The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-03-03
ANOTHER ATTACK Of
WEAKNESS IN STOCKS
Sharp Temporary Rally After
Appearance Bank Statement
WESTERN GROUP BREAKS
softness Connected With Reports From
Washington That Interstate Com
mission Would Next Turn to
Northern Pacific.
WESTERN GROUP BREAKS

New York, March 2.-The stock mar
ret today had another of the spells of re-
current weakness which have character
lied it all the week. There was sharp
rally after the appearance of the bank
statement, but it did not hold, and last
prices for some of the conspicuous stocks
were the lowest of the day and of the
week. The western group broke badly, es-
pecially the Hill stocks. Their weakness
was connected with the reports from
Washington that the interstate commerce
commissions inquisition into the subject
of capitalization would turn next to
the Northern Pacific and its reorganiza-
ton several years ago. A disturbing eff
feet was produced, too, by the reports
outcome of the Hartman investigation to
compel the giving of testimony which was
refused, and to dissolve the Hartman
combination of railroad properties.
Fear of strike of Pennsylvania railroad
employees were fostered by the large vote
reported in favor of a strike by the COM
pany's yard men. The violent declines
IA eiic ioSoi tidtliOl SlONhS, iSd W tiiS
PETERBOROUGH Metropolitan issues, was not
explained, but was a sympathetic effect
on the general weakness of the mar
ket.
The bank statement was better than ex-
pected, the cash decrease being limited to
$2,100,000, compared with early estimates
today running as high as $5,0OO,OO0. The
s4,274800 loan contraction in view of the
heavy financial operations of the week, in
GLIDING the preparations for the March
settlements, also was of good effect on
sentiment. Large arrivals of gold were re-
ported in London from South Africa but
$500000 was withdrawn from the Bank of
England for shipment to Argentina. The
time money market here was called
strong at a fractional advance of rates.
New York bids for the gold arriving in
London were considered unlikely, in view
of the small change in conditions in the
International exchange market for several
weeks past.
Total sales of bonds, par value $IfS,0
The entire uncertainty of speculative
sentiment over the outlook is the infer
ence suggested by the constant reversafs
of the movement of prices in the stock
market during the week. A movement in
one direction did not extend beyond u
days trading There was severe depres-
sion at times, however. and the declines
carried the average level of prices to tho
lowest of the year. This showing was
mostly due to the severe declines in few
stocks, principally Influenced by technical
market considerations. Recurring rumors
of the necessity of note issues to hnance
improvements under way. accounted also
for some cases of special weakness In
the majority of stocks the prices touched
4 ar 70 below the nOint OF the
maximum decline in January. The appear
ance of support at about the Level, and
the supposition that accumulation was go
ing on for important interests added 10
the confusion of sentiment.
The interstate commerce commission
inquiry into the Hartman railroads oc-
cupied so large share of attention as %
almost exclude any other subject The
coming of this inquiry has been in fact
an influence on the stock market for
long time past. The nature of the disclos-
IRE to be made, and the substance of the
testimony presented were quite clearly
unforeseen, and this prospect has been
one of the notable factors of depression
Il, the market for some time.
The wide publicity given to the testi-
mony. the eager public interest displayed.
and the nature OF the general CRITICISM
evoked nv it of the methods and pfac-
iiceS revealed. MADE pcllious IMPRESSION
=. the financial world. A material growth
of dissatisfaction with the powers, en-
loved by the great corporations, is con-
sidered inevitable. The contention OF the
government authorities which prompted
the inquiry is that additional restraints
should be placed on the powers of cor
porations. especially over the issuance OF
capital. The purchase OF securities other
than their own and the making of higher
charges for service to the public mas
been strengthened by the revelations
brought out. New legislation, according
lx. is believed to be certain Inc nos-
t;1;3v of the public towards corporations
even in its present stage, is the cause OF
MANY misgivings on the part OF those
largely interested discouraging erect
Is looked for on any general demand Tor
securities. and renewed difficulties of Sc
curing new capital for projected enter
prises are expected.
The effect on foreign capital is especi-
e1ly feared In corresponding check