New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-30
FINANCIAL MARKETS
STOCK PRICES DOWN.
HeaUy Speculative liquidation
Marked Course of Last Week's
Trading-MOney Easy.

Industrial expansion was reported In all de-
partments of trade, advices from the agricult-
ural sections Of the country uniformly
favorable. nothing occurred TO disturb credit and
money continued 20 rule at an easy level. though
factors in the money market suggested the de-
velopment OF sitter rates for accommodation at
no remote period. The downward movement in
prices on the Stock Exchange reflection OF
the dangerous speculative conditions brought
about by the recent reckless operations for the
rise. aggravated by the uneasiness in the Street
over the health of Mr.. Hartman and the tales
Of runor n1ongers asserting that harmon no
longer existed in the councils Of the Union Pa
cific Railroad II was announced in lrresponsl-
ble quarters that gigantic conspiracy had been
formed against Mr.. Hartman by the very men
who are closely identified with the Hartman
properties, and while trashy gossip Of this char
acter was without effect hpon experienced oper-
ators Il doubtless served 10 intensity the fright
Of weakly rnargined holders who into
panic as they always do when inflated Wall
Street boom has been punctured. The climax
Of the bull market was reached with Wall Street
pools and public operators buying stocks the
runlors that there would be big Union Pacific
melon in which the preferred stock would share
equally With the common. despite the fact that
the bylaws OF the Union Pacific Company for
hid anything more than per cent TO be paid
on that issue and the announcement Of Mr..
had nothing on his mind in relation TO extra dis
tributions TO the stockholders and that there
was no immediate prospect Of the segregation OF
rhe securities of other roads owned by the Union
Pacific was the signal for an onslaught upon
prices that were ready 20 crumble conse-
auence OF the weakened speculative position Of
the market
Danger signals have been waving in the Street
for many weeks. Conservative bankers and
writers have pointed out rhe folly Of buying
a---7 =
words OF warning have fallen upon deafened
ears. People who have lost money a result
OF the Union Pacific speculation assert that the
have been hamboozled out of their funds by
false promises and scandalous manipulation
There is no doubt that false rumors have been
circulated and that gross manipulation has heel
INDUCED in. but such practices incidents OF
totterine bull market and while 70 official
Investigation by the Stock Exchange authorities
present no excuse for the specuiator 10 Eru1nble
over his losses. The latter has had good advi.e
stay out of the market and. moreover. he
has had the lessen OF past experiences in specu-
lation 10 guide him 70 a better understanding of
the insecurity OF profits in operations conducted
upon other peoples funds at high level % quo
tations Some traders. however. never learn h.
experience. and this does not apply TO the
binary public operator only. There We're many
accounts lioudated last week at severe losses for
oldtinne spectators who were laboring under the
impression that the market was in the absolute
terests. who would support prices signs OF
bear aggressiveness public LIQUIDATION. but
the course OF prices proved quite conclusively
that the larger interests had taken advantage
OF the steady rise IN stocks 10 distribute their
holdings. and that they were not disposed 20
interfere with a movement that promised the
establishment Of more attractive buying Levels.
Reckless Wall Street operators and so-called
bobtail pools were heavy losers and incidentally
many innocent but uniformed investors were
prices fcreshadowed some untoward event in the
business financial world that would upset
dividends and lower actual Investment values.
Happily nothing OF the sort was indicated by
the decline in Stock Exchange prices. The prob
ability Of a resumption Of bull activity at the
moment, beyond the natural bidding up process
that follows all market slumps does not appear
promising. and II reckless bull speculation should
develop in September further severe disturbance
doubtless will develop from money market con
ditions. This weeks course OF trading will show
whether not liquidation has run its course.
On further declines stocks should appeal 20 In
vestors. and il is not unlikely that I'm the event
Of readjustment 10 lower level the best kind
of buying will be forthcoming.
II is unfortunate that physical infrrnity prom
Uses 10 keep Mr.. Hartman away from his office
for considerable period. but holders of tile
Hartman stocks need not assume that In TIE
mean time their investments I'm the Hartman
properties will depreciate in actual value. These
trained railroad men. and their natural expar-
sion will not be checked by the Illness of Mr.
Hartman or by bear attacks upon their securl-
ties. Investors who hold Union Pacific and
Southern Pacific common shares doubles. re-
alize that the records OF the two companies IN
the last three years have justified the rate Of
dividend paid, and they now Rave the assurance
Of Ar. Hartman that il is the policy OF the
management OF the roads TO make dividends
safe and sure For the investment community
lima, aarlr
cur1ty Of dividends was the hest thing he said
in his talk with newspaper men last week. ard
IL should tend 20 strengthen confidence in the
permanency OF Union and Southern Pacific
shares as solid income producing securities Mr.
HarT1man's policy should be followed by every
railroad and Industrial corporation in the coun-
try Investors do not want enormous dividends
and extra disbursements upon which they can
not depend for any length OF time and. fortu-
nately, among our investment corporations con-
servatism IN the matter OF dividends is becon-
ing more pronounced, while greater efforts are
being made 20 place the properties In q cond-
ton that will insure payments TO stockholders
in bad as well as in good times
Money rates are firm at the higher levels re-
Gently established. with no Indication of an i'm
mediate important advance. though the general
position Of affairs affecting the movement OF
money suggests higher quotations in the autumn
Local interests who are anxious 20 see stocks
advance profess 10 ind in current conditions no
possibility OF really high rates for loans In the
fall. but the advces received from Interior bank
ers, who have little concern with stock market
speculation and who are better equipped than
Wall Street 10 estimate upon the probable needs
in connection with the financing OF the haryests
and general trade requirements bear out the
theory frequently expressed in this column that
the West and South viii withdraw large sums
OF money from New York in the course OF the
next Few months. Interior hanks have an enor-
nous amount OF money on deposit In the East
subject TO recall. and unless New York should