The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-10-09
union PACIFIC
LEADS ASLUMP
Disgust Over Inaction on
Melon Matter Leads to
Heavy Selling.
STEEL UNDER PRESSURE
Railway Common, SO Bid-F. A.
Vanderlip Before Senate
Committee.
BY 1. A. FLEMING.


leaders, with Union Pacific, a good 10
per cent dividend payer, and not likely
to pay any less, unless a melon is cut.
setting the pace with a net loss at the
low of four points. and from this there
was no recovery worthy of mention.
1t was not slump caused by the en-
actment of the tariff bill. nor yet by the
probable enactment of the proposed cur
rency legislation. 1t was a break due
entirely 10 the dawning theory that the
Union Pacific Railroad directors. under
the wise and cautious advice of Judge
Lovett, would hold on to the millions
received from the sale of Southern Pa
cific stock, retire a number of bonds, or
Place the amount where il will be of use
when the rainy day" on the Union Pa
cific line comes along.
On this theory of division the bulls
advanced the list some weeks ago. carry
irg many trailers with them. On that
advance the men on the inside distributed
much high-priced stock.
Every day is but a repeater of the
Previous one Will the Union Pacific
cut "a melon? Will the tariff put the
Steel Corporation out of business? And.
not waiting to test the tariff. not wait
ing till the end Of the probabilities on
Union Pacific the bears jump the
market. and. support being one of the
missing things these days. succeed. Blu;
the bears are not overly anxious to take
III their plbLlS- lutN are not lIe SGdfN
shorts Of old. and will have to be well
whipped one Of these days by a quick
turn on the part of the bulls to make
them behave.
Heavy short Line.
Technically the position Of the market
is much better than at the opening of the
week. The short line is enormous and ex-
tending daily. There was some little
prOtit-taking. hut it was so little that
Union Pacific closed at the low and Steel
common but 3-S better.
OF course everything else sympathzed
with the weakness in the leaders in lesser
degree. the average reductions being but
little more than point. with some 1-2a2
point declines, and few stocks that stood
up under the rapid-tire selling movement.
Union Pacific. which closed Tuesday at
Ia IA. was low at lJ5 II Steel under
steady hammering dropped points to
- ~ and came back TO - IA only Read
ing lost is after a 1-H recovery. Cana
dian Pacific dropped to II IL. a Is loss,
and recovered II of its loss. Lehigh
. Valley was points of; Nipper and Penn
sylvania. 81; Louisville and Nashville,
-: St Paul -; Copper a point and
many stocks, teO numerous to mention.
l. point.
1t WAS great bear success, and the
short line is sufficiently large to turn the
tide the other way without much trouble
should the fatted bears make any effort
To take profits
An announcement 10y the Union Pacific
tuat melon money would be used to re-
tire bonds would he the best kind Of a
hrll argument-and the list needs one.
The Steel Corporation is doing business
at the old stand and will not shut down.
tariff OF no tariff. but will give opponents
fight for their business.
Local Securities.
Hallway common hass not shown on the
sales sheet for several days, but it has
steadily developed strength. Reports are
on the street Of excellent earnings, es-
umotes Of lIl2a12 per cent being made
NJ the annual earnings applicable to div
blends on the common stock. The best
hid Yesterday was IS with none offered
UIdtr -.
Railway preferred was the active
Ladder, hut al that but SiNty-rve shares
were traded in. with considerable jockey
ing and more or less evidence that only
Investment buying is going om in this
stock, the pTic" being @hs. by eiThts TO
49,.
other local securities were very quiet
and were little better than nominal. Cap
tia! Traction is bid. 1l5Zs asked: Gas
E'iaS52i. There is a quotation practically
daily on Oh. re for Georgetown Gas, 81
lid offered at IN. a number points below
neglected. District. III hid. lIO asked
An inquirer asks for a quotation on
MuHSey Trust Company. The stock of
tn" trust company has not been listed
here. Stock was recently offered as low
as o.. The last Baltimore quotation was
offered At par. 1t is understood the COM
pany is increasing its deposits quite
rapidly.
=. 4. NnnderIip "a Witness
Frank A. NanderIfp. president Of the
National City Bank. was a witness before
the Senate committee on the proposed
currency bill yesterday afternoon. He
found both good and bad features in the
measure from his viewpoint and gave
assurance to the committee that a panic
would be out Of the question with this
measure in force.
Mr.. Nanderlip told the Senate Banking
Committee yesterday that he Endorsed
many important features of the admins
tratiOn currency bill. Mr.. Nanderlip. how
ever, criticised adversely certain points,
notably the independence of the regional
reserve banks. the character of the note
issue plan, and the section compelling
al national banks to become members
If the proposed system.
Aside from those objections. however,
he found many excellent qualities in the
administration plan and took issue with
many bankers who have criticised ad-
NeFSely dlHerent parts of the Dill.
repetition of the panic of 1907 from
such causes as brought it about would
be impossible under the proposed banking
system, said Mr.. Vanderlp. He declared
that the call loan market would be
greatly minimized in importance under
the new plan and that hundreds of mill |
lions of dollars now used for call loans
on stock exchange collateral would be !
turned into commercial channels.
Mr.. Vanderlip's objections were en- |
phatic on certain points. He declared |
the new Treasury notes guaranteed by |
the government would find their way |
into the reserve of non-member banks |
and ultimately no elasticity would be !
added TO the volume of currency He |
thought there would be no incentive I'M |
der the new law to retire the present |
bond-secured national bank currency and |
therefore there would be little room for !
the proposed issue of Treasury notes.
The New York banker advocated a !
single bank in place Of the proposed |
twelve regional reserve banks. The ai- |
ministTation bill linked the twelve re- |
gional banks by forced loans" That |
plan, he declared, was obnoxious. He