New-York tribune., 1910-01-18
FINANCIAL MARKET
STOCK BEARS 4CTITE.
attack on Prices Induces
HeaUy Liquidating Sales.

After a moderate exhibition Of
strength in the early operations the
general market developed reactionary
tone under the influence of renewed
liquidation and pressure from the trad
ing element, declines in several issues
running beyond two points, especially
in Northern Pacific. Reading, Amalga-
mated Copper, ST. Paul. and Union Pa
cific. On the strength displayed in the
morning speculation showed a tendency
to become dull. while on the subsequent
volume, with the chief activity in Read
ing, the Hartman issues. st. Paul.
United States Steel, American Smelling,
the Hill shares and Amalgamated Cop
per. The downward movement was not
accompanied by adverse news bearing
on stocks. the chief outside development
of the day being bullish in character,
though it failed TO find reflection in se-
curities prices. 1t was the decision by
the Supreme Court of the United States
in the suit of the Western Union Tele-
graph Company against the State of
Kansas, in which the state sought to
prove that it had the right to make
law taxing the capital OF a foreign
company doing an interstate business.
The court held that the license fee Of
Kansas on the capital stock of the
Western Union was confiscatory, and
that if the law was good then the busi-
ness of the country would be thrown
into chaos and confusion. The decision
is recognized here as of farreach-
ing importance, as circumscribing pow
ers of a state to tax corporations of an
other state doing an interstate bust
ness.
The liquidation that took place in yes
terday's market merely represented a
continuation of the movement that
marked the course of trading last week,
and which reflected the readjustment of
prices from excessive levels to q range
more in conformity with interest rates
Scar operators took advantage of the
weakness that developed in the early
afternoon to hammer quota tons
throughout the list, and while the de-
cline was checked in the final dealings
by supporting orders from substantial
quarters there was no indication Of
strength at the close and no we'll de-
fined belief that the beginning of a
bull campaign was imminent. The
markets technical position, however, is
materially improved and it suggests the
probability Of a sharp rally in the near
future Rock Island showed resistance
to the selling pressure and closed un-
changed from Saturday. Consolidated
Gas advanced more than two points In
the morning, but lost its gain before
the close, while Laclede Gas, which I'D
TO II o'clock showed a gain of more
than one point, ended at a small net ad-
vance Steel common found good sup
port In the neighborhood Of "a.
II is understood that n large part
Of the increase in loans in last weeks
statement of the banks. showing actual
conditions as Of Friday night, repre-
sented borrowing by stock market in
terests who were compelled to take Sc
curities on the decline with bank ac-
commodation. Purchases of this char
acter will come upon the market on the
first appearance OF substantial strength,
and while they have been effective in
checking TO some extent decentralization
in prices they will serve as a weak point
in argument favoring permanent i'm
provement in market quotations. Ac-
cording TO the best informed people in
the Street, liquidation has not vet run
its course, and 1t is A noteworthy fact
that careful operators are inclined 10
sell on all rallies. Recent occurrences
in Wall Street have upset public con-
fdence in the stock market, and it
hardly appears probable that an active
buying demand will develop at prevail
ing levels. despite the declines that
have taken place from the high points