The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-03-09
STOCK MARKET WEAK
RallyFails to Continue When
Bears Make Attack.
STEEL COMMON IS ATTACKED
New Low Records for the Year Are
Made in New York Central, Union
Pacific. Pennsylvania, and steel.
Southern Railways Dividend Not
Passed Nor Was Ii Reduced.

New York. March S.-Although the stock
market to-day was extremely confused
and Irregular throughout. it was generally
weak, and it had to be admitted at the
close of the market that the forces ut
work for a decline in values were as COM
pletely in control OF affairs as they had
been at any time previously during the
week At the end of business yesterday
speculative sentiment was greatly de
pressed over the failure of the market
during the day TO hold its rally from the
extreme fall of the day previous, and
pessimism in the Wall street commission
houses concerning the immediate future
of prices was more distinctly marked
than at any time in the course of the
present year.
All this served TO encourage spectators
for the fan to renew to the utmost their
efforts in the early trading to-day TO bring
about a further recession in quotations
and that these attacks were successful
was shown by declines made in the first
half hour of business running from two 10
five points in many Of the principal stocks.
It seemed, however, to close observers Of
transactions that this onslaught did not
produce as greatly as it had done hereto
fore a genuine liquidation OF securities,
and that the bulk Of the selling of stocks
was. in other words, of a purely specula-
tive nature.
Whether OF not this was true, the mar
ket rallied with d good deal of vigor, and,
after midday, WAS again at a level well
above that made at the end of the stock
exchange session yesterday. But in the
afternoon another furious attack was
made, large blocks of the leading stocks
being pressed for sale without regard to
price. and the market left off at almost
the lowest point of the day, and at "a net
decline as rule from one TO three points
in the active issues The story of the
days market was only that of seemingly
causeleSs. at times contradictory, and al
WINS sensational, fluctuations Of most Of
the important stocks The Great Northern
preferred and Northern Pacific shares did
not hold SO firmly against the general
trend of the market as they did yester-
day and the day before. although the
Reading common shares were still no
table exception 10 the prevailing weak
ness closing at a net gain OF ~ points.
New Low Records Established.
The price Of Reading common. however.
rose and fell during the day within
range OF S points. New low records for
the year were made in the New York
Central. Union Pacific. Pennsylvania, and
the United States Steel shares, and the
general market closed at the lowest range
touched for nearly two years
Search for explanations regarding the
movement Of prices to-day was a fruitless
endeavor.
Prospects. or what were thought 10 be
such, OF dedrer money appeared 10 be
more or less disturbing 10 the London
market. and resulted in a rise there In
discounts and a decline in investment
stocks The large movement of gold
from London to South America, particu-
larry to the Argentine Republic. exercised
"a depressing effect of values upon the
London market and as the drain of
funds tends inevitably to reduce the
chances of an early reduction in -hc
Bank of England's discount rate, its
effect is nquesti0nably of worldwide
character.
The directors of the Southern Railway
Company at their meeting to-day, did
not pass or reduce the dividend rate on
the cOmpany's preferred stock, as il was
Tumored yesterday they might, and the
quotation for the preferred shares rallied
when the decision of the directors was
made known
Naturally, however, prospects of con-
tinuJtiOn of the dividend rate at its
present level are menaced by such fall
ing of in the net earnings OF the company
as has been shown during the first SIX
months OF the current fiscal year.
Attack Made on Steel Common.
As much feature Of the market to-day
as anything was a particularly determined
drive at United States Steel common stock,
which was accompanied by sales Of the
stock amounting TO One-sixth OF the total
volume OF trading, and which caused the
unusual fall IN the price of the issue for
"a full days trading Of 21z points. The
only possible pretext that the spectators
who engineered this movement could as
sign for their action was the supposed
cancellation of orders requiring the use
of iron and steel materials by the railway
companies, but as a matter Of fact, al
though cancellations of this kind have
been made 70 some small extent, they
have been more than Offset by the receipt
OF orders for other business. and the out
lCok for the affairs of the United States
Steel Corporation is as brilliant as it has
been at any time thus far for several
months.
\ reason offered for the heavy sales Of
the Union Pacific and Southern Pacific
stocks was that there was little doubt
that the government would shortly begin
suit To compel the Union Pacific com
pany 10 divest itself Of its control of the
Southern Pacific organization; but this
and similar suits by the government have
certainly long been anticipated in Wall
street as the result of the Interstate Com
fuerce Commissions recent investip pa tfon