New-York tribune., 1910-06-04
FINANCIAL MARKET
Acute Declines Mark the Course
of Stock Trading.

After showing q fair degree Of strength
In the early dealings, stock market prices
moved toward q lower level in the larger
part Of the list for the rest Of the day
Under the influence of a resumption OF
heavy liquidation and professional press
ure, the selling being based on the alb
sence Of substantial buying on the initial
advance and on the theory that the larger
interests were more upset over the rail-
way rate situation than they were Will
ing to admit. The Street, or, rather, the
bear element, had the benefit Of further
pessimistic predictions by railroad men
of coming disaster as a consequence of
the attitude OF the administration
toward the traffic combination that is
seeking 10 advance freight rates; also
the benefit of threats by certain railroad
men that the transportation companies
would cancel all orders for equipment
and materials, reduce their working
forces and institute economies to an ex-
tent that would react seriously upon the
general business Of the country. If
some OF the hot-heads in the railway
fraternity would be more guarded in
their public utterance THERE would be
less uneasiness among holders Of secu-
rites.
It is an easy matter 10 frighten in
vestors, and in certain quarters efforts
apparently are being made to force
holders Of stocks into liquidation on
stupid scare Frightened liquidation
quite often leads to serious trouble in
the financial and business world, and #
the present tendency Of stock market
movements continues general business
must inevitably be adversely affected
It would almost seem as If some Of our
railroad men were trying to encourage
such q development for an object les
SON. to the Washington administration.
which wants TO find out whether or not
the traffic associations are combinations
In restraint Of trade. A Chicago dis
patch sent TO Wall Street news agency
Yesterday said: Attorneys assure ex-
ecutives, who In turn assure financial
authorities, like George W. Perkins. who
is here now, that the dissolution OF the
Injunction is likely, but they all favor
the utmost resistance, and believe they
ninistration under present political con-
diuons and public sentiment. 1t is re-
ported that one Western system failed TO
get a private bid above 20 from financial
interests for a contemplated issue"
Stuff OF this sort contributed TO the
weakness in the railroad shares.
At the low levels the leading issues
Re h soh
of the morning Of from to points,
with the heaviest loss IN Union Pacific,
while as compared with the closing last
week net declines Of from 6 to IA points
were recorded. st. Paul has lost more
than 13 points since last Friday; Union
Pacific. 14H: Reading. 11s; Atchison.
77A; United States Steel. 6ss. and South
ern Pacific, S1z. Sound investment
stocks were sold without regard for their
actual value, and even guaranteed
stocks were offered for sale without at
tracing bids. The market was full Of
stop loss orders, to which bear traders
directed especial attention, forced selling
being particularly heavy in United
States Steel and Union Pacific, which
prominent banking interests identified
with the properties. Reports OF cancel
lation OF equipment orders caused ex-
treme weakness In American Car and
Foundry and American Locomotive
issues. Covering by the shorts in the
late trading was responsible for uniua-
portant advances from the low levels.
but sentiment was decidedly depressed
at the close OF business. bearishness
being intensified by a reported state
ment by a railway president noted for
his entipathy TO government regulation
of corporations that the credit OF the
American railroads had been destroyed
by the present administration al Wash
ington- Call money ruled at 2& per
cent Sterling exchange was again
lower. and foreign houses continued TO
buy securities in the local market. Lon
don apparently believes that American
securities are Ct bargain figures.