The Washington times., 1911-08-20

continued in the security market OF th'
| week, but II was of smaller volume
proportionately than during the preceo
ing interval The conveyance OF actiV'
ity upon relatively few issues showed
clearly enough that very much OF the
selling was of professional origin As
an illustration take the three active
issues, Reading, Union Pacific, and
| Steel common; on Monday these three
contributed $4,000 to a Total of 7S2,42
shares, or about 63 per cent; Tuesday
| 2S5,600 out of 433.1S5 shares, or 66 pei
cent; on Wednesday, COS, 400 out Of 90,-
s75 shares. or 81 per cent; on Thursday,
512, 200 out of SO4,045 shares. or a per
cent. and on Friday, 299,l0O out Of 456, 800
shares, or 651a per cent.
Such a close concentration of business
as that indicated by the above figures
is an unmistakable evidence Of profess
sionalism, for II many miscellaneous
persons were forced to liquidate it is in
conceivable that they should march up
with the regularity of soldiers and
dump an almost unvaryirig quantity OF
| securities each day, such securities be-
ing limited to but three issues out OF
the many hundred listed upon the ex-
change. Men with long stock who de-
sire to sell, or who are forced TO sell,
are not likely to communicate that tact
to associates who are long of the self
same securities. To do so would be
to incur unnecessary losses.
Heavy Professional Selling.
The professional traders, on the con-
trary, are very much like sheep when
1t comes to market operations. For
months past their activities in Reading,
Union Pacific, and United States Steel
common have been notorious. The only
apparent difference now is that the
traders have been as bearish upon
these issues recently as they were bull
ish previously. This is not saying that
there has been no important nquida-
tion in these securities, for such is not
the case, particularly with Union Pa
cific, the weakness of which was the
chief feature of the week, but it seems
evident that with such liquidation
there has been an ever-increasing vol
ume of purely professional selling, and
the market showed on occasions that
this was being overdone.
Up to the close Of Thursdays session,
the opinion was almost unanimous,
among brokers, that until the mystery
of Union Pacific's decline was explained
one could not look for confident buying
operations. Despite the recovery that
followed upon Judge Lovett's statement
quarters, for Wall Street is in such a
frame OF mind that 1t cannot bring it
self to believe that the stock OF the
acknowledged market leader, Union Pa
cific, could decline as much as twenty
six points in about three weeks without
some serious cause for the weakness.
Union Pacific Mystery.
The most generally accepted theories
have been those to which Judge Lovett
gave specific denial, namely, that there
were serious dissensions within the
board of directors and that a reduction
of the dividend was impending. Though
the labor situation, in the case Of the
Union Pacific, leaves much to be de-
sired very little was heard of that as
a cause for liquidation, and very few
persons credited the report which met
with a prompt and emphatic denial, that
Mrs E H. Hartman had reduced her
holdings in the company. One thing
which the Street in general will not ac-
ing interest associated with the proper
ty that the entire decline has resulted
from short selling.
The entire financial district has de-
voted a great deal of attention to the
so-call lied Union Pacific Mystery" dur
ing the week, and II seems to be no
nearer a satisfying explanation at the
end than II was at the beginning Of the
interval. Very many persons believe
that the influential selling of the stock
look pace months dBO, dIiu lildI SLdI
had probably been borrowed against
long stock sold, giving the impression
that the transaction represented specu-
lative short selling instead OF actual
distribution of long stock. But as
against this an influential director has
stated that he IS familiar with all the
important Union Pacific holdings and
that all of them are intact.
An Altered Situation.
raoOr-
nizes that Union Pacific is not as well
equipped market-wise to resist an ag-
gressive bear attack as II was when
Mr.. Hartman and Mr. Rogers were
alive, and, aside from that, the Stand
ard OIL party, which for long inter-
val was a powerful factor in the COM
pany's affairs, is holding entirely aloof
from the market. 1t Is very well known
that the leading members Of the Stand
ard Oil group were the first of the i'm
portant interests to iquidate, a year
ago last February, when the market
first became disturbed over the attitude
of the Taft Administration toward cor
porations. According to the general i'm
preston in Wall Street the party never
reclaimed these holdings and certainly,
in private conversation, leading mem
bers of 1t have never expressed any
sympathy with the recoveries which
have ensued since the slump in January
and July, 1910.
Wall Street, Of course, longs for a re-
turn of the old days when men like Mr.
Hartman, Mr.. Rogers, and the Stand
ard Oil group took hold of things, and
many brokers believe that Union Pa
cific> has suffered recently from an ab-
sence of Just such support as these in
terests were accustomed to give 1t at
times of disturbance in the past.
Throughout the whole district, for in
stance, one hears repeated complaints
Of the lack of buying power, and COM
mission houses have made no secret Of
the fact that the decline in prices has
brought no new business into brokers'
offices. This is most unusual after a
break of such extent as the market has
experienced.
The Unresponsive Public.
The failure Of the public to make any
general response to the lower level of
securities renders many observers doubt
full as to whether the late recovery in
prices Is likely to be very long sus-
tained or proceed very much further
The reversal Of form in the market was
accomplished without pronounced change
in sentiment, and it was unattended
The majority of observers regard the
upturn as indicating "a hard spot in the
market" due chiefly to temporarily
oversold condition, and to the activities
of certain professional traders They
fear that after the more tirnid bears
of certain professional commitments
that the decline will be resumed, owing
to the absence of buying power, the dis
turbance Of sentiment, and the lack of
influences. including a force
full constructive leader.
hall %