The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-29
WALL STREET NOTES
Decline in Stocks Continues
for Various Causes,
STEEL ACTION DISAPP0INTS
No Explanation for Break Except
That Statement for December GUAR
Than $4,000, OOO-James II. Keene
Suspected of Having Begun Raid.

Suspected of Having Begun Raid.
New York, Jan 2S.-From start to finish
this was a bitter day in the stock mar
ket. Nearly all the rumors We're caleu-
lated TO help operations on the bear side
The earliest disturbing reports had refer
ence to the London settlement, which viii
/ begin Tomorrow, and the later ones We're
for the most part Of the kind that has not
become familiar regarding the financial
standing Of holders OF stocks None Of
/ the latter seemed to he entitled TO any
consideration whatever. and some bank
| ing interests expressed the opinion that
/ If the settlement passed off all right the
market might rally sharply.
In some quarters it was argued that the
attack on prices was the answer of the
Standard oil interests to the report
which the Interstate Commerce Commits
sion rendered Of its Investigation Of this
company. but very few brokers were
| ready TO believe that any such means to
teach the administration an object lesson
had really been advanced.
A matter from which the bears derived
considerable cncourag cement was the fact
that while the leading stocks on two re-
/ cent occasions got down to about the pres
ent level. few have now dropped below
the present at which support was encoun-
tered on the previous declines. and this
they think means that accounts that were
not reached then may be forced out now
They also say that in view Of that. money
that might have gone into stocks has been
put into the short-term notes that have
recently been disposed Of With so much
success by banking interests, so that th,,
buying power of class Of investment
houses is curtailcd for the time being
Apparently, the bears are only able to see
one side Of the situation. and as has often
happened before they may be forced 10
pay the penalty Of venturiug too much
on this view.
Western interests were heavy sellers e
stocks on the afternoon break
Real disappointment was very keen over
the action Of United States Steel, as it
was believed that the liquidation a week
ago which marked the end OF expectation
Of an increase in the dividend, also
marked the end of the decline i'm the
stock. For to-day's break there was no
explanation, except that the statement
for the December 81 quarter. 10 be pub
iishsd tomorrow. will probably show
earnings of less than SiGN0. 000-perhaps
nearer 90JJ.O0-although some estimates
In the past week or two put the net be
tween $40 100000 and Sll00009).
The orders on hand Will, IL is still be-
lieyed. make a good showing. but the
bears are all prepared for this with their
usual argument that orders are subject
10 cancellation. No one seriously believes
that there is any danger OF cancellation
ia the present condition OF the country's
bus. ness. and as for the results Of The
last quarter IL is pretty well recognized
that. large as the earnings are they
would have been larger had il not been
necessary 10 close down mills on account
of the difficulty OF obtaining supplies
One theory Of the selling of Steel was
that James r. Keene had begun a bear
campaign i'm the stock with "a view 10 de-
encc OF Steel, whatever way il moves. Is
always great. and if the bears can sue
coed in forcing this stock down much
farther. the bulls will have a hard time
To prevent "a considerable break else
where.
one Of the large floor traders sold dur
ing the forenoon about 20000 shares of
Southern Pacific. and his selling probably
influenced the selling of many thousands
of shares more. in some quarters this
selling was looked upon as the passing
Of hopes regarding the possibility Of an
increase in the dividend at the next decla-
ration in February thar
never received much encouragement from
the large interests in the property To an
appearances the buying looked better than
the seIIing-which is not saying much for
the quality Of it-but when it is consid-
cred how much better Southern Pacific
behaved. recently than Union Pacific it
seems reasonable TO assume that the buy
ing Of the former has been better than
il appeared to be As the dividend will
not be increased until August, there is
plenty of time for quiet accumulation,
and this. rather than an attempt to make
the stock look strong, is probably what
the insiders desire.
In view of the statement in the charges
made by an association of metal dealers
that the alleged copper trust now has in
storage more than Ge,000OO0 pounds Of re-
fined copper in the United States and
NJ hi. e,