New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-12-05
FINANCIAL MARKET
Liquidation and Bear Pressure
Carry Stocks Down.

&
dated last week. and a certain amount
of selling by urnid holders who were not
strong enough to carry their accounts
Indefinitely was reported. Ordinary pro-
fessIonaI traders Were bearish and ham
mered stocks throughout the list. while
/ the more important banking interests
/ offered little support and appeared quite
willing TO permit prices TO move to lower
/ levels Actual stock that came on the
market, Of course, was absorbed by re-
sponsihle buyers. but there were no or
ganized efforts to interfere with the
IiQuidating movement. which reached
substantial proportions. especially In
such stocks as Union Pacific, Reading,
United States Steel and the Gould shares
Tirnid holders sold because OF the ar-
parent strength Of the arguments Tor
lower prices brought forward by profes-
sional operators. but so far as could be
learned the general selling in the week
did not include much investment -hqul-
dation. There was nothing in the
/ weeks developments that warranted
sales OF investment securities. either In
The bond or stock department of the
market, but there were. however varl-
Gus factors influencing speculative con-
sJderations that wholly Endorsed the
position taken by the trading element
In the first place. a statement credited
TO James J. Hill. predicting lean times
ahead and Improbable days for LABOR
came at a psychological moment for the
hears as the market was in weak teen
meal position and wholly without the
support Of a large short interest Ihis
alleged Hill interview. which certainly
sounded quite like Mr.. Hill. started the
downward movement which was helped
along On the same day by announce
ment OF an action by the government
against the American Sugar Refining
Cou7narv under the antitrust law, While
following the latter came reports Of de-
creased net earnings by the leading rail-
road companies for the month Of Oc-
rober. official notice from the United
States Steel Corporation that new busl-
ness was at the rate of only % per cent
Of capacity, and an inimatlon IN Inc
Iron Age that 4 quiet time might be
looked for in the iron and steel industry.
Mr.. MeIlen. the president Of the railroad
-nnnonolv in New England, added a dis
NAV prediction Of the immediate future
Of business in the country, and other
"a larnitv PROPHETS came out with long
list of horrors to come To the real
factors in the situation the operators for
lower prices attached many imaginary
conditions. but for once they forgot to
name Colonel Roosevelt as the underly-
fng. cause OF real and fanCied troubles
The country is still in a period Of in
dustrial and economic reimbursement.
This reimbursement. however. is moving
along lines that eventually Will
strengthen the fundamental position OF
business in general, and people who are
looking for a collapse in real investment
values because OF current changing con-
d7tions are banking on disturbance that
never viii develop. An Impartial gov
eminent body will settle the question OF
railroad rates in the best interests of the
carrier and the shipper, and a refusal on
the part Of the Interstate Commerce
Commission TO grant the petition of the
railroads VIII not drive our transporta-
ton companies into bankruptcy. while a
decision in their favor viii not eliminate
the proft OF the merchant or manu-
facturer. The cost Of operation is high
in all DEPARTMENTS OF industrial life, but
the REIMBURSEMENT through which the
country IS passing will involve a reduc-
ton in operating expenses and cheaper
cost of living.
Naturally the various uncertainties in
the general situation tend to check trade
EXPANSION. but such uncertainties do not
contain elements that can keep this
country back for any length Of time.
Supreme CourC decisions in corporation
cases now pending. if IL favor of the
government. viii not involve loss OF
property If the Standard oil Company,
the American Tobacco Company and the
American Sugar Refining Company are
found 10 be operating in violation of the
law they VIII reorganize so as TO con-
form 10 the law rather than go into
liquidation, as some people appear 10 be
Iieve. and in the mean while there will
be no intrinsic loss in the value of their
securities The shares Of the companies
named are closely held. and spectators
are unable to bring them upon the mar
ket- Sales Of American Sugar Refining.
for instance last week. following the
beginning OF the government suit against
the company. amounted 70 only 100
shares. which were readily absorbed.
The larger number OF American rail
road and Industrial stocks are worth
buving on declines. and if the present
downward movement continues for any
length Of time there viii be some most
attractive bargains for people who have
idle funds on hand.
Money is easy in New York and a bet
ter situation is reported at interior
points: also at foreign financial centres.
a reflection Of the latter being found in
the reduction Of the Bank Of England
rate TO AZ per cent and in the proba-
biIitv OF a further decline before the end
Of the year Both the mercantile and
stock market demand for accommoda-
ton is light. and in some quarters a
teavv increase in bank reserves IS looked
for in the new year, owing 10 the idea Of
q11ierer times III business II We have q
plethora of money here bond values
should advance but a corresponding
movement in stocks viii not necessarily
follow. especially if the government
should decide TO issue ) per cent Pan