The daily morning journal and courier., 1907-02-26
Buyers Intimidated.

Gunned After Big Stop Loss Orders WOuld-be Buyers Intimidated.
 Stocks tumbled yesterday all along the lines as far as active trading stocks were concerned.
 Liquidation and heavy selling for the short account carried individual. shares down from 8 to points. There were a dozen or so that sold under any level established since 19O4 or the early part of 1905. Bearish sentiment was on the increase, without anything in particular to check it.
 Several things helped the bears, such as high time money rates, little pros pect of the passage of a currency re- lief bill, railroad presidents bearish talk as to prospects, and the Hartman testimony as to how big financiers con run the speculative machine.
 The events of the day were not of the sort to cause the investor or the speculator to rush in and buy securi- ties.
 Union Pacific was one of the weak spots, notwithstanding MT, Harriman's explanation on the witness stand of the Union Pacific's lucky venture in the "Hill stocks.'
 The decline was largely maneuvered through the fact that with stocks so Low there was practically no buying power in sight, caused Encouragement to actual holders.
 The appearance of MT. Hartman on the witness stand was the signal for an attack by the bears. Union Paci- fic, Southern Pacific, and Alton com mon stock were offered down. The first mentioned sold down to I'll IA, as against 172 3-S, Thursdays closing. Alton broke points on few sales, It had been some time since there was a transaction in it. After this Union Pacific recovered above 172. But short ly after o'clock, when the entire mar ket was under pressure Union Pacific sold down to 170 7-S on small sales, GIOSlllS dI lOJ O-O. SOuIHGTIl GdClllG anu all of the leading issues with which the Standard Oil party is identified broke sharply, and all support appeared to have been withdrawn.
 "There is a good deal of dynamite in this investigation, and we must be ready to hear some of it explode" was the comment of banker on the Har riman grilling,
 Inquiry in New York among brokers regarding the character of the trading and the reasons for selling brought re- sponses that only a small part of the liquidation was due to the Hartman investigation. Their customers more often expressed dislike for the con- tinued agitation against railroads by state legislatures, and the passage of bills with scarcely any opposition, cur- tailing revenues of transportation com panles through the establishment of a two-cent-a-m maximum rate on pas senger business. This fact and the predictions of financiers regarding a possible setback in business during the next year or two contributed largely to the selling of stocks.
 President Truesdale of the Lacka- wanna, in discussing conditions yester- day, said: T have belief in the genu- inc prosperity of the country, but I al- so believe we are living in time of as great imitation as during the green back days following the close of the civil war"
 One feature of the Hartman testi- mony which was liked by the specula- tive community was the large profits which the Union Pacific company made out of it's Northern Securities stock.
 Many stocks touched the lowest prices of the year. This means that yesterdays figures have in some in stances, not been reached since 1904. Southern Railway preferred Reading, st. Paul. Baltimore and Ohio, Rock Island and Atlantic Coast Line were in this list.
 The stock market closed active, around the lowest prices. Call money advanced 1-2 per cent. yesterday, and there was a firmer tendency to time rates.
 With MT. Hartman on the stand tes- tifying that he paid 120 for Baltimore & Ohio common there was some won derment why the street should be anx- ious to sell at 110. Yet the stock was poorly supported. The January earn ings, rumors of a note issue, heavy selling by brokers with strong clientele and for liquidation brought out the col lapse February earnings are expected to be poor.
 The extreme weakness of Reading right from the opening, with some blocks of stock aggregating 5000 to 5000 shares. attracted much attention The most plausible explanation is that a traders pool, which probably aggre- gated at one time 100000 shares, was li- quidating the remainder of its holdings which it had been unable to persuade the public to buy higher up.
 The testimony before the interstate commerce commission clarifies the at- mosphere and throws great light on the excessive capitalization of the reorgan.