Los Angeles herald., 1907-10-24
STOCK PRICES
SINK LOWER
WESTINGHOUSE FAILURE HURTS
WALL STREET
RUSH OF "sELL" ORDERS is
RECEIVED
Fragment Of List of Securities Resists
Downward Tendency--Trust
Company Failure Is
Disturbing Factor
BY Associated Press.

BY Associated Press.
NEW YORK. Oct. 23-violent perturbation
In today's stock market was taken fer
granted in view of the serious nature of The
days news, both from the trust companies
and industrial field. rhe senstlveness of the
market barometer Of conditions might
have left 1t open supposedly to even more vio-
lent disorder in view of the seriousness OF ,ho
news
AS matter Of fact there was a considerable
and conspicuous fragment Of the list OF securi-
ties which but slightly affected by the
acute depression at other points and by the
severe stringency of money.
The failure OF the Knickerbocker Trust COM
pany to reopen its doors today and the new
run precipitated on the Trust Company of
America by It's request for assistance from
other institutions offered surface evidence Of
trouble.
Then came the announcement Of the closing
Of the Pittsburg stock exchange and the eni-
barrassment so reported. Of Industrial COM
panies as the direct cause OF the other
troubles
The force of this latter factor on the stock
market was a test in the Importance of
Pittsburg In speculative activity, Sales OF
various stocks for Pittsburg account in New
York were enormous and made a prime in
nuence in the weakness Of the day. Westing-
house Electric for which the market is mar
row at any time. was slaughterea IN the
urgent liquidation. The reported embarrass-
ment of the company was the sufficient OK
PLANTATION General Electric was IN close
sympathy owing to the analogous business
The effect of the Westinghouse incident was
particularly severe on the industrial securi-
ties generally, and many of these disclosed
the artificial character OF the quotations wnicn
have been established for them, and the mar
row market existing for any genuine lauda-
tion left in them. Support In this part OF the
list seemed out of the question.
; People who find Themselves involved in these
unmarketable stocks are forced to liauidats
other securities TO pay off loans 1t was DOT
rowing for an urgent situation such as tnis
hiok call
stock exchange
rate of 90 per cent was made on small
call loan. Apparently the fears OF the enects
from contraction of credits applied more TO
enterpriscs of an Industrial nature than to the
TRANSPORTATION business and sensational de-
clines were made in large number of inactive
stocks OF all descriptions.
In spite of the hasty fortihcation or reserves
which was going many powerful banks re-
newed standing call loans at per cent anu
other rates materially below the 10 per cent
which called the ruling rate. The supplying
OF funds in this way was part OF the ter-
reaching policy in force to keep down panic
and save the situation.
The subtreasury statement showed gam
by the banks from that institution of sa,Sll,ooo
on yesterdays operations. and it was known
that the presence at the government institution
Of the secretary OF the treasury Insured addi-
tional relief measures by the government to
safeguard the position. 1t was eredibly re-
ported that slo,ooo,ooo of government funds was vas
deposited with the New York banks during the
day The knowledge of this fact. the oontnu-
ance throughout the day OF payments to de-
positors by the Trust Company OF America,
ana the fact that nothing like run developed
on any other institution dispensed the gloomy
clouds which overhung mems minds
The substantial rally in stocks OF the latter
rart ~ the day was the reflection OF this. The
further course of events in the Trust company
situation is regarded yet as the crucial test cf
the position
ronds were very weak The Westinghouse
convertible bonds shared in the demands OF
the stock Other convertible and speculative
issues made wide declines Total sales. par
value. s4.l25.o0o Government bonds were un-
changed on call,