The Washington herald., 1907-03-19
WALL STREET NOTES
Sluggishness and Sagging of
Prices Expected.
REACTION NOT A SURPRISE
Bargain Hunters Who Begin Opera
tIons in London Responsible for
DecIine-Few stocks Held West OF
the mississippi River-PooI DssAolu-
tion Probable Cause of L. p. Break.

New York. March 1S.-The course Of the
market to-day was entirely in accord with
traditions of post-panic happenings. 1t
was the. reaction from the panic rally,
AMI, Ike most such reactions in the past,
was marked by a decrease in activity.
with occasional periods of sluggishness.
and by sagging Of prices. interrupted
occasionally by sharp breaks. If there
was anything 10 distinguish the market
from the traditional reaction. it was that
prices dropped of rather more than has
been customary on such occasions. But
It was considered that this variation was
natural enough. in view of the fact that
the panic rally was stronger than the
average OF such rallies in the past. It
brought about a recovery Of points IN
twenty railroad stocks, as against loss
OF 1882 points. whereas IN the past the
recovery has seldom exceeded two-thirds
Of the Joss
The reaction began, as did the rally. in
London. PrOfit-taking sales and renewal
of bear operations were strongly IN evil
denee there. Under the weight OF them.
and because OF a feeling that the rally
had been too enthusiastic, prices for many
standard shares opened 1 TO points of
Bear operators on this side. IL was be-
lieved, engaged extensively in the prac-
tice Of selling in London for New York
account, and subsequent selling In New
York by cable to and from London. Lon
don's sales, at any rate. whether for New
York or London account actually pr0ba-
big exceeded 1900 shares.
The bargain hunters were still In evil
dence. but in very many cases the orders
to commission houses were to buy stocks
only at discounts from Saturdays prices
In very large number of cases also bar
gain hunters were satisfied with their
bargains. and closed out lines which had
showed a good profit. European bargain
hunters were reported particularly TO dis
play this tendency. In this way the very
strength Of the rally produced weakness.
ard the weakness naturally attached 10
most of the shares which had rallied most
vigorously.
For the particular weakness Of Reading
and Union Pacific the prevailing explana-
ton was that as they had been bought
most heavily TO stem the decline there
was on hand a large amount Of stock for
sale at prices which looked at ali good
Many of the purchasers on the declining
market were said und0ubtedly-tO be oper-
ators eager, for various reasons. 10 get
out or the market as rapidly as was com
lmensurate with the safety Of the general
situation There was said TO have been
found a large block OF Union Pacific in
the accounts OF a large operator, who was
fortunate enough 10 secure help that he
had 70 have on Thursday. Il was report
ed also, that forced liquidation in the
Hartman stocks Is nGs completed, but
most brokers could not see that men who
carried Union Pacific through the storm
/ last week could be in serious danger now.
! Just before the close Union Pacific gave
an imitation OF the high and lofty tum-
bling Of last week. In the course Of eight
or ten consecutive sales it dropped from
/ 1861 to 1854 and jumped back TO 157s4
/ Missouri Pacific resisted the reaction in
manner that was gratifying to the
friends Of Stuveysant Fish The stock
gained 4 to / per cent, while most of the
others were declining to-day. 1t closed
at p, one Of the strongest securities Of the
day, but. Ike everything else, far below
the prices of last fall. when it sold at and
above par.
The break of 81 points in Consolidated
1 Gas relieved the street from a repetition
Of the reports of an early settlement of
the S0-cent gas litigation in the com
pany's favor.
An officer of one Of the largest Western
railroads explained the lack OF concern
for breaks in the stock market by the
fact that a very small proportion OF the
standard railroad and Industrial stocks is
held west OF the Mississippi River. IL
you draw a line north and south. he
said. midway between Chicago and St
Paul. you will have a division Of the
country into the sections where the stocks
are and are not held Practically all OF
the standard railroad stocks are owned
by investors living east of that line The
return from railroad investment has been
too small to interest many of the West
Ierners, and they care little about the
market value of railroad securities. II is
on that account that the break in the
/ stock market has no influence on senti-
ment against the railroads in those West
ern States. The residents are not affected
directly, and do not appreciate the indi-
rect consequences of stock market dis
turbs nee"
/ Copper, the metal, has not been affected
in price TO the slightest extent by the de-
cline in the Copper shares. The metal
trade processes itself Indifferent tC
breaks such as PA in Amalgamated, in
Anaconda, and 5l5 in SHELTERS to-day.
i The most generally accepted story Of
the throwing over of Southern Pacific an6
Union Pacific in the panic days OF last
week concerned the dissolution of the poo
in those stocks said to have been formed
by the Hartman party before the declara.
ton OF the notorious dividend last Au-
gust There were taken into the pool
according to general belief. not only the
principal and well-kn0wn members of the
Hartman party. but also several wealthy
and well-known men who had rendered
favoTs to the main figures in the associa.
ton, or whom. for various reasons, Har.
riman wished to put under obligations L
himself Hartman and his DTinciDai a