New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-28
FINANCIAL MARKET
Bear Traders Looking for Lower
Prices for Securities.

low levers TOT tIle year III ieNcii' ""'S'
and according to the opinion Of the ag-
gressive bear element still lower quota
lions will be recorded before anything In
the nature of a bull movement develops.
There has been important speculative
liquidation. The idea that the downward
movement is due entirely 10 the opera
tons Of professional traders is wholly
disproved by the heavy decline that has
taken place and by the refusal OF the
market TO rally when general technical
conditions apparently have warranted
sharp upturn. Real stock has been
thrown overheard owing TO the financial
requirements of holders who have had
speculative commitments to protect and
to the steady reduction In market values
that has compelled heavy liquidation on
the part of operators with small f1nan-
cial backing: A writer for THE Wall
Street Journal" says that while there is
a large borrowing demand for stocks, 1t
is unsafe in the light of past experiences
TO conclude that "all Of this represents
a short interest" The largest selling
has been carefully disguised and In or
der that the source Of this movement
might be concealed sellers apparently
have borrowed stock for delivery in
stead of delivering their own certificates.
When, as THE Wall Street Journal'
says, certificates in influential names
make their appearance in the Street,
ha Loo
the selling movement is over. So far,
however, the telltale names have not
been disclosed. and the absence OF IN
formation regarding the real sellers nat
urally is one Of the reasons for the con-
tinued uncertainty.
Disappointing crop reports, disturbing
political developments and unrest in
Western railroad circles naturally en-
courage bear activity at the present
time, but there is nothing in the factors
named that warrant investment liquida-
ton. Sales of Union Pacific have been
enormous in the last few weeks. and the
movement has been helped along by bear
traders, who have been working over
time in their efforts TO create the I'M
preston that labor leaders in this coun-
try are concentrating their activities
upon the Union Pacific Company In or
der TO bring about a widespread strike
among the American railways. The
Union Pacific has adopted a policy of
retrenchment for the future benefit OF
its employees and its stockholders, and 1t
is quite probable that the possible dec
laration Of a strike on the lines Of this
+ company and on other Hartman roads
Will be fought to finish by the well or
ganized management Of the Hartman
properties. IT is a poor time for de-
mands for higher wages and for de-
mands for the recognition OF the So
called rights of the unions. Wages
throughout the railroad world have been
increased in recent years. while in the
same time the transportation companies
have been compelled to meet other in
creased operating costs without the priv
ilege of advancing their carrying rates
for freight. And just now there is so
much uncertainty over the course OF gem
| eral business in the next two years that
corporations naturally are not inclined
TO increase the compensation of their
employees.
Officers Of the railroads throughout
the country believe that in the event of
strikes on various lines the interference
To traffic movements will be Of short
duration owing to the fact that almost
one-ouarter of the country's railroad
abor is now idle. which suggests that
places of striking employees could quick
w he filed with but slight inconvenience
70 the shipping and travelling public.
Under present conditions the railroads
are in position TO cause extensive
liduidation in the labor market. Labor
leaders evidently believe that because
the Union Pacific Railroad showed up
ward Of II per cent available for com
mon stock dividends in the last fiscal
wear the company should pay more TO
IFS employees. AS matter of fact the
company earned less than 9 per cent on
IFS common stock from transportation
operations, the balance of the amount
available for dividends representing in
come from investments. and In TINS con-
rection the point is made by competent
observers that the Union Pacific Com
many vould make no mistake by liqui-
dating it's holdings in other companies
and go back 10 the old theory that
railroad company should connne us
onerations to the transportation business
and not to speculation in stocks. The
late Edward II. Hartman was big
sreculator I'm stocks in the interest or
the Union Pacific Company. Fortu-
natelv. his deals turned out prof1tably,
hut that is no reason why his successors
should attempt TO make the policy per
manent. If the Union Pacific Company
should Houidate it's holdings Of securi-
ties Of other roads at favorable mar
ket opportunity and distribute the pro-
Goods 10 it's stockholders the latter
would lose nothing by a readjustment
NJ tbe dividend to the actual earning
power OF the road.
Exchange at interior points on New
York is beginning to exhibit declln-
ing tendency. and it is not unlikely that
substantial Withdrawals Of currency
from this centre soon will he made incl
dent 10 the gathering and marketing OF
the crops. A certain amount Of money
already has been sent TO the South, but
so far the Western banks have not
drawn 10 any extent upon their balances
here. There is at the moment gen
eral absence Of demand for accommoda-