New-York tribune., 1911-01-02
YEAR Of LIQUIDATION IN SECURITIES
Prices for Larger Number Of Leading Stocks and Bonds Showed
Extensive Losses in Last Twelve Months.
MONEY MARKET RATES AS A RULE AT EASY LEVELS

stock market, as well as in most lines of
trade and industry. II was a poor year for
Wall Street commission houses and lean
year in the cotton goods and woollen busi-
ness. but II was not a year CT general de-
preston In the country's markets. al
though through high operating costs, in
Guiding increased cost OF labor, the margin
o, profit on most transactions was rela-
lively small. At the opening OF 1910 the
cost Of living was higher than at any cor
responding time since the days CT the Civil
War. prices OF commodities. such as bread
stufs. provisions, textiles and other classes
OF articles, as Of January OF the year Just
closed being represented by an index num-
Der Of ss2s5l, as compiled by Bradstreets,
while on December the number stood at
toward readjustment in economic affairs
that developed in the second half Of the
year and which is quite likely 10 continue
for weeks 10 come.
The new year opens with sound tunds-
mental conditions. and with the promise of
healthy expansion in all lines OF trade
when liquidation in the various markets
has run It's course and when the Supreme
Court Of the United States has rendered lis
decisions on important corporation cases
now before II. The decision OF the Inter
state Commerce Commission on the appl!-
cation OF the railroads to increase their
freight rates also will remove all uncer-
tainty from the business situation which
at the present time IS an important factor
in restricting purchases by the railroads in
the iron and steel market. In the year just
closed the railroads were not important
buyers CT rails and structural material
owing 20 the rate controversy. while they
were not factors in the investment market
for the good reason that they were unw!ll-
Ing TO make new capital expenditures pend
ing the outcome Of their application 70 the
Interstate Commerce Commission for
higher freight charges.
The reports OF the various railroad com
panies in the last twelve months have
shown excellent results In gross earnings,
but in net returns heavy losses have been
recorded owing TO the high cost Of operat-
ing. In spite OF reduced net earnings the
country are earning their dividends. with
a comfortable balance 10 the credit OF profit
and loss account, and from current indica-
tions there is no reason TO assume that the
results In the new year will fall below
dividend requirements. Railroad officers
believe tiat the Interstate Commerce Com
mission will allow a somewhat higher level
OF freight charges, and they also believe
cfif ffTf ed
under the new railroad law, which gives
TO the commission enormous power, event
ually will help both the railroads and the
shippers. One OF the most important de-
velopments Of the year was the enactment
OF President Taft's railroad bill. While the
merits of this bill are not yet fully recog-
nized by the general public, it Is safe TO
say that the time will come when the rail-
roads and the travellisg and shipping pub
lie will nnd that their mutual interests are
being well served by the closer regulation
Of the railroads by the government.
On the Stock Exchange prices declined
in most months of the year. On December
81, 1863, the leading railway securities closed
at an average price OF 1904 and'the CHIEF
industrials at an average price OF s9.O5,
while AT the end OF 1910 the average price
Of the railroad issues stood at ia and the
industrials at 50. Efforts 10 bring about
an active advancing market in the last six
months OF the year resulted in fair ad-
vance from the low prices OF July. but
following the Democratic victories in No
yen1ber the general course OF quotations
was toward lower level. II is interesting
70 note that the success OF the Democratic
nrTd dGCl
ing values on the Stock Exchange. Al
though Wall Street voted the Democranc
ticket last fall owing 20 silly antagonlsm
10 former President Roosevelt, II dld not
have the courage 70 buy stocks following
the defeat Of the Republican party. Inc
volume OF business on the Stock Exchange
in 1910 was represented by upward OF IoS'-
600 600 shares, compared with a totsl OF
a17 81 .255 shares in 1909, and by bonds 10
the par value of approximately s23'p"'""
against 81, ,SoS, ,299 600 in the year before. Inc
heaviest daily total in stocks was l'oo4'i nos
shares IN January, while the lowest daily
total was lc9 go shares, on December -5.
In the last few weeks of the year there was
q better demand for bonds, but an aoso-
IuteIv lifeIess market for stocks.
While q bull movement had been predicted
for the FIRST month Of the new year, quota
tions steadily declined TO February l. and
throughout the second month and succeed
,nz months 10 July IS the tendency con-
tinrad in the direction Of lower levels.
Liquidation in all markets was reported IN
,ba 6rst half of the year, and while there
was some recovery in the last six months
the general level OF market values on De-
cerber 81. 1910, was well under that re-
norted al the sans time In the preceding
year. with the exception OK quotations IN
,he cation market. Cotton prices tended
,owa,d higher levels from January to
..a 6rst week IN September, when the
.,sn,. sold al the highest figure since 1873.
ar % cents a pound, or 800 bale. This
nrice cou,pared with 81 % a pound in Civil
Var times. The high price for cotton was
brou1b, about by actual trade conditions
md hv III. operations % the most success
f,,I huII marty ever known in the history
~ ,he cotton trade. In fact the bull
c,ioua was 80 successful In its transactions
that the federal Department Of Justice an
uounced grand Jury inquiry into the op-
eratlons Of the cotton combination, with
view 10 prosecution under the Sherman
antitrust law.
There were few important, or what may
be called spectacular. movements on the
Stock Exchange In the year Just closed.
Early In January there was further sharp
decline in the Rock Island issues following
the Rock Island manipulation OF December,
1903, while there also was a startling slump
in Columbus and Hooking Coal and Iron,
which was accompanied by the failure OF
several Wall Street houses and the pro-
mitigation by the Stock Exchange authori-
ties of new rules Of trading, which were