The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-08-08
BEARS HAMMER
STOCK MARKET
Holders of Securities Reaping
the Reward of Late Attempt
to Boost Prices.
DROP ALL ALONG THE LINE
PARTLY DUE TO PROSECUTION
OF CORPORATIONS.

New York, Aug. THE squat which
broke over the stock market today has
been brewing for several days, and
there are not waiting observers to con-
tend that the seeds Of the trouble were
sown in the ill-advised market move
ment to advance prices which was en-
parked upon under fiamboyant au-
spices late in June. The market COM
mltments now holding over from that
period, besides the embarrassment of
the money and capital agitation which
were then perfectly we'll foreseen have
been overtaken by the bad effect on
sentiment of the renewed outbreak of
hostllitles against corporations. The
stock market was disposed to view with
MID dlsquiet the news of the enormous
fines levied on the Standard Oil compa-
ny by Judge Lands last Saturday
Every day since then, however, the
daily news has consumed large space
with the announcement of new meas
ures or plans in pursuit of the railroads
or other corporations. The iteration has
got on the nerves of Wall street and the
disposition to sell has been increasing
and the decline in prices has gained
cumulative velocity, as it is the way
with falling bodies, the outcome being
the spasm of liquidation today
No one questions that there was large
and important liquidation in progress,
although the part played by the bears
in forcing prices lower and in precipi-
Eating the liquidation, was also OBJ
Vtous. The bear element has grown
cautious after the considerable decline
that has occurred this week, and es-
pecially after the disturbance in the
early London market today. American
securities were pronounced a bright
spot in the London market and there
was some buying for foreign account
here The result was a show of
strength in the early part of the day
and some demand from the shorts to
cover. This appeared later to have
been a device on the part of the more
influential bear leaders to shake off a
weak following. There were signs
enough as the morning advanced that
important liquidation was still in pro-
greSs. The onslaught on the bears
thereupOn was fierce and the slump in
prices somewhat alarming The mar
ket proved to be honey-combed with |
stOp-lOss orders, refuting the common |
suppoSitiOn of its SOid-Out condition /
Gossip of days past was revived in 1
full force of the scaling down of clos |
ing out of speculative accounts follow /
ing a recent return from Europe. The |
stocks most acutely affected by the |
weakness were those identified in popu- |
lar estimation with the stock market /
activities Of the interests pointed to in |
this gossip, notably Union Pacific and |
Reading. The copper group also was
violently depressed. The subject most |
talked OF was the probable further |
course to be taken by the agitation |
against corporations and the measures !
likely to be next promulgated against /
them. Stocks of companies supposed to /
be vulnerable to such proceedings as
issued in the $4,000 900 fine against the |
Standard Oil company were cOnspicu-
Ously weak. The industrials as a group
were greater sufferers than the rail-
roads. The copper group, Sugar and |
some of the railway equipment stocks
including General Electric, sold at low
prices for the year. In the railroad |
line this was true only of the Southern
group, although other prominent stocks
approached the level of the March
panic. Reports of the conference of
state district attorneys of the Missis-
sippi valley to concert further meas
ures against corporations, the Alabama
Indictment against the Southern Rail-
way company and reports of confer
ences against corporation advisers TO
devise protective measures fed the ap-
prehension on the subject.
The late rise in call money to per
,ent reflected the increasing pressure
0n resources there, and time loans were
strong and the demand active. Dis
counts were also higher in London and
Paris, and sterling exchange at Paris
declined, the movement tending to-
wards the point of attraction for gold
rom New York. Great Northern sub
5cribers to new stock had an INSTALL
nent of $S.000.00O to pay today. On
Friday there falls due s15,OOOOOO on
- n -
Thursday of next week S15, 900, 900 for
Southern Pacific preferred stock sub
The obligations thus accru-
ng necesSitate resources in hand to
meet them, and this cause may have
igured in the days liquidation in
tocks. The fall in New York exchange
n Chicago to 80 cents discount was the :
ndeX of anOt her source of DreSS11re IN