New-York tribune., 1910-06-02
FINANCIAL MARKET
Heavy Liquidation and Bear
Pressure in Stocks.

Further violent declines marked the
course of stock market prices in yester-
davss transactions, the downward move
ment representing professional pressure
and actual liquidation. the volume OF
the latter being enormous and coming
from speculative pools and individuals
whose margins We're seriously impaired
in Tuesdays operations. Overnight
consideration OF the action of the gov
ernment in bringing injunction proceed
ings against the proposed advance in
freight rates by twenty-five Western
railroads and the decision by the ST.
premc Court against the railroads in the
Missouri River rate case did not i'm
prove the Wall Street view Of the effect
Of the two factors upon the transporta-
ton business of the country, while the
old theory that the administration pol
jcies are antagoniStic TO corporate in
terests was revived in a manner that
had a most disastrous influence upon
buIl accounts carried upon borrowed
money. The situation was painted in
black without a colored border. And
vet in some banking circles the blame
for the collapse in prices was placed 10
the credit of the railroads for announc-
ing an increase in rates without present
ing convincing proofs that an increase
was justified. the action of the railroads,
it was argued, practically being de-
fance Of the Washington authorities
at a time when public opinion was
strongly opposed TO higher transporta-
ton charges.
Bear sentiment was intensified by the
idea that pending negotiations for
further financing of American securities
abroad would be seriously affected by
the administrations move against the
railroads. while the suggestion from
prominent banking house that "busi-
ness interests will have to organize for
political protection failed to encourage
the dropping spirits Of the speculative
community. which apparently believed
that industrial chaos was about 70 de
velop. Foreign houses took advantage
of the drop in prices to buy upward of
10000 shares in the local market.
Ranking interests made no attempt to
STAY the decline but they were buyers
on each new wave Of selling, and in ad-
clition TO their buying heavy purchases
were reported for the account of outside
capitalists, who only come into the
Street when prices reach bargain levels
United States Steel common was among
the few issues that received active sup
port. its relative strength, however, ex-
erting no effect upon the general list OF
oh 1aSyir
ran from TO points. with the heaviest
decline in ST Paul, which sold as low as
1891. closing at 1901, as compared
with Tuesdays final at 1853. On the
whole the industrials acted better than
the railroads. In the last hour covering
Of shorts brought about substantial ral-
lies. and AT the close the market pre-
sented a much improved position over
that reported earlier in the day. Weak
ness in st. Paul was accentuated b. the
selling. based upon the relatively high
cost of the company's bond financing in
Paris and the fact that this financing
viii place an additional interest charge
of 100000 ahead Of dividends. There
was no material change in money rates
yesterday. but sterling exchange was
weak under the influence Of larger offer
ings os bills against cotton and grain
exports and sales Of American securi-
ties in Europe.
Railroad net earnings for the month
Of April now coming to hand reflect the
increased cost of operating as conse-
quence OF increased wages and the high
,,rFoes of sf.uF,lias and materials the ef-
feet Of these factors being more pro-
nounced upon the returns Of the West
ern companies than upon those OF the
roads in the East, the latter so far hav-
ing been able To maintain a moderate
proportion Of the gain in gToss receipts
in net. II IL this reduction in net oper-
sting income AZ time when the gov
ernment is opposing an advance in