The daily morning journal and courier., 1907-01-12
STOCK MARKET FEATURES
PENNSY,S STOCK NEVIS VAS 4
 VET BLANKET.
Caused General Break in Prices Rallied Somewhat Late in the Day The Talk as to Pennsy's PIans-A Strong Bank Statement To-day Indi- cated-The Days Gossip.

Strong Bank Statement To-day Indi-
 cated-The Days Gossip.
 Pennsy's announcement as to new is- sues of stocks and bonds fell like wet blanket on the stock market, and Penn sy stock dropped points with a thud. Then support came. The whole market felt the blow, and bullish ardor was dampened considerably Late in the day, when reports came that Pennsy wasn't going to issue the new securi- ties, at once, or for time, helped the rally that was due.
 It had been supposed that Pennsy's demand for new capital was about over, and hence the news was all the more disappointing.
 A Philadelphia special to the New York Evening Post was more reassur- ing, indicating no action in the near future to get more capital and adding: "So far as could be learned here to-day, there is no great significance in the proposed increase. It is certain that this was decided upon before Mir. Cas- satts death, an dis not the result of the new administration. Feeling here Is that the Pennsylvania has about come to the end of new propositions, and that action in future will be to bring them to completion rather than make nep, ventures. The Pennsylvania has propositions looking to the merg- ing of affiliated roads into its own com- pany These alone would absorb con- siderable capital stock of the Pennsyl- vania railroad.'
 Wall street is in no mood for the hun dreds of millions of new stock, bonds and notes that are being projected es- pecially when no light is thrown on the way in which they are to be expended. A quite natural conclusion was that Pennsylvania was following the Union Pacific in buying up shares of compet- itive roads. Probably this is not the real purpose.
 In the general demoralization and fit- full recovery of the first hour the per- formance of Steel common, St. Paul, Southern Pacific and Amalgamated Copper was favorably commented on. They held up against the liquidation and raiding, and rallied easily.
 At the opening yesterday blocks of Pennsylvania stock were thrown upon the market, the total number in the first five minutes of trading amounting to 53.600 shares. The very first sale was of 15,000 shares at 136 S-4 to 1S6, q net loss of 14 points from Thursday nights closing figure. It continued to decline until it reached 1S5 14, which was four points below Thursday. The actual loss to the holders of the 53600 shares thrown "overboard" during the first five minutes aggregated no less than $15O,0oO
 Losses in other sections during the early trading were also very heavy but subsequently, the market took on a firm tone and prices rallied substantially from the early low level This im- provement was emphasized in the late trading.
 About 75,000 shares in 8 dozen active stocks were dumped on the market at the opening. This led to a confused and excited state of affairs. Stop-loss orders were executed on liberal scale. Practically the only support came from the shorts, who were able to get back stocks much sooner than they had hoped.
 One theory advanced by the bulls was that, now that tho Pennsy news is out, it is no longer a menace to bull- ish endeavor, and hence better prices ought to follow with the easier money situation.
 Rock Island broke below 2S 1-2. This is the lowest it has been since the Was serman pool took it in hand after the Speyer and Hallgarten people had ac- cumulated considerable stock from 27 up to 29. The latter sold heavily on the rise to 32 S-S. Now, as 1t was asserted, it looks as though strong people were accommodating again.
 The cash gain of over $11,00G,000 re- ported by the banks practically guaran- tees an enlargement in surplus reserves to-day. This may be made the basis of an advance in stocks after a rather de- bilitating week.
 Money yesterday: High, 5S-4; low, 4; closing, 4 1-2; mostly all, 1-2
 MT. Cassatt's official estimate, in March, 1903, that the eastern lines of Pennsy would need only $67000,000 new capital in the next two or three years, and that the New York terminal proj- ect would absorb only $5O,OOO,OO0, now appear as astonishing iunderestimates.
 The only bull point on the Hartman stocks was that the hearing at which MT Hartman is to be the star witness will not occur until the end of next month.
 Of Pennsylvania's own demands it is expected that the capital is, at any rate. to be invested outright in legiti- mate and productive railway develop ment
 What concerned Wall street, after most of the facts about Pennsylvania became known, may be put in the form of a question, How many more new stock and bond issues are contemplated by other companies?"
 HID rrrH11NJAT PANOTIFT