The Birmingham age-herald., 1907-03-05
VIOLENT BREAK IN
 STOCK MARKET Every Appearance of Wholesale
 Liquidation in Force
  RUMORS CAUSE GLOOM
Suppositon Gained Ground of Heavy Liquidation of Investment Or ders-Reports of Steel
 Orders Cancellation.

New York, March 4.-Prices broke with violence in the late dealings on the stock market today, and the market gave every appearance of wholesale liquidation be- ing in force. The early action of the mar ket gave an impression of bear attack. There was a moment of strength in a few issues at the opening, and there were points of resistance in the early decline, but the whole list was swept into the downward movement and the decline gained impetus as the futility of efforts al support were perceived As stop loss orders were uncovered on the decline, the supposition gained ground also that there was some large liquidation of what are called investment orders going on. The re- ports caused a gloomy feeling over the whole industrial and business outlook. They were accompanied by some rumors calculated to deepen the gloomy feeling, but which were without confirmation. For instance it was affirmed that efforts were being made to secure the cancellation of some of the orders on the books of the United States Steel corporation for future delivery, owing to the disinclination of the contractors to accept the deliveries. It was asserted also that the Pennsylvania railroad was seeking to abrogate some of It's orders for freight cars, prompted by q revised view of the outlook for traffic.
 These reports were without confirmation on inquiry in official quarters. It was heralded abroad on the other hand that a powerful bear party had been formed ln the speculation, made up of men pre- Viously influential in the steel and allied industries. The supposition of this leader ship induced some large following on the selling side. The earliest show of pro- nounced weakness was in the Hill stock with the Hartman stocks in sympathy The rapid downward course of these stocks gave rise to talk of liquidation of Hartman holdings of the Hill stocks and of market reprisals for grievances be- lieyed to grow out of the Hartman inyes- tgation, or some of the information fur nished for the purpose of that investiga- tion. Another source of weakness was the alleged needs of various corporations for new capital and the high rates they would be obliged to pay for it. Reports of net earnings of railroads for January coming to hand showed the inroads resulting from the increase in wages that went into ef- feet on January 1. This effect of the growing cost of operations of railroads, and the difficulty of securing capital for the betterments which alone would await to increase cost, brought into considera- tion naturally the integrity of dividends. A number of preferred stocks on which the dividends have a comparatively nar- row surplus of earnings to depend on made precpitate declines on comparatiye- 1y light dealings.
 The cumulative effect of these consid- erations and the growing weakness of the market had a demoralizing effect on the market, and the fall became rapid. The early resistance was in the department of specialties for the most part, and amongst the industrials Reading was strong and seemed to be accumulated with a persis- tence into the afternoon. The coppers and United States Steel also were late In yielding. London sent higher prices at the opening, prompted by a favorable view of the passage of the Aldrich currency bill.
 This seemed to be without effect in this market. Large coming shipments of gold from the Bank of England to Brazil were reported. Some uneasiness over the indus trial outlook was reported from Berlin.
 Money here grew easier on call with the progress of the liquidation, but time loans were strongly held. The Saturday bank statement was believed to indicate a shift in the currency movement In favor of the interior
 The closing was feverish and unsettled, and the rally due to covering of shorts was poorly held.
 Bonds were weak Total sales, par value, $1,I4.Ooo.
 United States bonds were all unchanged on call.