation an overextended bull
account had been created. which. though liqui-
dated in part in last weeks decline. was enough
Of factor to make the market vulnerable TO
speculative attacks Prices rallied from their
weakness OF last week short covering and
under the influence Of support extended at the
low points. though on the advance buyers who
had bought the decline. took their profits. and
with the completion of the covering movement
stocks again became attractive sale for the
good reason that no aggressive buying devel-
oped, while the market still was honeycombed
with weak accounts. This was the situation at
the opening yesterday. advantage of which was
taken by bearishly inclined traders and interests
who were anxious 10 reaccumulate securities at
lower levels. There was nothing novel about
the decline and in spite Of the large dealings
there were no really interesting features. The
operations were In line with those which have
been reported in the past when the market has
been lacked 10 inflated prices or when boom
has collapsed for lack of sustaining influences.
AS transactions ran above 100000 shares liqui-
dalton doubtless was sufficiently heavy to i'm
prove materially ha oFS
ulation, but opinion in the Street did not favor
the theory that bull operations would be re-
sumed from the current level II is not unlikely.
however, that an active rally will be brought
about as result OF buying by the shorts. Steel
common was well supported. This stock Is be-
ing handled in a mastery manner its move
ments bearing the earmarks Of the Of
Wall and Broad streets
Investors who hold Union Pacific and South
ern Pacific common shares realize that the rec
ords OF the two companies I'm the last three
years have justified the rate OF dividend paid.
and they now have the assurance of Mr.. Harri-
man that IL is the policy OF the management OF
the roads to make the dividends safe and sure"
For the investment community Mr. Harrimans
remark about insuring the security of dividends
was the best thing he said in his talk with
newspaper men, and IN should tend
strengthen confidence in the so-called tIarri-
man roads as representative American invest
ment channels. though SPECTATORS who have
been trading on the theory that the Union Pa
cihc and Southern Pacific soon would make in
creased disbursements 10 their stockholders
doubtless will not approve of the conservative
Idea or the head of the properties. The improve
ment and development OF these great lines are
tar more Important TO the investing world than
the cutting OF financial melons. The Union Pa
cine company has a large amount of cash on
hand Tor which il can find profitable use i'm it's
development work. and IL IL should elect TO in
vest some OF its surplus funds in New York
Dehtral the operation would be wholly in line
WIN MI Harrimans ideas of railway exnan-
sion' While IL also would be a strong bull arg,i
fnent on the securities of the latter railroad
Union Pacific stock has pretty thoroughly meas
nreo In aus market value the growth of the
Union racine company financially and physical
~ since the reorganization of the propertv fol-
rowing its receivership In 1894, and now that Mr.
hartman practically has announced that recent
pun rurnors had little reason for their circ,,Ia
ZION IL Is not unlikely that for a time ar leos,
the issue VIII cease 10 be such a prominent co.
tor IN speculative transactions Accordt,e .,
the opinion OF certain market observers otho-
STOCKS VIII become leaders. and il has been sug
gested that 81. Paul and the Hill shares 80,
soon take the place Of the Hartman securit;a
| as speculative favorites.
Money rates were frmer yesterdav a, -
changed quotations, while a further .d,,.,ao
was reported in the sterling exchange rna-la,
Exchange quotations abnormaIly strons 60
this period or the year, but IL is nor haIieya5
tnat the advancing tendency will result In a re-
sumption OF gold exports. though shipments In
August would not be without precedent Tha
market lie distressingly bare OF bills