The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-23
LIQUIDATION GOES ON
Hill Stocks and Reading i'll
Heavy Declines.
BANK STATEMENT PROVES GOOD
However, It's Effects Are Counter
acted by the Leo FaiIure-Car Con-
tributes to the Weakness Of Ger
tain StOcks-Other stocks Drop.

New York Dec. 22-After two days of a
rallying movement in prices which was
not. admittedly. of an overspirited charac-
ter, liquidation broke out afresh to-day in
the security market, centering as it has
done throughout the week, in the Hill
group OF stocks
The price OF the Northern Pacific and
Great Northern shares fell So and Z.
points respectively, reaching the lowest
level yet touched by them since the recent
decline in the market began.
The Great Northern Ore certificates held
more strongly. their closing price for the
day still being very considerably above
the low record for them made last
Wednesday. St. Paul common fell %
points. Union Pacific 2l4 points. and there
were corresponding declines in other lead
ing stocks.
A feature of the market was the heavy
selling of the Reading common shares,
which broke from I39. their closing price
yesterday, 10 1879, and il was to the evil
dent pressure of liquidation in this one
stock, and 10 the announcement shortly
after the conclusion Of the first hour of
business OF the failure of a stock ex-
change firm, that the general results of
the day were attributed
The assignment Of the stock exchange
house in question was commonly regard
ed not as of great, but Of considerable inn
portance. rs the firm did "a general com
mission house business had several
branches, and was in good standing in
financial circles. There is little doubt
that much of the selling of stocks to-day
was directly on account of this failure.
Fail tn Increase Dividends.
The heaviness OF the Reading has been
noticeable in the market ever since the
refusal of the directors of the company
at their meeting "a few days ago to in
crease the dividend distribution for the
common shares. As a merely 4 per cent
dividend paying stock, the price Of Read
ing common is, of course. even at its pres
ent level disproporti0nately high.
The earnings Of the company. moreover,
as reported for the present year. have not
made very encouraging showing. on the
other hand, il is well established that
considerations of this kind are not those
by which the Reading property or its
future value should be judged. II is
known that the company possesses large
undivided equities. and Is continually MAX
ing sO-Called concealed earnings OF va
rious descriptions. The stock is so closely
held however, as TO make advances or
declines in its prices inevitable upon "a
limited volume of actual buying or sell
ing.
\ matter Of some weight in the market
during the day was. of course. the threats
of "a tying-up Of the business at the local
terminals OF some of the trunk railway
lines by q strike of the yardmen for
higher wages But il was still the pre-
vailing belief that the difficulty would be
adjusted.
The bank statement to-day appeared 10
exercise very little influence in the spec
ulative trading In the market The cash
held by the bank increased S6.126.G00. or
about as had been looked for, but the
surprising item of the return was a de
crease Of only $4,000 in bank loans when
much larger reduction in loans had been
looked for in view Of the marking down
during the week in the prices of securi-
ties. The bank surplus was restored TO
$.2Se 800, which is not an extraordinarily
low amount for this time OF the year
Week Ends in Uncertainty.
The week ends naturally with an uncer-
tain, although by no means pessimistic.
feeling on the part of habitual operators
in the market. Business in the country
everywhere continues TO present q scene
Of unriydled prosperity, and although
various exigencies have undoubtedly
CAUSED recently the selling of "a moderate
quantity OF stocks. the ruling opinion is
that all this only represents a process of
temporary adjustment of financial opera
lions that can do no serious harm.
OF actual developments during the
week. aside from the ST PauTs issue of
stock. and other matters that have al
ready been sufficiently discussed in these
columns one that has excited as much
interest as any other. perhaps. has been
the complaints Of d car shortage, par
ticularly In the West, and in districts
where d species Of coal famine has been
felt
Heated charges Of conspiracy Of a hold
ing back OF cars for Interior purposes,
and 50 forth. have been made By the peO-
pie in these localities, which are for the
most part absurd on their face. The only
criticism that perhaps can be brought 10
bear against the railway managers is
that there may have been to certain
extent an overlooking recently Of train
hauls, which would naturally cause a
slower movement of trains and a con-
gestion of freight traffic but reason for
this in turn lies in the unprecedented
amount Of traffic that the railway lines
have been, and are, called upon to take
care of.
The bulk of responsibility for the trou-
HE Of this sort must rest in every inst
mind upon the shippers rather than the
railroad companies. The companies have
striven 10 the utmost of their financial
power in the last few years 70 procure
cars and engines. to build additional
tracks. and 10 secure larger terminal
spaces, while shippers have fallen into
the habit Of conducting their business on
a hand-tO-mouth basis. which calls for
a constant replenishing of supplies and
an oyertaxing of railway facilities.