New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-07-04
FINANCIAL MARKET
Work of Liquidation in High
Grade Securities.

weeks operations. the average for the
! leading railroad shares in Thursdays
| trading standing at 11150, against 123.C0
at the beginning of 1910, and 1916. the
/ high point of 1909 and the chief indus
! trials at 81. %. compared with 9S.40 early
| in January and 90 80, the record level
recorded last August. The downward
movement, which was based on ateudl
liquidation and heavy professional bear
pressure, was panicky at times and most
alarming to many owners of American
investment securities. who apparently
believed that the decline represented de-
probation in the actual worth of their
holdings, despite the fact that the de-
velopments of the week, outside of eX-
aggerated reports of injury to the spring
wheat crop. contained nothing upon
which one might be apprehensive of the
! future earning power of our railroad
and industrial corporations Stocks de-
clined TO levels that compelled the liQui
dation of accounts that a few months
ago were considered strong. The neces-
sity of raising cash by the sale of in
vestment holdings in order to support
speculative commitments accentuated
the general weakness and afforded
most attractive opportunity for the COW
ering of short contracts and the pur-
chase of high grade securities at figures
that represented a big investment re-
turn.
Spring wheat apparently has been
damaged to a certain extent, and the
forthcoming report on crop conditions
therefore will be awaited with unusual
interest. 1t is not believed. however.
that the injury done is anywhere near
as great as reported. Moreover, extern
sive curtailrnent of the yield from the
estimated crop, as based on the govern
ment figure as of June l. will not drive
the country into bankruptcy. This is
not a one crop country, and spring wheat
supplies but a small proportion Of the
total harvests Our chief crops, corn
and cotton. are progressing in man
ner that suggests bountiful harvests,
while winter wheat promises a return
more than normal. with the outlook for
oats and hay most promising. Although
Wall Street has been going through
period OF liquidation, the cause of which
may be traced back to the excessive bull
speculation and initiation of 1909, there
has been no widespread depression in
our industries, reflection Of which Is
found in a heavy volume of railway
traffic and large bank clearings. There
is reported by the commercial agencies
trade irregularity. and current indica-
lions do not hold out the hope of eXpan-
he hlrt N
normal harvests and the healthy condt-
lions that come from season of nqul-
dation in all markets there doubtless VIII
he a decided increase in the country's
industrial activities in the autumn.
In a series of decisions rendered by the
Interstate Commerce Commission last
week certain Far Western railroads were
ordered to reduce rates and fix reason
able rates. and the fact that in the So
called Nevada. case the commission
ruling appeared to be in line with the
recent decision of the Supreme Court in
the Missouri River rate case encouraged
belief in Wall Street circles that the
prospects for rate increases on any road
in the country were extremely unpromls-
ing Wall Street PUSHES TO quick con-
illusions that quite often are not justi-
fed by facts The fact that the Inter
state Commerce Commission has found
that in the case of certain Western
reads rates are too high does not war
rant the assumption that it will not be
disposed to favor the raising of any
rates. The commission is composed of
intelligent men. who did not give de-
cision in the case of rates to places IN
irtermountain and Pacific Coast states
without having made an exhaustive
studv of the subject According to the
opinion of these men. the transportation
charges in this particular case are I'M
reasonable and worked against the in
terest of the shippers, while. on the
other hand. if they find that other roads
which desire to advance rates on the
basis that under present schedules the
transportation companies are unable to
make a reasonable profit. it can be taken
for granted that no obstacle will be
placed in the way of an increase.
Net earnings on some lines show de-
creases in the face of large gains in
gross receipts, but it is interesting 10
note that in the case Of two OF the
biggest cornpanies in the country, the
Union Pacific and the Southern Pacific,
the May returns present marked in
creases in net results. Notwithstanding
higher wages paid to employees and the
heavier general operating cost. The
Atchison makes a poor showing in net,
and spectators see a reduction ahead
in the dividend on the common which
really might be the best action the di-
rectors could take. inasmuch as g per
cent has never been considered a con-
servative rate for the Junior security
of this company. Atchison as per
cent stock would not be dear at its cur
rent price There is a long list of high
grade shares that ought to appeal to
investment capital at prevailing quota
fions, notably Union Pacific, Pennsyl-
vania. Louisville & Nashville; New York
Central. Baltimore & Ohio preferred.
Norfolk & Western preferred, Great
Northern preferred, Manhattan Elevated,
MINNEAPOLIS st. Paul & Sault Ste. Marie,
among the railroads, and American
Sugar Refining preferred, United States
Steel preferred International Harvester
preferred, American Tobacco preferred,
BROOKLYN Union Gas and American Car
and Foundry preferred, among the in
duStrialS.