The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-23
READING LEADS IN
THE DAYS DECLINE
Whole Stock List is Affected in
in Sympathy
FURTHER BREAK ON FAILURE
Trading Joined in Selling of Reading.
Weakness of Market Aggravated BY
Appearance of Bank State
ment-Week's Review.

New York, December 22.-Reading was
aoutely depressed In todays stock mar
ket, and the heavy unloading of the stock
was unexplained by any special news IN
til the announcement of the failure of a
house with stock exchange connections,
and branch office in Philadelphia. 1t is
supposed that some large accounts In
Readings were carried by the house. The
whole list was affected In sympathy, but
to moderate extent in comparison until
the final break in the market after the
failure was announced.
Traders Joined in the selling of Reading
under the supposition that the heavy
speculative liquidation was based on dis
appointment over the failure to raise the
dividend rate on the stock. The Hill
stocks, Union Pacific st. Paul and North
western showed a renewal of the weak
ness which has affected them ever since
the new stock issues of northwestern
railroads was announced.
The weakness of the market was ag-
gravated after the appearance of the
bank statement. All of the expected gain
IN cash was reported, but the meagre loan
contraction was a disappointment. re-
duction of the loan account of less than
half million dollars was regarded as an
inadequate result to be shown after the
painful liquidation which has been going
on in the stock market during the week
The withdrawal of gold from the Bank of
England for Egyptian account was re-
newed. The approach of the critical stage
III the dispute over wages of railroad
yard men in the neighborhood OF New
York was a contributory cause of weak
ness The selling movement effectually
broke up the dizziness of the early trad
ing, which is usual on the eve of holI-
day.
Total sales of bonds, par value, $96S, coo
Speculative holdings of stocks have had
a sharp shaking out this week. and the
Humiliation has afforded some relief to
the money situation and has been reflect
ell in the quiet stock market which en-
sred The great issues of capital by the
northwestern railroad companies have a
foremost influence. the St. Paul issue this
week coming on top of the Great North
em and Northern Pacific issues, and
seemingly with cumulative effect. Those
stocks have been the center of the spec
ulaton and have borne the Drunt OF the
selling pressure.
The threatened aggraVation of the
money pinch as an effect of those Of
ferings had it's share in the influence they
exercised, but the question of dilution of
capital in it's effect on the proportionate
claim of the shares to earnings, was also
taken into consideration. The $l00,000,Oo0 of
new st. PAU stock, the $50 100000 of
Great Northern preferred, and the $4,000
900 of Northern Pacific in the reserve
make a formidable aggregate 1t has been
the general supposition that the terms of
the subscription and delayed issue for the
Great Northern and Northern Pacific
stock were not relshed by the Hartman
interests.
Payment of interest on the subscription
installments as paid with the issue of the
stock deferred for more than a year.
makes the Union Pacific treasury in effect
a lender of capital for the use of its
business rivals 1t is this condition which
gave ground for the supposition that the
Union Pacific holdings of Great Northern
preferred and Northern Pacific We're COM
ing on the market with insiders indis-
posed to support the stocks. 1t was hoped
that the reception of the St. Paul issue
would be more favorable, as being free
from this complication The violent slumI
in that stock, therefore. weakened con
fdence in the ability of the market tC
absorb such heavy capital offerings. Blu
there were complicating factors also il
this issue.
In fact there has been no financial trans
action in New York for many year.