Los Angeles herald., 1907-03-15
GAMBLERS FEAR
ANOTHER PANIC
DAY IN WALL STREET NEVER
TO BE FORGOTTEN
Entire Market Hits the Toboaaan
Slide and Stocks Lose Many
Polnts-No Failures
Recorded
fcontInued from pnrs nne.1

CONTINUED from Page one1
1uenced by the better prices in Lon
don, but before II o'clock a heavy SELL
Ing, movement was in progress and
prices lost from 1 to 4 points.
Union Pacific Drops
Union Pacific led the early decline
with a break of 3h points to 142, and
Amalgamated Copper followed with a
drop of 3h to 95 United States Steel
offered more resistance than most of
the lost and after selling at SO it rallied
to above 81 helping to steady the re-
mainder Of the list.
After prices steadied there was a fall
ing off in business and the market re-
manned relatively quiet until between
IL and 1 o'clock, whe nthe bears CEN
tered their efforts on Union Pacific
Reading and Amalgamated Copper. The
whole list was affected by the rapid
falling off in these shares, and the scene
on the stock exchange became one of
| Wild confusion. There seemed to be
absolutely no support to the market
and the trading became demoralized.
Reading Falls Rapidly
This downward movement seemed to
spend Its force in a short time, however,
only to be succeeded toward 1870 O'Clock
by the widest tracing that has been
known on the exchange since the
Northern Pacific of 1901.
Reading fell rapidly to below par, get
ting down as low as 96k, while Union
Pacific went to 131, st. Paul to 1870 and
Amalgamated Copper to 81. At this
| time traders thought they had seen the
worst of the day, but still more sensa-
tional declines, with the most excited
trading scenes, came just before the
close of the market.
Brokers who had called on their GUS
toners and who had not received salts
factory responses threw over their
stocks almost without regard for the
prices they would bring, and 1t was in
this slump that the extra low prices
were reached, Amalgamated Copper
selling at so, Atchison at so SIS, Balti-
more & Ohio at 95, Canadian Pacific at
167 ST Paul at 125, Pennsylvania at ia,
Reading at 81, Southern Pacific at
60 "a and Union Pacific at 100 IA. Aft
er the most urgent selling had been ac-
complished there were sharp rallies in a
number of shares, most of the leaders
closing from to 8 points above the
lowest.
Many Rumors Afloat
Wall street was so excited during the
worst period Of the afternoon that al
most any rumor received some belief.
One report that had considerab BILE effect
on the market and on Union Pacific
particularly was that a serious break
| had occurred in the friendly relations
between e. H. Hartman and the bank
| ing firm of Kuhn Loeb e, Co
| According to this report, Mr.. Harri-
pan had been requested by the banking
| firm to take up a large amount of Sc
cErities which they were carrying for
him. the story was almost instantly
denied, but, Notwithstanding the denial,
continued to have effect
| Another reason put forth for the
heavy break in Union Pacific and Read
| ing, accompanied by the sharp falling
be that the Union Pacific was having
difficulties in financing its purchases of
Baltimore & Ohio, Atchison and other
stocks. In order to finance these opera
tions, 1t was asserted, the road would
be obliged to issue short time notes and
the issuing of these notes would be af-
fected by the fact that the recent de-
clines in Baltimore & Ohio and Atchi-
son show losses of many millions of
OOlldA6 1IOlAl IAlO PLlSCo Ut WhlSh lhCy
were purchased by the Hartman in
terests,
1t was pointed out also that the de-
cline in Reading shows heavy loss to
Baltimore & Ohio, which holds about
$50, 100000 of Reading stock.
No Failures Occur
| After the close of the market much
relief was expressed that there had
been no failures during the day and
that of all the rumors in the street
there seemed to be none Affecting the
solvency Of any banking or brokerage
house of any Importance.
The banks reported that their de-
n ands for further collateral from brok-
ers had met with prompt response, and
that so far as they were concerned
their position as to the stock market
was satisfactory.
A remarkable feature of the present
decline in Wall street values is that II
was foreseen several months ago and
that warning was given, so that brok-
| ers generally had protected themselves
by requiring their customers to de-
posit and maintain ample margins on
their trades.
In this respect the present situation
differs widely from that of 1901, when
the contest over the Northern Pacific
| pAOuBhI dpOot a pohAS ct a SAAAAS "AASt
bull speculation was rampant and when
the public was carrying heavy lines OF
stock on comparatively slender mar
gins.
At that time brokers suffered heavy
losses through failure of their custo-
mers to respond to calls for funds Sc
far as is known no such state of affairs
exists today. Some of the large COM
mission houses have reported for the
last several weeks that their customers
were out of the market entirely.
Secretary Cortelyou's announcement
OF government relief was received with
much satisfaction. in financial circles
II being pointed out that 1t would aid
the banks greatly In making the pay
ments due on the Pennsylvania rail-
road rate issue and the Standard oil