The Washington herald., 1907-03-20
WALL STREET NOTES
RumOrs of Trouble Induce
Another Severe Break.
BEAR DRIVE STARTS AGAIN

Rally Comes Only when Liquidation
Begins Governors of stock Ex-
change Deny They We're Asked TO
CO 20 Aid of Commercial House.
Copaers Weak Up 20 Closing Hours.
New York, March 19-Trouble, or what
sometimes amounts to the same thing
from a market standpoint-rumors Of
uouble-so industricusly and eleyerly cir
cuiated as TO cause general apprehension.
induced primarily, in al probability, the
severe break in the market to-day. The
stock exchange came out with a denial
of certain Of TIE stories. and this unusual
circumstance demonstrated that the ru-
mors heard in some portions Of the street
very likely were heard everywhere The
ramOrs were accompanied by a very bold
ana determined bear drive that carried
prices sharply down. and only when the
drive ceased, and il was reported that the
bears were covering, did the market rally.
In the most active trouble story OF the
morning an important stock exchange
house was reported as forced to llquldate
large holdings of the Hi stocks and of
Union and Southern Pacific. Whether on
account Of the story or on account Of the
liquidation. Union Pacific dropped
points in the first honf. and in the morn
Ing session Southern Pacific got down to
lI9s, a loss OF rs, Northern Pacific 10 123.
on AZ points. and Great Northern broke
so points, 10 1851 Evidently this was
much kcener business than any normal
reaction from panic rally. and it sur
prised a street which would not have
been al all surprised BY a general sag
gIng instead OF sharp break in prices.
Great Northern touched 1872 last Thurs
day, but closed at l4s. To-day it dropped
cniy 10 within 612 points OF Thursdays
low. but closed at 1a2. which is the low
est closing price for the stock for many
years.
The publication Of a report that prom
inent governors of the stock exchange
had held a meeting 10 discuss relief meas
ures for some stock exchange houses
was the rumor that particularly unsettled
values 1t was this that Secretary Ely.
Of the stock exchange, took paiAs TO deny.
and his denial was no lodging of the
matter. but exp icit and exact There
had been absolutely no meeting, il was
said, nor had Information reached the
governors that any houses needed assist
ance
President Pomeroy denied the report
with equal emphasis. and the small army
OF wan street reporters. who have been
selInS expert In running down failure
rumors by experience IN the past few
weeks, We're unable 10 discover positive
Information of houses in trouble. But
one thing was everywhere admitted; If
the stories We're market canards. they
were exploited with extraordinary clever
ness.
Dave Montgomery's advice TO get
away when the going is good. &" is declared
by one, broker to be commendable even
for millionaire operators. The expert
ence Of hundreds of traders IN the past
six months. the broker said. had demon
strated anew the wisdom Of taking good
profit, instead of waiting, for instance. for
price for Southern Pacihc and double
pan for Union. and an unprecedented
killing"
The Copper shares were again very
weak ~ TO the closing hours Amalea-
mated dropping IA points. TO S9ls. and An
aeonda, ga points. to CO. They rallied
nicely later. but the weakness In the break
was discouraging 10 those who consider
slump in Coppers inexplicable. or. at beast.
more mysterious than the break on the
railroad shares. These faneiers Of the
nm rrrsFa faa-
suca Disadvantages as the restrictive leg
isiation against the railroads, they ought
to be relatively stronger.
In the first hour Delaware and Hudson
dropped ~ points. 10 Us. 1t lost points
on single sale Of 100'shares
In the brisk rally of the last half hour
undoubtedly there was very heavy short
covering, and the ra9idity Of the recovery
of most OF the principal speculative shares
indicated to some that the process of COW
ering itself largely reduced the profits
of the bear traders Others saw in il
fresh buying support, and It was reported
that the Standard Oil party was Coming
TO the support Of the market again. There
were many who recalled hearing the same
report before.
Demand sterling exchange rates are
down to the lowest point OF the year. but
institutions which have in the past i'm
ported gold heavily said there was none
to be had in London.
Brokers who often act for the Rock
Island party and have been heavy sellers
f77roTr horr tho ham sssr,v-as.,,,,s
stocks all around the room +. H. Harri-
man was told a report that the Rock
Island party was selling again. and re-
marked: They're at it again. are they?"
In this month of March there is due a
partial payment on the Baltimore and
Ohio stock bought by the Union Pacific
at 120, The stock sold down to Sc SIS
to-day, and closed 2N1-4 points I'D from
the lowest figure.
A well-lnown commission house sent
on Monday for $1,000 shares Of Southern
Pacific it had purchased on Friday for
an investment customer. There were
turned over to the house enough certia-
Gates 10 all an ordinary clothes basket.
Almost all Of them were for less than 100
shares and the great majority were In
denominations of 10 shares. The certifi-
Gates, almost without exception. were
made out in the name Of foreign banking
houses.
The broker who received them said they
had apparently been sent TO this country
about ten days ago. or soon after the
news Of the Hartman investigation
reached Europe. They demonstrated~ to
his mind the haste with which some Of
the foreign holders have been getting out
of the market for Union and Southern
Pacific, and indicated anew that New