New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-17
FINANCIAL MARKETS
SHARP BREAK IN u. p.
Prices as a Rule Shoe Effect of
Heavy Realizing Sales-Money
a Little Frmer.

on an active volume OF business prices for the
larger number OF issues moved toward a lower
level In yesterdays stock market transactions
The expected heavy public buying orders failed
10 materialize at the opening while throughout
the greater part OF the day there indication
OF an eager desire the part OF the outsiders TO
buy stocks at the prevailing high figures, despite
the generous tips OF bull interests who evidently
expected 10 transfer Of their holdings 10
new hands. In the absence u an active outside
demand floor traders sold the general list pay
ing especial attention 10 Union Pacific which
suffered maximum loss of more than points
on decline that suggested the liquidation on an
active scale OF margin accounts accumulated at
last weeks advanced quotations. Outside OF the
pressure from the professional element the sales
by the public were the chief factor In the DAYS
downward movement, operations on this account
relieving the market of a weak following in all
the active stocks and encouraging some excel
lent buying the low points recorded espe-
cially in Reading, Southern Pacific Union Pa
cific New York Central United States Steel and
St Paul The Gould shares and the railway
equipment issues were heavy and apparently
without support In the general market trans
actions were undressing International Paper
American Cotton OIL Kansas City Southern.
Atchison and Peoples Gas being the only strong
features. In the late afternoon heavy sales were
reported throughout the list. in the course of
which many stop loss orders were caught, the de-
cline however bringing in active buying orders
from substantial sources that checked the weak
ness before the close The extreme extent Of the
drop in Union Pacific from 2ls to 214s. with
the closing AT PAS, net loss Of 3as. The pre-
ferred lost AZ net
II is understood in well informed Wall Street
circles that in the event of the liquidation Of the
securities assets Of the Union Pacific Railroad
the preferred stock Will share equally with the
common. and that IL a securities holding COM
pany should be organized the certificates of that
company win be distributed TO the holders Of
Union Pacific preferred well TO the owners
OF the common. Basing their operations this
promising outlook for the preferred stock. sub
stantial interests have bought large blocks of the
ISSUE believing that its price will be materially
higher before the company announces it's So
cahed segregation plan According 10 inforna-
ton received from people close 10 the Hartman
management, the idea held In some quarters that
with the formation Of a securities holding COM
pany the dividend on Union Pacific common will
be reduced is not well founded, and traders who
nave IN mind a short sale Of this stock for a
long pull on the theory that payments 10 stock
holders VIII De adjusted 10 lower basis, appar-
entity are counting disaster. The Union Pacific
Railroad II earning on It's transportation busi-
ness an amount far ia excess 81 the 10 per cent
paid, and n has proved ita ability - go through
lean years without the necessity ~ sconomizing
on dividends Owners ~ the comDsny's secun-
ties 20 be congratulated On the splendid
showing made by the road IN recent years and
on the bright promise of an increased income
from their holdings in the near future bat she
strength ~ the property and the possibilities ~
future favofa bic developments should not b. nc
cepted as guarantee by stock market specula-
tors Of the small margin variety that the com
mon stock is safe purchase at it, present high
quotation. Union Pacific undoubtedly viii seli
higher. but speculation I'm il has now reached a
stage fraught with great danger for the ordinary
commission house trader. And the same thing
may 10 sad of the entire market II is an un-
safe market for the small man. though there is
) no reason 10 suppose that words Of warning will
/ Keep this individual from losing his money
Bank statement figures do not encourage the
| iaea that easy MONEY viii run on indefinitely
Reserves were materially reduced last week and
current indications suggest an increasing drain
! upon rosa holdings IN the course OF the next two
months despte the talk that usually Is heard At
this time Of The year regarding the alleged abil-
( iiy Of the interior banks 10 handle the crop
movement without Withdrawing their balances
from the East. The West and South wifi need a
vast amount OF money for crop and general rner-
| camille purposes. and people who are counting
upon cheap loans going 10 be disappointed
Money Is cheaper abroad than II is here and for
eign bankers arc carrying large stock market
commitments for local interests Our bankers
win DC able TO borrow IN London: unfortunately
/ they cannot draw on Europe On trade account a.