New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-20
FINANCIAL MARKETS
HE4VY STOCK SALES.
Sharp Break an HarrimanS, Read
ing and Ne7c York Central
Money! Rates Firm.

Stock market prices suffered further material
declines in yesterdays operations active
selling movement that represented the liquida-
ton of margin accounts and pressure from the
shorts, who took advantage of every weak spot
TO hammer quotations Though there
coveries from the low points at which an ex-
cellent class of support offered net losses
were general at the close renewed selling in the
last hour offsettng much OF the effect of earlier
buying by interests who went into the market
to prevent the development OF speculative de-
mOraliZation. The movement Of security prices
since the high points established in Mondays
market has not created surprise in conserva-
tive circles but there is wailing and crashing of
teeth in quarters where il has been firmly and
obstinately maintained that any stock is a good
purchase on margin at advanced quotations be-
cause Of the splendid outlook in the country's
industries. The idea that Mr.. Hartman is a
sicker man than admitted is being effectively
used an argument for lower quotations. but
the best point in favor of the bears is found In
technical conditions and the apparent intimation
from powerful sources that bull speculation
should not be allowed TO riot. with the sug-
gestion that active reduction in the commit
ments of certain houses would be advisable.
Union Pacific. Reading. United States Steel.
Southern Pacific and New York Central showed
the chief effect Of the days liquidation. Union
Pacific ending 4& points off from the preceding
day: Reading, AZ; United States Steel. ia
Southern Pacific. 2Ss. and New York Central.
SIS. In the last few minutes Of trading the
tire list showed extreme weakness. going below
the preceding low figures. Reading. Union Pa
cific and New York Central exhibiting panicky
declines. though not illogical i'm view Of the re-
cent reckless speculation in the issues. The
local traction shares Central Leather and United
states Rubber were strong features and sup
piled the only important exceptions 10 the down
ward course Of prices A Boston voice that has
long been silent heard yesterday and il is
not unlikely that some of the selling based
on the words Of warning given from the Hub
There has been some good buying Of the Rock
Island securities i'm recent weeks as conse-
quence Of the Improvement reported I'm the
earnings Of the Rock Island lines and on the
expectation that at no distant day the preferred
stock will be returned 10 the dividend column.
Ihls issue is the most prominent candidate
among the current non-interest paying shares
for dividend honors. and II is not unlikely that
in 1910 the directors will find ample warrant I'm
the earnings Of the property for the payment
OF the full per cent 10 which II is entitled.
while II is possible that / per cent will be de-
clared in October OF the present year as earn
ings are increasing al rate that will fully Jus
tify such action Traffic on all the railroads I'm
the country is growing, and with the outlook for
large crops the prospects for the transportation
companies are most promising. especially as the
great agricultural community will be heavy
buyer Of merchandise with the profits II will
receive from the marketing Of its grain and
cotton. Earnings have been increasing for the
last eighteen months. and though they still are
under those of the full carrying capacity there
is no reason why in the next year the volume of
business handled should not be heavier than
ever before In the history OF American railroads
particularly as the roads Will be called upon to
move the bumper harvests Of the current wear
which according TO the last government esti-
mates. will be 500 100000 bushels OF grain IN
excess Of the yields Of 1908. The chairman of
the interstate Commerce Commission predicts
mat because OF lack of terminal facilities freight
YARDS and sidings the railroads of the country
VIII lace I'm the autumn a traffic congestion
greater than that in the active fall of 1907 and
prediction of this character from such a
source ought TO be "A strong bull argument for
the people who believe that the nations indus
tries are entering period of long prosperitv
rms prosperity. however has been pretty well
olscounted by the larger number of stocks
The Bank of England made no change a, ITO
minimum rate of discount yesterday and nre
scented a strong weekly return the nronortio, .,
reserve to liability standing at the highest Azure
for this week in the last nine wears With tho
exception of 1902 and 1904 In the local rnarLet
money rates remained at the recently estab-
lished hrmer levels. with indications favorinp a
gradually hardening tendency Domestic ex
change continues TO move against this centre
while sterling rates were firmer In the opdon
market weakness developed in the American de-
partment, and cable dispatches showed thar q
bull operator at that point with heavy commit
ments for American brokers had been forced IN
realize profits the selling for this account in
tensifying the general weakness