The Washington herald., 1907-03-15

NNAAsA--NNAtAA
that of the Nortsern Pacific corner in
May, 1901-the source of the trouble that
arose was perfectly well understood, and,
although declines in the two days selling
movement that ensued at that time were
slightly greater than those that were
recorded yesterday and to-day, the finan-
eial community was involved in no un-
certainty as to the cause OF the trouble
and the difficulty passed as quickly as it
came.
At present as in 1901 the feature OF
the situation, specifically considered, Is
the absence of financial failures, this at
testing, Of course, the marvellous inher-
ent soundness of the country's general
prosperity. and that the great aceumu-
lated riches of the past that can stand so
severe a strain, and yet it may be doubt
ed whether the absence of developments
of this kind to-day was not substantially
more harmful to the market than their
presence would have been, since the fear
was general that such tremendous de-
clines in prices must either testify TO some
evil thing hanging over the market that
was as yet undisclOsed, or that confes-
sions Of insolvency in various quarters
might be expected as their result
Different from Wednesdays Move.
The movement Of prices to-day differed
from that of yesterday in that it could not
be said. as it could on the day before that
there was at ali times fairly close mar
ket for stocks. The days fluctuations
took wide and excited range, and changes
of a point or more in prices between sue
cessive transactions were common, and
the continuous and excessive declines en-
gendered a feeling of widespread alarm.
Such rallies as occurred were feeble and
dispirited, and the great active stocks,
such as Union Pacific. Reading. AtchisOn,
and St. Paul common, Northern Pacific
Great Northern, Amalgamated Copper.
and others. closed at declines ranging
from to 20 points. Many Of these stocks
left of at the lowest figures of the day.
although in. several instances transactions
occurring just before the end OF the mar
ket caused net losses TO be somewhat Te-
duced The dealings in Union Pacific COM
mon shares seemed to exert a greater
sympathetic influence over prices in gen
eral to-day than did those in any other
stock, and for that matter the same re-
Election may be made concerning the
course of the stock during the entire week.
B. q o. Stocks Unpaid Fer.
Recoveries in it have been less fire.
quent than in any other one of the lead
ing railway shares. and liquidation in it
seemingly more insistent. A reason COM
monty assigned for this is the fact as re-
vealed at the investigation recently held
by the Interstate Commerce Commission.
that the Union Pacific management
bought some time age a large quantity OF
the shares of the Baltimore and Ohio and
other railway companies at prices which
involve at ruling quotations u net loss
upon the company's books of many mil
lions of dollars and which are still unpaid
for
The debt thus involves the borrowing by
the Union Pacific Railroad Company. at
some time not far distant, of good deal
OF money. The last Hartman speculation
in the stocks of railway companies owned
by the Union Pacific interests has, in
other words. turned out TO be not nearly
SO profitable as former ones.
Search for explanation of the cause OF
the enormous fall in the market to-day
was forced to content itself with the first
and most obvious fact that il ran across
namely, that heavy and enforced hquida-
tion was taking place. great deal OF
the selling was that provoked by the
execution of stop-loss orders standing on
the books of the Wall street commission
houses.
Closing Out Accounts.
A great deal Of it represented the vol
untary or compulsory closing out of ac-
counts of spectators for the rise caused
by the unchecked and seemingly uncheck-
able progress of the decline. To a greater
extent than was the case yesterday, there
was to-day IN the market some invest
ment buying but it appeared for tn,
most part to consist only of scattering
purchases of stocks by people of relatively
small means. Beyond any question, thest
purchases would have been larger If en-
1ighCenment as to the precise cause ot
what was taking place could hav,
afforded. even if this would have meant
the revelation of some unfavorabe matter
from a stock market point of view
Very little thought was taken in Wal
street to-day regarding matters of rou,
tine news. Call money was higher thar
yesterday, rising at one time to p pei
cent. while bank renewals were com
monty made at 10 and 70 per cent; and th'
general suppOsition WaS that this woulc
lead to some such official action at Wash
ington as was, IN fact, announced aftel
the close of business.
McCrea's Statement DishearteninE.
A disheartening influence during tn,
day was the publication of a statemen
purporting 70 have been made by Presi
dent McCrea of the Pennsylvania Rail
road Company, with reference TO tn
proposed conference between Mr.. McCre;
and the president of several other lead
ing railway companies with Presiden
Roosevelt in which Mr. McCrea de-
clared that he had not been invited [,
any such conference. that those who hat
arranged IL for him did not have an,
power to commit him to anything, and Fl
general conveying the idea that plant
for the meeting were more or less in tn
air. It may be said here authoritativel,
that J. Pierpont Morgan, in arrangin;
this meeting of railway officials witt
the President neither had any idea o
committing anybody to anything nor di,
so in fact Morgan only went to Sc,
President Roosevelt as a pUblic-spirite,
citizen acting spontaneously in a grea
emergency, and all that be did do was L
recommend to Mr.. Roosevelt the gentle
men whose names have been made publ
as men who are operators OF railways, a
distinguished from operators in the stool
market and who could inform him mos
truly regarding the serious condition int
which business and financial affairs hav
at present fallen.
Not in Alton Deal
The men thus specified were not thos
who were engaged in looting the Altol
Railroad. nor who were concerned in th,