New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-25
BANK STOCKS ON STOCK EXCHANGE
FINANCIAL MARKET
Bear Element on Stock Exchange
still AqureSSiVeIy Active.

Prices for stocks made further progress
Yesterday toward the point at which in
vestment capital will be willing 10 come
into the market in volume. Selling rep
resented heavy operations by the profess
sionaI element on the bear side Of specu-
Iarion and actual liquidation Of bull &C
counts that were unable 10 withstand
the constant pressure against them
while buvine Of stocks sold reflected COW
ering of shorts and quiet accumulation
biz the larger interests, who either may
have bought for quick speculative Dur-
poses or for permanent Investment
Banking interests have been compelled
90 take so much stock il recent weeks
that If IS reasonable 10 suppose that they
will reduce their commitments on all
rallies. There was nothing in news de-
velopments yesterday that warranted
the sale Of stocks but sentiment in spec
ulative circles was bearlsh because Of the
absence Of public buying ana talk OF
labor ubles. and because Of the theory
held in some quarters that tho couutr. is
entering a long period Of business mac
tivity. as a consequence of the inability
Of the Democratic House Of Congress 10
Iegisla.e along sane business lines, agita-
ton by unseasoned politicians against
the corporations that arc giving labor its
best employment and stockholders sub
srautial dividends. and the uncertainty
that must prevail iu business circles
until corporations have adjusted their
affairs TO the Supreme courts inter
probation Of the sherman antitrust law.
The actual volume Of daE-ro-day bust
ness is large because of the needs of a
large population. but few important com
mitments are being made for the future
This countrys resources. however. are SO
great. while the people iu general believe
in moving forward. that sustained erss
of industrial depression are out of the
question. Business MAJ DO relatively
quiet until after tho next Presidential
election. but that will supply no reason
for the sale Of investment securities
Declines IN the DAY ran from = To- more
than @ points. Union Pacific losing net
2I4 after a maximum loss of BIS Selling
OF the issue appeared 70 be based in large
part on the fear Of a strike on the Union
Pacific lines.
The financial strength of tho Union
Pacific company IS based upon its large
earning power and upon its income from
investments. In the last fiscal year tho
property earned from transportation
slightly under 10 per cent on IT'S common
stock while with its receipts from IT'S in
vestments IN other companies IT'S total
surplus after all charges and dividends
on the preferred stock was equivalent TO
more than Is per cent on its junior issue.
s. compilation made by The Wall Street
Journal" shows that even in tho event OF
"a reduction I'm the dividend on the New
York central and Baltimore g. Ohio GO
q Der cent basis. reduction in Illinois
Central dividend 90 O. per cent and the
elimination altogether of the Chicago a.
Alton preferred dividend. tho sum of aU
these developments would not cause an
imuairrneut of Union Pacihcs net earn
ipgs 10 an amount as largo as three
fourths Of ] per cent on Union Pacific
common shares. based on the company
holdings Of the issues Of tho roads
named The very fact that tho Union
Pacific is able 10 earn more than Is per
cent on its stock apparently has been
seized upon by labor leaders % concen-
rate their efforts for the development Of
d Western railroad labor war upon this
company. and IN the minds Of many per-
sons the opinion is gaining ground that
the Union Pacific company would obtain
q better standing with labor and the
Interstate Commerce Commission u f.
would make "a distribution OF It's invest
ment stocks and confine It's operations
entirely 10 the TRANSPORTATION business.
With "a distribution OF It's stock holdings
present shareholders would lose nothing
by readjustment Of the dividend 20
actual transportation net earnings.
Money rates were unchanged yesterday
al this centre. and the Bank Of England
made no change in its minimum rate OF
discount The British institution in it's
weekly return made an exceedingly
strong showing