The Washington herald., 1907-12-10
STOCKS AGAIN HEAVY
Erie Statement and Coffee
Depression Cause.
SHARP FALL IN DISTILLERS
Reduction of Dividend Is Impend-
ing, and Similar Action Expected
to Be Taken by the Western Union
Directors - Feeling General that
Conditions Are Again Normal.

New York, Dec. 9.-The financial news
to-day was unquestIonably unfavorable
to the stock market 1t was not strik-
ingly adverse, nor was it adverse at all,
except to those whose interest in the
market is largely a matter Of daily fiuc-
tuations in prices, but It was, neverthe-
less such as is ordinarily regarded in a
strictly speculative sense as being against
value
1t became known late on Saturday aft
ernoon that IN view of the continued de-
preston in the copper trade the direc-
tors Of the Amalgamated Copper Com
pany had ordered a further curtailment
OF operations involving the shutting down
of all the company's mines with one or
two exceptions among the Boston and
Montana group.
AT the same time the very unfavorable
earnings statement of the Erie Railroad
Company for October was published.
showing a decrease in net for the month
or 100000. while the reports in the morn
ing newspapers to-day of the looting of
the California Safe Deposit and Trust
Company. one of whose officers was the
vice president Of the Western Pacific
Railroad Company-the extension of the
Gould roads 20 the Pacific COast-made
naturally disagreeable impression.
Railroads Are Strong.
As soon as business on the stock ex-
change began it was obvious that irregu-
lar tendencies were asserting themselves.
Many of the leading railroad shares were
strong, particularly the Northern Pacific.
Union Pacific and Reading secks. but
the industrial list as a whole was weak
Large selling of Amalgamated Copper
proceeded upon the not illogical theory
that the Interruptions of the company
business rendered a further deduction If
not an entire suspension Of dividends
upon the company's stock inevitable. and
the decline in the stock Immediately af-
fected sympathetically the American
smelling and Refining shares.
A perpendicular fan OF 51z points. which
occurred in Distillers' Securities stock
heightened the belief, already well-nieh
general. that a reduction Of dividends
upon the stock was Impending; while a
similar decline in Western Union tele-
graph stock received a ike EXPLANATION
Ihe western Union directors will. II is
understood, take action tomorrow In the
matter OF their quarterly distribution
should the dividend be cut or perad-
venture wholly passed, or paid IN scrip
IL would be an event of no small i'm
portance in investment annals OF the
country. There are few stocks IN fbe
security list which are concentrated
among small holders throughout the
country particularly in the State of New
York to the extent that are the Western
Union shares.
Call Money Is Stronger.
Finally the premium on currency stiff
ened decidedly to-day. and the call
money rate which had remained suspi-
ciously strong throughout the morning
hours. rose in the afternoon to 20 per
cent There was much wonderment as
TO the reason OF this last named pheno-
menon, although its precise cause ap-
peared TO be a calling of loans by a
prominent banking institution.
While the main factors operating, in
the market to-day were in detail as de-
scribed, a general feeling seemed TO be
exerting itself in the financial dIstrie,
that. inasmuch as a recovery in the mar
ket had already made substantial prog
ress. and that, as the feeling Of appre-
hension prevalent a few weeks since
had entirely disappeared it might be
well while still maintaining an attitude
Of general optimism, TO give more at
tention than had recently been paid 10
the probable extent Of the business re-
action proper in the country that Is now
plainly going on.
Certain railroad and industrial COM
panies have already reduced or deferred
their dividends. Other companies are
likely TO follow the same path As Jan
uary approaches there will be a baianc-
ing of accounts involving the usual call
Of creditors upon debtors; and 1t win be
interesting 70 know how a similar process
will affect financial concerns in coun-
tries other than our own. Cables tell
ing to-day Of a financial crisis in Chile.
and Of further business troubles IN Ger
many did not become available here until
after the close Of business.