New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-04
THE WEEK IN WALL STREET.

Forced liquidation and aggressive operations
by the bear element We're responsible Tor lower
prices IN last weeks securities markets quota
tons touching the cheapest figures Of the year
end showing enormous depreciation as COM
pared with the high record level Of 1906. From
that range Atchison was down 10 points; Balt-
more & Ohio, 81; St Paul 90: Northwest oo'
Canadian Pacific. IS; Erie. 10; Missouri Paclhc'
10. New York Central 80; Northern Pacific. 10;
Pennsylvania, II; Reading, Al, and Union "a
cifc %, while elsewhere in the list, with only
a few exceptions stocks sold at level when
in comparison with the high points of last year
looked extremely attractive for speculative and
investment purchases. There was, however
little buying on the expectation that liquidation
had run it's course, spectators who took securl-
ties merely operating for quick turns or 10 cover
sales put out on passing recoVeres. Ihere was
nevertheless some investment buying, ana
brokers of long years OF experience in the Street
did not hesitate to advise buying by customers
who could afford TO purchase securities out
right. this advice being based on the fact that
stocks of the high grade variety were at
level which returned a satisfactory income.
Amalgamated at 112, Atchlsbn at 100, BatinorS
& Ohio at 10 Missouri Pacific at 81. New York
Central a. 126, Pennsylvania at $50 and United
States Steel preferred at 1O5 are not dear, par
ticularly the last named. which IS considered
permanent dividend paying issue and is being
bough; such by large and small investors.
1t is a noteworthy fact that in the last two
weeks this stock has been taken by small in
vestors TO the extent OF twenty, thirty and fifty
share lots and il is also worth noting that in
the decline that began early I'm January the
price of the issue has moved within range OF
less than 1 points.
Weakness in the stock market does not
stroved. Certain interests whose ideas are more
or less clouded over the meaning of government
interest IN corporations are preaching n falla-
Cious doctrine that the present administration
in its efforts 10 compel corporations TO obey the
law and deal fairly with the small man and the
big alike is undermining the foundations
of national prosperity. driving foreign capital
from the United States and bringing about
situation that viii leave heritage Of bankruptcy
for the infants Of the present generation. One
mOurnful observer puts the case this way: NO
one is allowed TO know whether after his life Of
toil-possibly of pinchng economies-he pos
sesses anything to ease his last days earth.
as he hoped to leave TO his wife and child. so
that they might not be dependent upon the
alnoners of charity to provide their daily bread"
He should have eased his mind little more by
adding that after the present administration has
run its reckless course there even would be
almoners of charity. universal destruction OF
property by that time will have plunged the rich
and the poor into utter financial chaos. Just
now the who can work is receiving more
pay than ever before in his life. there is a de-
mand for labor that cannot be satisfied, earn
ings Of corporations are heavier than ever before
in history. and the only gloomy spot in the whole
country is TO be found in Wall Street. The
against corporations, that is, the move
ment to promote honesty and fairness in our
business operations began long time ago and
good results only so far have been reported.
Some people thought that the so-called attack
upon the Northern Securities Company would
upset the railroad business in this country, that
the passage Of the Railroad Rate bill would
bring disaster. that the investigation Of the
Standard Oil Company sand OF the Beef Trust
would be followed by financial cataclysm; but
despite this government abuse" Of corpora
lions the country is getting along nicely and all
things are tending in the direction Of continued
good health in general business.
Stocks did not suffer more than passing weak
ness as a result Of the beginning Of the govern
ments campaign to eliminate bad features OF
corporation business. but then everybody In Wall
Street was On the bull side Of the market Now
that Wall Street is reaping the harvest of trouble
born Of overspeculation by big pools and rich in
dividual operators. President Roosevelt and his
blame for the losses that have been suffered as
the result Of the decline in values. The Presi-
dent has waged a campaign in the best interests
Of the whole people. and his policy is not reduc-
ing the value Of American investment issues by
one cent indeed. the housekeeping that is I'M
der way IS Strengthening the financial position
Of every man, woman and child in the country
If there is panic in Wall Street It viii not be
because Of trouble in the business world, nor OF
the plans mapped out in Washington for the reg
ulation Of the countrys corporations AT the
close of the last week traders on the Stock Ex-
change adopted the irresponsible talk about a
war between Japan and the United States as an
excellent argument for still further declines in
value. and their operations were entirely success
full in most parts Of the list the decline bringing
out many stop orders on accounts which had
been purchased when the market was selling at
a materially higher level. Each successive de-
cline weakens the position OF so-called strong ac-
counts Many holdings which few weeks ago
were heavily protected now on the ragged
edge. and the banks do not feel disposed to lend
much assistance 10 the unfortunates sHho no
longer are in a position to stand a continued
drop in prices. The market was helped at va
rous times in the week by buying by substan-
tial interests, but these operations served only
TO create superficial strength. which did no per-
manent good to the general speculative situa-
ton.
A general slowing down in the country's over
worked industrial energies is expected to develop
in the course Of the current year. Such process
will be welcomed by the greater number of bust
ness men, as it will be the surest safeguard
against business depression. At the moment the
country's industries working overtime, and
unless there is halt there will be a break
Hence it is quite fortunate that there are signs
of greater caution in all lines, that corporations