The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-12
WALL STREET NEWS
Dizziness Again in Evidence
i'll the Market
RETRENCHMENr POLICY SEEN
Drastic Economics of Railroads
shown I'm the Monthly statements.
Business Reaction May Follow Loss
of Orders Due to the PAIRING of EK-
penses-Smelters II Weak.

New York, Aug lin trading that
was almost entirely OF professional
origin the trend of the market was gen
orally reactionary to-day. London was
again a purchaser on balance. but the
transactions for foreign account were not
al all large, and business from the Wall
street commission houses was lnconsider-
able.
Among the professional operators and
other experienced traders who contrib
uted most OF the business, sentiment ap-
pearcd to be turning bearish again, as It
has on the occasion OF every dull period
this year To-day their efforts to dis
lodge stock were more successful than
on previous days OF late. an attack on
American Smelling and Refining produc-
ing LIQUIDATION, on account OF which the
stock sustained a maximum loss OF more
than three points.
Declines in Active Stocks.
The weakness OF smelters was followed
by declines IN other active stocks. but
in none OF the others were the losses at
all heavy, and In the late trading a rally
which followed the publication Of annual
financial statements of Union Pacific and
Southern Pacific recovered most Of the
previous losses. The stocks directly az
fected by the statements closed with
fractional net gains. for the statements
were Unexpectedly favorable. showing
for both roads such large SURPRISES in
excess Of dividend requirements as TO
dIspel all fears OF reduction in dividends.
Both roads showed notable increases
over the previous fiscal year in both
gross and net earning and SURPRISES,
amounting in the case Of Union Pacific
TO 1927 per cent on the common stock.
and in the case OF Southern Pacific 10
IS per cent.
Two other railroad statements to-day
displayed as strikingly as did the June
statement Of Rock Island yesterday the
drastic economies made effective by the
big railroad systems since that time in
. May when Il became evident that IN
' creases in railroad freight rates would
not be granted before the end Of the
year. These statements were for the
month OF June. In which policies Of re-
trenchment were first made effective b.
the reporting roads.
show Small Increase.
Missouri Pacific, as compared with an
increase OF $4,000 in gross earnings.
showed an increase Of only $4,000 In ex-
penses, and st. Paurs expenses increased
by but $4,000, as compared with an IN
crease Of $5S30oO in gross earnings. In
other roads reporting for the same
month, notably St Louis and San Fran
cisco and Chesapeake and Ohio. the prac-
tice Of economy had not been adopted at
as early a date. and showings Of net
earnings were comparatively unfHVOrabie.
In regard 20 the evidences OF drastic
economy. the financial community Is for
the moment Of two minds. 1t is granted
that the policy IS directly or Immediately
advantageous 10 holders Of railroad
stocks, since II tends 70 assure for them
regular dividend payments But the par
ing Of expenses means the employment OF
fewer workingmen and great loss Of
business TO industrial companies depend
ing upon the railroads for orders Rail-
road economy may thus accelerate the
business reaction.