New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-07
FINANCIAL MARKET
Stock Traders Are BeariSh, but
Fail to DlSIodge Invest
ment Holdings.

me pedilSH duu coIilmiSSlon mousse oper-
Gtors who in recent days have been fol
lowing their head have been able 70
make small Profits on the short side o
speculation. There is. however. littl,
commission house interest in the mar
ket and no Indication Of a revival Of &C
tive public buying in the immediate fut
ure Most OF the so-called big men ar
out of town end are giving little heed 70
Wall Street but enough support de-
velops whenever prices are forced down
10 any appreciable extent TO prevent
anything in the nature Of disturbance
Although general business condition:
are slowly Improving capital is still
somewhat tirid. owing TO the uncer-
tainty over the final outcome Of the re-
organization process that various cor
pora tons must undergo in order 70 work
in harmony with the Sherman antitrust
Investigations OF different large indus
trial concerns. Investment business is
much lighter IN volume than reported
earlier in the season. new financing OF
a large scale has been halted and bond
houses as q rule are carrying a rather
large amount Of recently issued securi-
ties for which there Is no immediate
widespread demand
Weakness in the prices Of the securi-
ties OF the Standard OIL Company and
the American Tobacco Company and the
passing Of the dividend on the common
an uiasettling effect upon the general
market, but the stock brought out as a
rule las represented small holders who
would not be able 20 carry their &C
counts through the period Of active hqui-
dalton which bear traders are predicting
ton of stocks. but Il is quite evident
thai in the event Of materially lower
quotations idle capital will be attracted
10 the market. The present technical
position Of the market is stronger than
II was a week ago Stocks sold have
gone into good hands. and moderate
sized short interest has been accumu-
lated The actual amount Of stocks
available for speculative purposes is not
large. Brokers are not carrying big
lines on speculative account, the reason
for which may be found IN the heavy
"a aH,fT 1-c
OF our larger corporations. In the last
I'VE wears stocks have been moving into
the hands OF investors. a large proper
ton Of whom are people Of only moder-
ate means. Stocks har been removed
from the Street. and in the same time
the amount Of new capital created has
been comparatively light.
In 1906 the United States Steel Cor
poration reported approximately 5000
stockholders while at present its books
show upward Of 10000, an increase Of
81 Pc cent. IN the same period the
American Telephone and Telegraph
COMPANY has enjoyed a gain OF 131 per
cent in the mum Der OF holders, the New
York Central a gain OF 100 per cent, the
American Sugar Refining Company q
gain Of IS per cent. the American Smelt-
ing and Refining Company gain Of l32
nor cent snd the General Electric Com
Danv gain Of 90 per cent. The Wall
Street Journal" IN a comprehensive re-
view Of this subject. shows that III
orpanies al present have 7S7.249 share
holders. an increase Of 175 per cent in
the number since 1901 and an increase
NJ 70 per cent since 1906. an exhibit
which goes 70 refute the idea that cor
,,o-ations are owned exclusively by
bankers. svndicates or individuals. The
pubHc IS the real controlling interest
and since 1907 the stocks OF the larger
oorporations have& steadily drtfted from
speculative sources into the strong boxes
NJ investors IF the constant harassing
~ corporations by politicians should IN
settle confidence on the part of invest
ors stocks would tend 70 GO back 20
speculative quarters at lower prices
Fortunately. Congress is expected 70 ad-
iourn this week
Underlying conditions ara sound. and
the conservative interests do not believe
that investors will lose confidence IN the
future u the country because Of political
agitation against the so-called trusts
our crops are making favorable prog
ress toward early maturity, and the out
look for cotton promises the largest har-
vest on record The country's export
trade is heavy our credits abroad are
large enough 70 warrant the expectation
If gold imports II money market condi-
tons should require assistance Of this
sort. and the iron and steel industry,
which is the real barometer Of business,
is gradually expanding. The United
States Steel Corporation is now working
AZ rs per cent OF its tngot capacity, as
compared with SO TO So per cent In the
second quarter Of the year. and accord
ing 70 the statements made by we'll in
formed steel men the industry IS In
stronger position than at any time since
the early part OF 1911. with al indics-
tions pointing 20 a healthfuI growth in
the months 70 come. Railroad earnings
are beginning 70 improve. and II Is ex-
nacred that the transportation companies
soon will become most active factors IN
the market for finished steel products.
Time money rates are frmer than re
Gently reported. and bankers believe that
in the rest Of the year conditions will be
much more in their favor even without
any, marked expansion in the volume OF