Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-10
lnroads Upon Wall Street
Prices Make New Levels.
UNION PACIFIC Is WEAK
Gould Stocks Unsupported With Some
Very Wide Declines.
BANK STATEMENT AGAIN WEAK
An Advancing Spirit of Antagonist
to Corporations Thought to
Have Hurt Market.
BANK STATEMENT AGAIN WEAK

NEW YORK. March 9.-The short ses-
sion at the stock exchange today was oc-
Cupied with another large volume of bust
ness and with wild price fluctuations. In
roads upon prices at different times dur
ing the session made rev levels in many
cases but there were points of resistance
in the market throughout. and the closing
tone was distinctly strong. with prices on
the up grade. and not few conspicuous
net gains for the day. The points of
weakness that had most effect on specu-
Iative sentiment were United States Steel
and Union Pacific.
The first named made a low level at 81
within the first hour after the opening.
aud rumnrs were diligently circulated OF
cancellation of orders for the company
product for future delivery. These re-
Ceived no official confirmation. ana the
stock rallied with the general market ana
closed at decline of Il. The preferred
stock was supported and closed with
fractional gain.
Weakness in Union Pacific.
The special weakness in Union Pacific
was attributed to fears of suit by the
government growing out of the Interstate
commerce commissions Investigation to
compel the divorce of the Union Pacific
and the Southern Pacific The Gould
were wide declines in some stocks not
usually active. The Pennsylvania group,
Including Reading. gave evidence of alb
sorption. and there was vigorous re-
bound in Atchison.
The bank statement was regarded as
weak but its publication did not deter
the bears from pursuing their late cover
ing operations. The outflow of cash was
larger than expected, but the stock mar
tod s,Nt hA RI
cradle loan contraction. Money and dis
counts rose in London, but sterling eX-
change continued to recede here. indicating
u prospect of a contest for new arrivals
of gold i'm the London market. Total sales
of bonds mar value $1,464,00O
There has been much excitement and
disorder in the stock market this week
under a continued flood Of liquidation.
which made the lowest level of prices
touched for several years past. Fluctua-
tons at times were exceedingly irregular
and nervous, as is usually incloeht 10 d
market of the dimensions of that OF the
present week. when professional operators
always follow movement with great bold
ness.
Turn Against Shorts.
A severe turn was executed against the
shorts in the middle of the week by the
Reading episode and the scramble TO cover
at that time revealed the extent to which
professional short selling has figured in
the severe declines which have occurred
in the market. The Reading movement
proved q temporary stay to the fall and
checked the progress toward the demon
alization of the market. But enormous
liquidation was again renewed to take
advantage of the slight recovery in the
price level and the market relapsed into
its previous unsupported condition.
% Drastic Liquidation.
'-Vhe drastic liquidation has proceeded
without any actual news to throw light on
-Gs motives or sources. No doubt is felt
however. that a feeling Of general discour-
agerent over the financial and business
outlook lies at the root of the stock mar
kct's trouble. The current comment in the
market Laws the greatest share of respon-
sibility for this gloomy feeling TO the por-
tentous growth of the spirit of antagonism
To- corporations and great asgregations of
wealth.
Sentiment Inf1amed.
The acutcness of the immediate anxiety
on this subject is due to the circums ;ances
surrounding and resulting from the inter
state commerce commissions inquiry into
liz. Hartman railroad combination. The
disclosures brought out at that inquiry and
The widespread sensation which they caused
Is felt to have inhamed public sentiment
10 degree that threatens the enforcement
a. measures against corporations that may
seriously hamper If lot prevent their prof
liable administration. \ deep impression
Of the extent to which capitalists recognize
the danger has been caused by the radical
departure in the attitude toward the public
~ prominent financers, Mr.. Hartman HIM
self being the most conspicuous example.
\ practical appeal in published interviews
for liberation strikes the Imagination as so
total a reversal of past corporation policy
As 10 argue a state OF anxiety that has
weakened the confidence of security holders
I" an extent bordering on decentralization.
Public Agitation.
Mr.. Hartman dwells on the public agi-
tation as a prime cause of the distrust of
capital toward railroad enterprises and the
high rates OF interest that corporations are
Obliged to pay. The difficulty of securing
new capital for railroad improvements.
either here or abroad. whatever the cause
may be- Is the prime cause of anxiety for
the future Of our prosperous activities. The
subject gains additional Importance from
the course of the net earnings of railroads
revealed by reports OF January operations
\ general advance in the wage scale went
into effect with the opening of the year.
Added to increase cost in other directions
the result is to increase the operating cost
So largely as to make severe contraction
In the net returns. To effect the economies
necessary to scale down these costs heavy
OUTLAWS of capital are recognized to be es-
sential. The capital. however. is not to be
had except on terms which seem to be
prohibtive OF the improvements. From this
condition OF deadlock a reduction of earn
inss available for dividend distribution is
considered Inevitable.
The Rate of Return.
Aside from these considerations threaten
ing the integrity of the present rate of
earnings there Is the consideration of the
discrepancy between the rate of return of
securities at present dividend bases and the
high interest rates in the money market