New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-22
FINANCIAL MARKET
Voluntary Liquidation Factor in
DEPRESSING Stock Quotations.

STOCK market ULlLfE
throughout the chief part Of the day on
: moderately active volume Of business
that represented voluntary liquidation
nv interests who we're buyers al the low
points last week and selling pressure
from the professional element The re-
trenchment policy announced by the
Union Pacific Company in itself caused
no uneasiness in speculative circles but
an alleged statement by an officer Of the
road that the company had made no
money in the last ten months strength
eued the pessimistic sentiment prevail
ing II various quarters of the Street
AS the Union Pacific showed for the year
ended June so d surplus available for
dividends Of almost l. per cent II is
difficult 10 see why any sensible trader
could credit an officer Of The company
with such a ridiculous statement The
Union Pacific has been an ably managed
property ever since its reorganization.
and ir adopting a policy Of reducing ex-
penses the directors have In mind coudi-
tions warranting rcrenchmeut and
doubtless they believe that their action
xIn furnish ar object lesson TO en-
uloyes who already are well paid. but
who are becoming more iusIstent IN their
demands for higher wages. Gross earn
ines on most of the railroads 10 the
country SNOW Improvement. and while
many companies have readjusted OK
pense accounts 70 the basis Of increase
wages. increased cost OF materials and
relatively low transportation rates, there
arc stin a substantial number OF roads
that will be compelled 90 adopt the
scientific management plan in order 20
reflect a fair proportion Of gross receipts
JIM net returns.
Union Pacific shares suffered o. maxi
mum loss of more than Z points while
Southern Pacific. Reading. United States
steel. St. Paul, Northern Pacific and
Lehigh Valley also We're noteworthy
weak features. Strength N Bethlehem
steel and Republic Iron and Steel wss
chiefly due 10 manipulation intended 70
induce belief in the improbable story
OF r TltIEtF Oh illf ~ - .l4-4 IlcL4il'r W .it
the Lackawanna Steel and some other
independent concerns. The Erie issues
were relatively firm and accumulation
appeared 70 be under way. AT their
present prices there is much 90 COM
mend these securities The general
market showed little rallying power at
any time IN the day. closing quotations
being near the lowest. Another big de
cline marked the course Of the Texas
Company stock. and IL was said in well
informed circles that heavy speculative
holdings had been unloaded at extern
sive losses The issue has lost net more
than i points since the death OF John
". Gates. who was the chief factor in
The company.
Loans Of the Clearing House banks
have declined upward OF 1000 600 in
the last three weeks. and while they
are still materially in advance Of those
reported a. this time last year the gen
eral position Of the associated institu-
tions is one of extreme strength. The
interiCr has not vet begun 10 with
draw funds from this centre for crop
harvesting purposes and unless forth
coming demands should be unusually
heavy Of which there is no Indication
al the moment great strength in money
rates is not likely 10 develop in the au-
tumn, especially as gold can be brought
in II needed. Sterling exchange was
classes of commodity bills. including
some cotton bills. the increase in the
supply being due 10 the clearing mp of
ire strike situation IN England, which
induce the drawing Of exchange re-
Gently held back Time money rates
were unchanged and the demand for ace
commodatiou was extremely light