Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-11
WERE HARD HIT
Depreciation in Great Northern and
North0rn Pacific Greatest.
ERIE WENT DOWN A T0B0GGAN
Wealthy Men Have Incurred the
Losses and the Public Did Not
Generally Participate.

NEW YORK, March H.-There mas been
a shrinkage in the last six months of 81
sos. 10000 in the market value Of sixty
companies whose shares are listed on the
New York Stock Exchange. The corporations
whose shares are so compared are the
leading railway and Industrial companies.
The comparison is made between the clos
ing quotations Saturday with the high
prices at which the sixty companies sold
last year.
While Saturdays closing prices do not
represent the low point at which securities
have sold In the recent violent liquidation
in all cases, still it is believed that the aver
age price of the active railways and indus
trials on Saturday represents the low level
of the year.
The list of securities. of which compifa-
ton of the shrinkage in market values Is
given is approximately 45 per cent or the
stock for which an active market exists on
the New York Stock Exchange. The decline
in the stock market has been very general,
and practically the entire list of securities,
including bonds. shows material deprecia-
ton as compared either with the prices
reached in September last or January, 1913.
when another high point of stock values
was reached. 1t is therefore. safe to estl-
mate that there has been depreciation IN
market values Of nearly $2,oOO,OO,OOO IN the
last twelve months.
In Great Northern and Northern Pacific
the depreciation has been greatest: In the
case of Great Northern, however the rights
deducted Were Tsry vasua phieb are now
selling in the market at about SO De-
Quoting this from the depreciation OF 1854,
there is still left a decline of 12S points in
this stock. The net decline in Great No NO, IN,
ern. therefore, is 1913 points on $1o0.OO0,,W
of capital, making a depreciation or $lS2,-
COO OeO. Valuable rights have been deduct
ed from Northern Pacific, which will great
~ reduce the shrinkage in this case. In
the case of ST. Paul. common and preferred.
similar deductions for valuable stock rights
must be considered.
Great Shrinkage in Erie.
In the case of the Erie the common stock
shows an enormous shrinkage amounting
to S35313eOO The Pennsylvania decline,
amounting to % points, swells the total
because of the large amount of capital
stock issued and outstanding. Union Paclnc
common shows a depreciation of 40 points.
compared with the high figure reached ioi.
lowing the boom last August. when wan
street and London We're astonished py the
dividend declaration or ~ per cent per
annum.
In the industrial list glance at the tap-e
of deprecia tons shows no such declines as
those recorded in the railway hst; Con
solidated Gas. for special reasons, mas de-
clined in the last year 5614 points. but this
decline was over before the liquidation OF
1867 set ill., and was due directly to leg
islation which impaired its earning power
and dividend-paying abilities. The declines
of 122x in United States Steel common and
IL in the preferred are comparatively small
but when multiplied by the immense num-
her of shares issued the shrinkage in val
ues becomes enormous. Colorado Fuel,
among the industrials, shows the most
severe decline The local traction shares
which are included in the list of industrials
show very substantial losses.
In view the deDreciat ton OF STOCK eX-
change securities amounting to about
S. JOOG00.G0O, the question is naturally ask
ed. Upon whom does the decline IN values
fall?" That there has been a great shrink
age in the wealth and security holdings OF
capitalists in the last year is self-evident In
order properly to arrive at the answer to the
question Who has been hurt? 1t Is neces-
sary to inquire into the character of the ousi-
ness on the stock exchange in the last four
teen months or more. The period covers a
part of the time in which insurance matters
were prominently before the public. and, as
will be recalled. the disclosures attending
the insurance investigation were OF char
acter to cast disefedit upon Wall street no
tations and revealed the grip the capitalists
had on the insurance funds of the people.
The consequence of these reveiat tons was
| that the public did not participate in the
stock market.
Turned to Mining Booms-
Confidence was further shaken by the
disclosures of the interstate commerce COM
| missions Investigations. and the tendency
| of the public which had funds with which
| to speculate was to enter the mining Held
| and participate in land booms in all parts
! of the country. The workings on an exceed
| ingly light money market for more than a
| year indicated also that there were pow
erful people borrowing funds who could not
| easily be dislodged.
! Wall street is aware that there is nothing
! so mobile as the loans of brokers and COM
| mission houses who act as the borrowing
| agents of the general mass OF the people.
| Such agents can readily be forced to bow to
the demands of tight money market. tx
| actly the reverse is the case of the capital
| ist who can afford to pay high money rates,
| IL his profits are large, and who can at the
same time provide ample collateral as secu-
| rfty.
/ The inference is readily drawn. therefore.
| that the bulk of the depreciation in values
| which has taken place more particularly
1 in the last three months has fallens upon
| the wealthy men, who have finally been
forced to bow to the inexorable workings
| of the money market. Pools in Erie, Union
Pacific. Interborough-M Metropolitan and
| many other issues have shown enormous
losses. The pool of traction owners and
| their friends. which agreed to buy
SOC, GEO shares of the common stock at 80
or above. has sustained a loss of $7,o00,0 900.
according to Saturdays figures Many. of
| the members of that pool have. since the
| first collapse, sold out and have reduced
their losses, but those who have their STOCK
still have suffered greatly. In the case OF
/ Union Pacific it is the common belief that
| the greater part of the holdings of the pool
1 has been Sold but there still appears to be
! a substantial loss for its members. who
hoped to reap enormous profts from the
dividend coup.
| Followers of Great Northern and North
ern Pacific. who assumed heavy speculative
commitments in addition to their invest
| ments probably have suffered the most Sc
verely OF all groups Of individuals operat-
ing in the stock market. The tale Is re-
lated of two men, rich and members of old
New York families. who bought $4,000
shares at practically the top figures of last
year. They believed the stock would sell
at $500 share, and they. even argued that
on its future merits and on the distribution
of it's collateral assets the stock might sell
on an equivalent Of $500 a share
These two men now divide loss of 81,
1 100000 between them.
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