New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-08
FINANCIAL MARKET
Stocks Show Better Tone, While
Money Develops Greater Ease.

Money Develops Greater Ease.
Current transactions in the stock mar
ket represent in large part tho opera
tons of the professional element. which
continues TO show no disposition to make
extanded commitments on either side Of
the speculative account. Efforts, how
eve-, TO induce an active selling move
rnent constantly are reported. but no i'm
portant liquidation has taken place on
the exchange since the wave of selling
that i over the market on July &c.
There has been, however. some heavy
| liQu:Gation outside the exchange large
blocks or stocks have been taken over
from crippled operators at private sale.
| the so-called Hawiey issues figuring to a
| considerable extent in such transactions.
Many people have been severely injured
financially in the last few months as a
consequence Of the great depreciation
that has taken place in that time in Sc
curities prices, and their only escape
| from still heavier losses has been
| through the willingness of strong bank
! ing interests to relieve them Of their
most attractive bargains recently have
been picked up by capitalists who have
shared in the financing of the lame
ducks" Of the Street, and, according to
the point of view of many traders on the
floor OF the Stock Exchange. further op-
portunities will be presented before the
close of the summer for the accumula-
ton of high grade issues at extremely
low figures.
The assumption that liquidation will
continue is based upon the theory that
coming events will tend to promote in
vestment selling and bear pressure in
the market, the possibility that the dark
picture exhibited by the professional
operators for the decline will not be fol-
lowed by dire developments failing to
find many adherents in the speculative
community. According to the calcula-
tions Of the bear element the harvestS
will turn out far lighter than any indi-
cation now suggests, money will reach
an abnormaIly high range. the Congress
elections will go against the Republican
party. Europe will shut its doors to
gold Withdrawals for New York account.
dend reduction as an object lesson to the
Interstate Commerce Commission, the
iron and steel trade will go to pieces and
the Supreme Court will dissolve the
American Tobacco and Standard Oil
cornpanies. These and other horrors.
however, will hardly disturb the eQua-
ni1nity Of intelligent investors. 1t is
quite possible that further liquidation
will be recorded on the Stock Exchange,
b11t there appears to be no indication
that the United States will go into bank
ruptcy.
Short selling and the circulation of
false rumors have been responsible Tor
many recent declines in stock prices,
notably in the case Of Northern PACING,
which is now quoted in the neighbor-
hood of forty-eight points under its nigh
point of 1909. The argument Is ad-
yanced that as a result Of competition
from the ST. Pauls Pacific Coast extern
sion and Of the damage to the wheat
crop in the Northwest the dividend on
Northern Pacific will be reduced, but
there is nothing in the attitude OF the
directors Of the company or in the char
acter Of the roads earnings that suggests
| that any change will be made at the
next dividend period, three months from
now There is a large lot of undlgested
new Northern Pacific stock in the mar
ket, and the chief cause Of the decline
| in the price Of the issue is found IN this
| fact and in the efforts of a heavy short
| interest to cover its contracts at at
| tractiye prices. The traffic over the
| Northern Pacific viii increase as natu-
raj development of the territory through
which the property's lines run, and st.
Paul competition will not be distinctly
| felt. except for short time
The idea that the Kennedy estate is
selling its vast holdings of Northern Pa
cific and Great Northern at prevailing
prices is not Well founded, but the sug-
gestion, however, has helped along the
decline in the two stocks. Certain lndl-
yid1als identified with the Hawley FOL
lowing have been compelled to hQuidate
large. lines of Chesapeake & Ohio and
other so-called Hawley shares, but Mr..
HawIey himself has not been a seller,
nor has any one been cunning for MIN,
as rI1rnored in bear circles. Spectators
who have an idea that they can dispose
Of MI Hawley as a factor in the rail-
road and financial world will have to in
clude as victims the Morgan and Ma
tional City Bank people, as Well as other
financial interests who are factors in the
railroads that are now classed as Haw-
lev properties If further large blocks
of stocks are hanging over the market
they will be taken by the bankers who
OH all recent declines have been
STRENGTHENING their ownership Of the
American railroads through purchases
of securities in the open market and at |
private sale
The railroads are showing almost rec |
ord breaking gross earnings. yet net re- |
r11,13s are pad IL the larger number Of |
reports coming to hand. For the month |
OF June such leading properties as the |
Pennsylvania, the New York Central, |
the Atchfson and the Union Pacific pre- |
sent substantial improvement in gross |
receipts. but losses in net results, the |
falling eff in the latter in the face of |
steady gains in gross creating the i'm |
r,ressior In the minds of suspicious Wall |
street folk tc&t ret earnings are being !
doctcreG in order 10 back up The plea /
q. the transportation companies that |
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