The Washington herald., 1907-10-17
WALL STREET NOTES
United Copper Disturbing
Influence OH Change.
ONE FIRM GOES TO THE WALL
Failure of Gross & KIeeburg Net
Considered SeriOus-SuspensiOn Is
the Market-Bankers Generally Re-
gard Financial Situation as sound,

New York. Oct 16.-The extraordinary
antics Of United Copper on the curb be
came a disturbing factor in the dealings
on the stock exchange To-day. At first
the street was inclined to entirely disre-
gard them or to view them only with un-
concerned curiosity as a revival of a sort
of manipulation that used to be common
enough on the curb long before that mar
ket attained its present dignity as trad
ing center
Soon after 2 o'clock, rumors that the
firm Of Gross & Kleeberg was in diff
culties began to circulate. and about half
an hour later these were confirmed by
the announcement of the firms suspen-
sion The nrm had lately become inter
ested in United Copper and the announce
ment of its f6ilure was followed by
general rally in the market, on the ground
that the trouble had been located and
that it was not as serious as had been
apprehended-
Anaconda was one of the first stocks
to show on the floor of the stock ex-
change the effect of the break in the
price Of United Copper on the curb; and
Amalgamated Copper. which controls
Anaconda. weakened in sympathy with
its subsidiary.
Some Of the most significant selling OF
Anaconda came from London; but the
liquidation in Amalgamated was for local
account. and for the most part seemed
to be by holders who were also inter-
ested in United Copper. In this connec-
ton. it was rumored that certain United
Copper interests, after a successful oper-
alton on the bear side of Amalgamated,
turned around on the stock a few weeks
ago and accumulated a considerable line
OF long stock. This it was said, they
were forced TO liquidate to-day in order
to protect their own particular specially.
Another of the rumors put out 20 ac-
count for the weakness in Amalgamated
Copper was that certain large holders OF
American Smelling and Refining were
obliged to liquidate some Of their most
salable stocks in order 10 protect their
holdings Of less saiable securities, and
what they sold Of Amalgamated figured
TO even a greater extent than SmelteTs.
because the market for IL was broader.
Both stocks made new low records for
the present movement, but Smelters suf-
fered relatively more severely than the
other In regard to each il was said that
the dividend would be reduced 10 smaller
proportions than had before been gen
orally expected. and there was hardly a
trader who believed that the directors of
Amalgamated would vote for a larger dis
tribution on this stock than l per cent
for the quarter.
Missouri Pacifc's severe decline was
attributed to the calling OF loans. in which
the stock and some kindred issues had
figured largely as collateral. The break
in the stock raised the question rs 10
the continuance Of the present 5 per cent
dividend rate. but while the traders all
talked of reduction. 1t is probable that
they had nothing whatever beyond the
markets decline to base sucl conclI-
sion on.
Only in a few places did the market
show real resistance to pressure, but the
stocks which distinguished themselves in
this way were the most important on
I
Central, and United States Steel Here
were the leading representatives Of the
railroad and industrial groups as prom
iBent for their strength as they are AT all
times as the best eXponents Of the at
titude Of investors. and Brooklyn Rapid
Transit. now the leading representative
of the traction group was even stronger
than the stocks of the largest trunk
lines or the greatest industrial corpora
ton. These were the bright spots in the
market
Bankers reported that the situation was
sound and made no secret Of their salts
faction with the demonstration OF the
solidity Of Wall Street firms afforded by
the fate that such a break could occur
without causing more than one small
failure. Some Of them predicted that the
days low record would remain the low
point FOR the month, and that even should
another failure occur the resultant reces-
sion would be OF short duration. Any
possible further failure. they said. could
not have any serious effect on The sItua-