Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-08-28
Further Decline in Stock
Prices Puzzles Many.
When Summed Up, Il Seems
To Have Variety Of Causes.
Railroads Are Retrenehlng and Steel
And Copper Are Quiet.

New York, Aug. 27.-Renewal of the
fall in prices at the Stock Exchange
last week brought with 1t some fresh
rumors of special causes and sources
for the liquidation. AT the same time.
the more fundamental grounds for
the decline began to emerge in the
progress of events. Less attention was
paid, there, to conjectures of direc-
tors Disputes liquidation of estates.
the dissolution of the great industrial
enterprises under decree of the sii-
preme court and similar grounds for
the persistent selling which has oe-
CURED The deterioration in the grain
crops, preparation by the banks to fl
nance the cotton and grain movements
pressure from foreign financial eenters
caused by political disturbances. fur
Their check to this country's trade re-
wal and the development of contro-
versics between the railroads and EN-
playes took more appropriate places
in the calendar of causes. Ayse=
A policy of reduction of the work.
ing forces took shape on the part OF
various important railway systems.
The extent to which this movement. Is
to become general remains obscure.
The movement is sufficiently wide
spread however, to indicate the neces-
sity for retrenchment and to point to
the conclusion that business Is slug
gish AMI that confidence is lacking In
its revival. The consistent rulings by
the Commerce Commission against the
contentious of the railroads and in ia
yer of reductions go to increase. doubts
of the earning capacity of the compa-
MES. The likelihood that they are to
be confronted with labor difficulties
Increases the sentiment. The contrast
of these conditions with earlier ex-
pectations is shown by the fact that
the Interstate Commerce Commission
in refusing the petition of the rail-
roads for a general advance In freight
rates predicted in February that by
July fsst earnings of Western roads
would reach the high point Of the pre-
vious year,
The accepted authorities in the steel
and copper trades report similar feel
ing of doubt in those trades over the
future. Current production in the
steel trade is outrunning new orders,
and furthur cutting of prices of finish-
ed steel is reported. General comn1er1
cial lines seem TO show activity better
sustained, and more confidence In bet
terment is reported.
A professional origin is suspected for
much of the selling of stocks, owing
to the great congestion of activity IN
the ceBters of speculation. especially
Union Pacific. United States. Steel and
Reading That congestion is signifi-
cant, undoubtedly, but the enormous
loan contractions by the New York
banks which has accompanied the de-
cline since the first Of the present
month goes to show liquidation of long
accounts in abundant proportion to
short selling by bear operators. The
extent of the decline. the relation of
prices to dividend returns in many
cases and the added strength OF the
banking position achieved from the
liquidation are recognized as sufficient
to meet severe demands. Any consfd-,
erakle further decline would be re-
garded as symptomatic of still un-
disclosed factors adverse to prosperity.