The Washington herald., 1907-03-08
STOCK RALLY BREAKS
Advances Al Declines Not
So Numerous.
READING TRANSFER DOUBTED
Spectators BeyviIdered by Apparent
Conflict of Two Large Opposing
FOrces-Atehison Commons Decline
Has influence on the MarLet-The
Bank of England Weaker.

stock market to-day can be summed up
IN the statement that yesterdays rally
did not hold It's course was broken as
feverishly, if not quite so sensation
ally. as it was at the preceding session by
various up-and-down movements in
prices. which succeeded each other more
rapidly than they have at any other time
thus far in the present period Of excited
fluctuations in values. The advances and
declines to-day, however, if more nu-
merous. were not so large as they were
yesterday, and transactions in stocks
were nearly 1.OO0000 shares less than they
were on Wednesday. There was from
the beginning OF the market general
discredIting of the stories so freely circu-
lated yesterday connecting the Reading
Railway Company property with some
new and great transaction in railway
high financing; and although it was COM
monty believed that there had been d
good deal of buying back recently by
prominent capitalists of some Of the
Reading stock sold by them several
months ago at much higher prices, the
prevailing disposition was to consider the
violent advance in the prices of the shares
\
of the short interest in them.
Spectators BewiIdered.
To a considerably greater extent than
was the case yesterday. the market to-
day betrayed the conflict Of two opposing
forces. with the result, naturally, Of be-
wildering the great majority of specula-
tors as TO the real trend of values. At
the close, however, the influences making
for a decline We're clearly in control OF
affairs, although. during the morning
Tours the undertone Of the market was
frmer There was evidently an effort
throughout the day to make Union Pacific
common stock take the same place that
Reading took yesterday as "a leader on
an upward movement. but these efforts
We're frustrated, and Union Pacific closed
for the day at net loss of IL points.
A general wave of selling passed over
the market i'm the last hour and a half
of business. more than wipiug out the
whole of Yesterdays large gain and max
ing "a new low record for the year in
the average price of the standard railway
shares.
AtchiSOn Common an influence,
The stock IN which liquidation was great
est or at least in which selling was more
pronounced and whose decline. therefore.
Influenced the market more than anything
else, was Atchisou common. The fall here
was popularity thought 10 be due to the
belief now commonly held that the divi-
dend on Atchison common stock will not
be raised 10 per cent, as was for "a long
time supposed. at the April meeting of
the directors of the company, bat that
the company viii I'm the present state of
the money market and OF anti-railWay
legislation in SO many States prefer 10
adopt "a more conservative attitude in The
matter of dividend declarations than il
had practically decided upon some months
ago A drop OF > points in the Louisville
and Nashville shares, the general weak
ness of all the Erie issues. and particular
heaviHCss of Southern Railway common
and preferred stock from one end Of the
day 10 the other also helped TO unsettle
affairs
Southern Railways Decrease.
The selling of these two last named
were no doubt occasioned by the publica-
ton Of the Southern Railways January
earnings statement. showing a decrease of
over 40 per cent in net revenues. During
the seven months of the fiscal year TO
date the net earnings of the company
have decreased Sl,553,o2o, and as the
annual fixed charges OF the company
have increased during the same period
nearly 100000 it is easily calculated
that the company surplus earnings over
preferred dividends as shown at the time
Of the last annual report has disap-
peared. There is every reason TO believe,
q
expenses has represented to a large ey-
tent money spent i'm improving the con-
diuOn OF the property of the company.
Bank of EngIand's Drop.
Aside from the Southern Railway
January statement as noted. the only
real developments of interest in the
financial news budget to-day We're those
comprised in the Bank Of England.s
weekly statement of condition and the
Union and Southern Pacidc's January re-
ports of earnings. The Bank Of England
exhibited surprising drop in, its proper
ton Of reserve held against liabilities. The
reserve fell 10 1lS2 per cent against f722
per cent last week and Il per cent last
year. This was caused seemingly by "a
decided enlargement Of the institution
loan account, inasmuch as its holdings
Of gold coin and bullion increased over
s.. 100000. The ratio of the banks reserve
at this date is lower than it has been at
any corresponding period since 1899 and
again testiies 10 the activity Of trade.
which is acting TO a greater or less extent
as a strain upon capital in every quarter
OF the world
Gold Going Ia south America.
South America still continues, over $780,
600 being Withdrawn to-day from the
Bank of England for shipment to the Ar
gentine Republic. The poor condition Of
the bank caused weakness In investment
securities to-day in the London market.
and was also doubtless responsible for a
rise in the rate for sterling in Paris To a
point which seems 10 suggest an early
transfer Of gold from Paris to London
Here, the price Of sterling continued to
hover around the gold import point. while
exchange on New York in the large in
terror cities holds at an unusually high
discount for the time of the year One
reason for the selection af the Hartman
stocks rs possible Centers OF a rallyinc
movement in the market to-day was un-
doubleday the large increase in their
earnings for the first month OF the year
The Southern Pacific represented an in
crease in net OF S1,O0o0O0 and the Union
of $4,000 a fear is generally expressed,
however. in the financial district that
after the disclosures made at the Harri-
man investigation, both the Union and
Southern Pacific companies viii not be
enabled longer TO maintain the high
freight rates that have made such earn
lngS possible.
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Papers for the incorporation of Ed