New-York tribune., 1910-01-13
FINANCIAL MARKET
STOCK PRICES DOWN.
Realizing Sales and Bear Press
are Upset Bull Calculations.

Trading in stocks was moderately
heavy in volume on movement OF
prices that showed great irregularity,
with net losses in the larger number or
issues at the close. The opening was
dull and firm in most departments, with
a certain degree of strength in the Har-
riman shares. which subsequently for
brief period became active and strong
on buving based upon the belief that the
federal government would investigate
more fully it's chances of success IN It's
Union Pacific-S Southern Pacific suit and
would find that control of the Southern
Pacific by the Union Pacific does not
constitute a violation of the antitrust
law, Early strength in these issues and
elsewhere in the market, however, was
not maintained in the afternoon opera
tions pressure from the trading element
and realizing sales bringing about ma
teriaI recessions which left last prices in
the active list from l to points under
the closing Of the preceding day. The
decline in stocks was coincident with
heavy selling movement in the cotton
market Quotations for both stocks and
cotton have been too high, and the cur
ditions which do not call for exaggerated
prices.
Some buying of United States Steel by
houses that are supposed TO handle the
accounts of insiders in the issue encour-
aged the idea that the directors would
advance the dividend to a per cent
basis at their quarterly meeting, which
will be held at the end of this month,
while it also created an impression that
the larger interests had resumed their
campaign to carry the price of the stock
to par. Authorities on the steel trade
estimate that the net earnings of the
United States Steel Corporation in the
current year will reach $3.50, 100000. On
this basis, which is well within reason,
there would be earned on the common
stock after deductions for depreciation,
interest and preferred dividends upward
Of 10 per cent. Five per cent could be
paid on the junior security and there
would be left balance of S10,000,00O for
new construction. The concern has
spent about $300,000,OO0 from earnings
on new construction since its organiZa-
ton, and in the current year the effect
Of the large expenditures upon the Gary
plant will be reflected in a heavy gain in
net income. Considerations affecting the
favorable position of the steel trade had
little influence on stock market quota
tions In the last hour of business on the
Stock Exchange, prices in that time de-
Clining sharply under renewed selling
pressure Prices are moving toward
bargain level Business conditions are
sound.
Though call money is now quoted well
below the level prevailing last week,
rates are not easy, and conditions af-
fecting the market do not point to the
DEVELOPMENT of a period of cheap funds.
Current indications, however. suggest
that the ruling level soon will be under
az per cent, especially If the liquidating
movement in stocks continues. The
banks are gaining on their operations
with the interior and with the Sub
Treasury, and in the course Of the next
few weeks the reserves of the Clearing
House institutions should show ma
teriai increase over December holdings
and encourage resumption of specula-
ton on the bull side of stocks. Current
prices for the leading railroad issues
show an average decline of almost 3
points from the high Of 1909 and about
4 points for the chief industrial issues.
If the Stock Exchange authorities carry
out their promises TO eliminate gambling
orgies on the board the public may be
induced to return to the market, par
ticularly if the current declining ten
dency should run little further in at
in actual worth a consequence Of
their loss in market value. Time money
continues at a reasonable level, and
quotations on commercial paper infiict
no hardship upon the borrower. The
sterling exchange market is inactive at