The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-06-15
PRICES
BREAK SHARPLY
Belief in Wall Street That
Strong Bear Clique Has
Begun Campaign.
FACTORS IN DEPRESSION
MANY CAUSES CONTRIBUTE TO
MARKET CONDITION.

New York, June 1.-THE sharp break in
tOday's stock market was the natural con-
sequence of the market conditions for sew
eTal days past The failure of the govern
ment crop report on Monday TO sustain
prices evidently proved a great disappoint-
ment TO the speculative operators for the
advance The decline since then has
brought a realizing sense of the difficult
ties of securing profits in the present mar
ket. Previous success in advancing prices
served TO OBSCURE the narrow limits of
the market So long as selling was with
held and the professional element were
agreed IN buying stocks, the rise in prices
was not difficult to account for
But the events of the week have awak-
ened the conductors Of the campaign to
the dlfflculty of dlspOsing of their stocks
at the higher level to which prices have
been pushed. Disbursement over this
condition undoubtedly prompted good
deal Of selling in tOday'S market. The tor
nation of a well-Organized bear party was
also 10 be perceived In the action of the
market ana nthe attacks on some of the
stocks made Vufnera bic by undue maniD-
ulatlOn OF late. RumOr was very busy
with the supposed identity OF the leaders
OF the new bear campaign, and the for
mldable prestige attached TO some of the
names used by reason Of the smashing
success OF historical campaigns OF the
past made these rumOrS an eVli DOrtent to
The less confident holders of long stock
Among the ranks Of these were some in
accumulated special stocks in pool holding
That there was extensive unloading of
pool holdings today was the current be
LET Reports in some cases had il that
the selling OF this class was due to the
approaching expiration Of the date of the
pools Matters of this character are never
the subject Of exact information, and pro-
IeSSlOnal traders took full advantage of
the natural VaSuenCSS of the reports to
eNagSerate then and diStOrt them, with
the purpose of influencing sentiment ac-
ID u -TtVV AFfT Tl7 nov
bearlnS on values was SCanty, and the
market was affected almost altogether by
technical causes. In the grain markets
the coarse grams were the subject of
some bulllSh speculation which affected
the small grains to some extent in sym
patty. Neither the grain nor the cotton
markets offered any supporting factor for
stocks, but neither was there anything in
the crops news to account for the day.
V eaknesS- Iron trade authorities report
cd some increasing demand for pig iron,
but these reports are pOweTleSS to offset
the influence of the steady supply of
United States Steel stocks which is fed
into the market on every opportunity.
The violent reaction in the price of cop
per i'm London may have been an aggTa-
waiting factor in the special weakness of
ANA lgamdtCd Copper and the fall in this
stock was of large sentimental effect on
the whole list. The same was true of
Reading. owing to the large place held by
that stock in the recent speculation. Bal
timore and Ohio was the only effective
point Of resistance in the whole market.
Its advance was associated with the pol
icy disclosed Yesterday by the PennSylVa-
MIA railroad authorities in raising divi-
dends on subsidiary stocks. But BaIti-
more and Ohio has had its recent divi-
deud increase and failed to bebefit duly
from it. owing to tie concurrent increase
i'm the issue of stock. The falling off in
domestic exports for May. due to the large
decline in the value of cotton sent abroad.
was not a favorable factor, owing to the
large reliance placed upon foreign money
sources for relief from strain the coming
session. The treasury departments call
for return of 100000 on deposit with ma
tiOnaI banks on July 10 was felt to COM
pliCdte the money outlook. On July 1 falls
due the requirement for the second Install
ment of the increase in the trust COM
pany reserves made obligatory by the new
state law. lit is estimated that this will
call for S12O00O00 in addition to the cash
now held by the New York trust COmpa-
MES The violence of the raid on Reading
in the last hour caused the decline to over
run itself. and the scramble to cover
among the shorts induced spasmodic raj
lies. The closing, however, was fevsrish
and unsettled.
Bonds were easy Total sales par value,
s. $4,000.
United States bonds were unchanged on
call.