New-York tribune., 1911-12-29
FINANCIAL MARKET
Sharp Decline in Stocks on Poor
Railway Earnings Reports.

Dull in the morning hours TO almost
market soon after midday yesterday
took a downward turn with tho issuance
of the November earnings statements OF
the Union Pacific and Southern Pacific,
and in the last hour declined rapidly,
with Union Pacific and St Paul in the
lead. At the close. which In almost
every case was at tho bottom. or only 4
trfling fraction above ii. Union -'acihc
showed a net loss of 2la points; st. Paul,
Reading an1 Amalgamated Copper were
down 13s each. steel common was IA
points under Wednesdays final figure
and Southern Pacific rs, and. apart from
few specialties. the entire list showed
net declines. Poor earnings had been
expected to be reported by the Union
Pacific and Southern Pacific and some
Of the traders had believed that that
probability had been discounted but the
publication of the figures, which in the
case of Union Pacific were even less
favorable than had been looked for, was
followed by vigorous offering of these
issues and then Of the general list. the
selling being almost wholly professional,
although some liquidation was apparent.
Union Pacifcs gross earnings in Novom-
ber were $SSS, 120 less than in the same
month Of 1910. while operating expenses
increased $245 and taxes increased
= = h, Ira ncsi,,
Southern Pacifc's gross decreased S24l,
40. operating expenses increased S400.-
292 and taxes S13, 762. with the result of
decrease of S715,7S3 I'm net operating
income. The Union PacifiC's shrinkage
i'm gross was ascribed 10 adverse weather
conditions last month and partial crop
failure I'm the territory served by the
road, while in the case of the Southern
Pacific the heavy increase of expenses
was laid in principal measure TO the
shopmen's strike, now ended.
The downward movement, which be-
gan with the selling of Union Pacific and
Southern Pacific, increased in breadth
and momentum when the traders in
cluded st. Paul in their operations and
revived selling it on rumors OF a de-
crease in the dividend next month. All
three stocks yielded easily to the press
urc, and with them most of the other
issues. Senator Clark added his predic-
tion Of 15-cent copper to the similar
forecasts recently made by other prom
inent figures in the industry, but Anal
gamated ended the day with loss
ports came from various sources Of the
excellent prospects of the iron and steel
industry, particularly of the heavy or
ders being booked by the United States
steel Corporation. but Steel common
closed with a net loss only shade less
than that Of Amalgamated. one of the
factors adversely affecting Steel COM
mon, and 10 some extent the whole mar
kct. was the receipt of advices from
Washington calling attention to the
probability that tariff legislation would
be introduced and pressed by the Demo-
cratic majority in the House, with re-
ductiOn Of rates on steel as a leading
feature. Still another contributing factor
was the realization of the near approach
Of the New Year period, when record
disbursements of interest and dividends
will bc made, market operators being
naturally apprchensivc Of stiffening in
money rates. due to calling Of loans, as
an incident 10 the accumulation of the
funds necessary for those disbursements.
The money market yesterday gave no in
dicaticn Of impending stringency. but in
the opinion of experts on money ii is not
unlikely that higher rates will prevail
for a time next week, while the posi-
bility Of a demand from European cen
tres for money to meet the requirements
Of tho season is not TO be overlooked, a
possibility accentuated by the renewal
yesterday of the bidding by German
banks at high rates for thirty-day loans
from local institutions