The Washington herald., 1907-06-12
MARKET DEPRESSED
Presidents Speeches Cause
of the Days DullneSS.
FAILURE SURPRISES STREET
Discussion as 10 whether Conditions
that Led TO MiIiIsen Brothers TrOu-
BILE Might Not Exist Elsewhere.
Strength shown at Opening Grndu-
ally Dissipated as Selling Proceeds.

New York, June 1.-THE news to-day
bearing on the security market printed
in the morning newspapers undoubtedly
afforded ground for a more or less specu-
lative discouragement in Wall street.
President Roosevelts speeches at James
town yesterday were not fully read until
after the close of business hours yester-
day. and while they were not construed
as directly unfavorable from financial
point Of view in that they did not threaten
any particular corporation or business,
they vet exercised a strong adverse mar
ket influence.
At q time when the entire country is
suffering from financial strain and appre-
heusion Is acute, concerning the results
OF this il is extremely disheartening to
find the President of the United States
still iDdulging in incessant agitation of one
radical economic proposition after an
other which can only have the effect Of
unsettling and disturbing the business
interests Of the land.
The difficulties in which a large local
iron manufacturing and contracting con-
Germ were involved, owing 10 such an
over-expauditure Of money for new con-
struction that not enough funds were
left for working capital, have long been
an open secret i'm banking circles. but the
suspension Of the company took Wall
street in general by surprise
Good Orders Ahead.
All the indications were, of course, that.
in view Of the great amount Of orders
fer work now or the books Of the con-
cern, the manufacturing plant would be
operated, as usual, with a fair prospect
that existing tfoubIes might be cleared
up Wall streets interests in the matter
lay chiefly in the discussion Of the ques-
tion whether the conditions disclosed were
OF were not typical of those that might
obtain elsewhere.
II had to be admitted finally that the
Japanese war talk became raised to-day
TO the eminence OF a stock-market factor.
It was not a very commanding eminence,
and most people who referred to the
subject did so in a semi-jocOse way. II
was fact. nevertheless, that the matter
was one that might possibly develop
greater seriousness. and war sCares have
a greater potency in financial circles now
than they did decade ago
Any idea of conflict at arms between
Japan and the United States on the face
OF things seem absurd, il for no other
cause than by reason of the overwhelming
disparity between the financial resources
Of the two nations; and internal financial
troubles are far more likely to engage
the attention Of the japanese in the i'm
mediate future than trouble Of any other
z 1f fr..sr
between Japan and this country has dan
gers that are recognized by all students
Of political affairs.
In the early dealings to-day the stock
market made a much greater show of
strength than might have been expected.
in view Of the unpleasant overnight Oc-
cUrronoes. Whatever stocks were thrown
on the market We're steadily absorbed
AMI when. toward the middle of tire day.
the declining tendency 0f the wheat mar
keJ following tho governments favorable
crop report yesterday was SO plainly
manifested. ard the veto hy the governor
of Jre State of the railway --Ccut-fare
bin wHs announced with the publication
of reasons therefor If refreshing caud0r
and orgen-v the security market ad-
v.r0e5 to prices for the standard stocks
g- level considerably above yesterdays
closing quotations.
Wending Common Strong.
Reading common stock was especially
strong and rumors Of m impending in-
creased dividend distribution Of the stock
circulated IN more positive way than
thsy have at any time previously during
IN. year. New York Central stooly-V8s
ALSO ar.rahiv Influenced. oi course. by
tEe governors vc,1 ol u. --eeut fare
BIN 1ut am this strength proved
erhauar3L Tho buying power or the mar
ket Was YIaiulv not sufficient to with
stand the liquidation and speculative sell
ing -1- the decline brought about by the
DAVIS news. and during the entire after
noon tho market was continuously and
y1t Hlv weak. prices closing only a little
ABOVE -hc lowest and with declines run
T.ug from Z to 9 points.
= The Tul0n Pacific common bore the
h:urt OF the fan in which they have done
I'm recent months. and seemed 10 be weak
IN addition. for one or two particular rea-
sons The impression widely prevailed
that the government. although IL might
not bring suit against the Union Pacific
company 90 contest the Company's right
10 control the Southern Pacific Com
TJuy or 10 own such Of the stock i'm the
New York Central. Reading, or other
companies. might yet take Some action
against the company based on facts lately
brought out with reference to the Union
Pacidcs interests in the affairs of the
Chicago and Alton Railroad Company.
and q story was heard. that was said TO
have emanated from London. that action
might be taken by Union Pacific bond
holders 10 restrain the company from dis
tributing dividends on its common shares
al the rate Of 10 per cent This late named
story found few believers. but it was not
without perceptible effect upon the price
Of Union Pacific stock.