The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-28
STOCKS AT LOW MARX
Heavy Selling Due to Harri-
mans Testimony.
READING DOWN FIVE POINTS
One-tbird of the Entire Volume of
Trading Is in This StOck-Firmer
by senate of AIdrich Financial
BiII-DepressiOn Follows.

Tone at Opening Owing to Passage
by senate of AIdrich Financial
BnI-DepressiOn Follows.
New York. Feb. 2I-Although the rela-
tive activity of the stock market to-day
was decidedly increased-the dealings be-
ing 10000 shares greater than they were
yesteriay-and the market again exper-
fenced a notably decline. the greater num-
Der of the principal stocks selling at new
low records for the year. the day was
singularly barren of developments to
which could be specifically ascribed the
course Of values
Prices at the opening were somewhat
above their yesterdays closing level and
retained their advance during the first
hour of business, owing. as ii seemed, to
the firmer tone manifestly ruling in the
foreign markets, 20 the passage of the
Aldrich financial bill in the United States
Senate and To 4 continuance of the buy
ing hack of stocks sold speculauvely for
the decline which was in evidence in the
las+ half hour Of business on Tuesday.
But once this covering process was
completed the market Cnce more began to
read its familiar path Of extreme dullness,
followed later on by a heavy fall.
Stories were current that this or that
speculative clique, after having retired its
short contracts with little difficulty, was
once more attacking the market with
great bcldneSs and freedom. Signs Of OPP
erati0ns of this sort were, indeed, plain;
yet they were no palmer than that hQui-
dation in the market was also occurring
Operations for the fail. which do not in
duce any selling of stocks by those who
actually own them or are carrying them
for the rise. must manifestly be speedily
terminated and at a less TO those who
originate them and the joint circum-
stances that the decline in the market has
progressed TO such lengths as have been
witnessed and that prices Of stocks have
in the meantime displayed so small de-
gree of rallying power are the best proof
that liquidation has been. after all, the
most potent factor in the market itself.
Drop in All stocks.
Nearly all the leading stocks to-day
made net declines greater than full
point closing prices being somewhat
above the lowest OF the day, while a
larger fan was recorded in the case Of
the more inactive shares. There were
those who thought that the days market
mated by the particular weakness dis
played by the Reading common shares.
Dealings IN this security constituted more
than one-third of the entire volume of
trading, and the stock made an extreme
fall of IA points. a portion OF which re-
covered before the close Rumors cir
oulated as they have done for some time
past. and were again officially denied.
that the Reading management was about
90 make an issue of shOrt-term notes IN
the near future
The most plausible explanation Of the
weakness Of the stock is, of course that
speculation in it had carried its price 10
a figure absurdly high for that Of a mere
per cent dividend paying stock, and
that at its ruling quotations several
months ago, "a large quantity of the stock
was placed upon the market for the ac-
count of the corporate interests whose
large and supposedly locked-up holdings
OF the Reading shares made it easy for
outside spectators to elevate the price
Of the security TO lofty figures.
There was, however, no doubt in the
financial district to-day as to the general
causes responsible for the break in the
market. There was a strong feeling that
the revelations made during the week be-
fore the Interstate Commerce Commission
would result in legal proceedings Of one
kind or another. brought against the in
dividuals guilty of the iniquitous trans
actions in railway management there dis
closed
That the worst possible impression has
been made, not merely in Wall street. but
throughout the country. by the testimony
adduced in the present hearing, is now
undoubtedly and momentariIy the effect
of this must be TO lessen popular conf
Haura I'm any and all ifs1-aN STOOLS c
investments.
Books Are FaIsifcd.
While comment in the financial COM
munity to-day covered naturally the
whole range, topics that were the sub
jects of the current government inquiry
into matters were perhaps more talked
about than others. One of these was the
admission by the Hartman management
OF the fact that the books of the Union
Pacific Railway Company had been 50
falsihed in 1903 that the company's annual
report for the fiscal year ended June 80
in that twelvemonth, credited the com
pany with being the pOssessOr Of the 300
COO shares of Southern Pacific stock that
had been in fact previously sold to a pTi-
vate capitalist on account Of the exigen-
cies arising out of the suit brought
against the company for the purpose OF
questioning its right TO control the South
ern Pacific property.
Severe aninadveTsiOn to-day was ok
pressed concerning that portion OF Harri-
mans testimony yesterday in which he
referred TO the meeting of the directors
OF the Union Pacific Railroad on July -
last, at which time it became evident
that dividend on Southern Pacific stock
was imminent. Hartman declared that
he stated to the Union Pacific board that
ha fraaea Of F,a
Southern Pacific were so surprising that
he thought the board should wait until Il
received accurate figures, and If these
were found to be correct they would war
rant a material increase in the Unior
Pacific dividend.
The significance Of such discussions
among the Union Pacific directors at this
time lay in the fact that there was Their
in progress a suppression of all published
reports of the earnings of the Southern
Pacific Company on what is now disclosed
10 be the false plea that the San Fran
cisco earthquake had so unsettled tht
Southern Pacific business that il was mo-
possible TO issue any reports of earning,
whatever. There was. in other words
all through last summer no statement
issued TO the Southern Pacific stockhold
ers Of the monthly earnings Of their com
pany, and it was not until a day or 5,
before Southern Pacific common stocH
was placed upon a ) per cent basis that
the stockholders Of the company were al
lowed TO gain any idea Of the large profits
their corporation was making. Weeks be
fore the dividend declaration the directors
Of the company had all this knowledg,
and kept it to themselves
NEW YORK MONEY.