The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-11-25
A.
STOCK FACTOR
REACTION IN-SToCkS-p
DUE TO THIS RECENT
DISTURBANCE.
DO BAD BOOK KEEPING
TERRIFIC LOSSES SUFFERED By
SOME INVESTORS NOT
DUE TO USUAL
CAUSES.
Nv THOMAS c. sHoTWELL.

NEW YORK. Nov. 24.-Thc reaction
in stocks to-day seemed to indicate
that segregation stories have been
carried too lar NOBODY reaiy p'
neyes that Umon facnlc in,ehas 10
as,rinule any asses nov, ana the
street IS oeslnnlne 10 aount the SEN
ulneuess OF the L.enish HaIiey ruuior.
,tocAs were tecnnlca!4y IN shape Tor
reacliun anyuuw to-uay, ana as q re-
SUIT OF the oIstrust or THESE sesfeea-
ton yarns trauers look prohts III All
ulrec,lons lne result was list or
net Losses. The extreme deciines we're
sharp because IN the early traoihs
stocks haa a further ADVANCE. rinai
prices were at about Inc lowest Oh
the Jay III most issues
Particular weakness was developed
In the traction shaies. New securities
Of the Third avenue were Asled- On Lie
eAeuanae Inc new common stock
SOLD DOWN To So. the four per cent
bonds 10 81, ana the o's TO l. "a. Al
these ngureS the old stock Is worth
$a.4D a share. IT broke from 10 =,
closing at the bottom his IL the
Lowest price ever reached by This issue
which oniy few years ago was IN &C
tive demand at az. an siit-eased
investment. Inter ooro- Met. stocks
=
ferred decInlns more tnan points.
Lertincates tor metropolitan bonds
were extremely active, The o'e advanc-
ing ass points. and the As moving
up points. because the local street
car companies are to be reorYanlzed
within the next three months their
securities VIII be active.
Bad Book Keeping.
1t will be well for trauers to remem-
Der that the terrinc losses suffered by
investors in these issues we're not so
much the result of looung as OF bad
bookkeeping. II seems remarkable that
bankers should have deceived them
selves in regard to the value of the
traction properties, but there Ia evil
dence that some of the leading trac-
ton men and bankers were heavy
stockholders, and really believed that
the properties were worth their mar
ket price. and were earning the diVl-
dends that they were paying. When
they discovered their mistake they
naturally sold before the pupl'c was
alive to the situation.
Although national bank stocks have
been quiet recently investors should
give some thought to the possibility
Of reduced earnings after the banks
have retired from speculation as they
must do now that Congress Is after
them. Much indignation has been ex-
pressed by bankers from time to time
at the repeated references in this
column to the discretionary poole that
some of the big institutions have beeh
operating.
Discretionary Pool.
A discretionary pool Is not necessar-
lily bad institution, but 1t Is not legal
for u bank to operate one and all the
national banks Will soon be forced to
confine themselves to legitimate bank
ing business. Several of the leading
institutions of New York and Chicago
have made their greatest profits out
OF speculations in the stock and bond
markets. They mako mistakes and
at times suffer heavy losses but the
business has been very profitable I'm
general, and when they can no longer
underwrite bond issues or manipulate
railroad stocks with money OF their
depositors the earnings Of the banks
will be reduced and their stocks will
be less valuable. Liquidation Of ma
tional bank stocks must be looked for
this winter and any sudden activity
and strength in such issues should be
taken advantage OF by small stock
holders
Number of shares sold to-day. 610-
362; q year ago, 1889.
Par value OF bonds sold to- day, a.
$4,000; year ago. t1,sS2.000.