The Washington herald., 1907-03-23
WALL STREET NOTES
Bears Drive Prices Below
Level Touched in Panic.
ERIE SHOWS BIG NET LOSS
Southern and Canadian Pacific Come
In for share of Pounding, Being
Depressed-Hardests Smashing Done
on shares Active in Losiaon-Union
Paciac sold Extensively.

New York. March 22-whether the
abandonment of work on the Erie in this
State was due entirely to the menace OF
the public utilities bill or the difficulty of
securing money on fair terms, the stock
was a target no one could miss to-day
The common. the first preferred. and the
second preferred each broke more sharply
than in the panic last week. Each
dropped far below panic prices. and when
the bear party was content with the
havoc wrought ia Erie 1t turned It's at
tention TO other active speculative shares,
with the result that il made good in part
its boast of the early days of the week to
drive prices down to the closing level OF
March H.
The lowest price on Erie common IN the
panic was 2 l-2. To-day it sold at a IL.
and closed at . Is; net loss. 5-8 points.
The first preferred and second preferred
closed yesterday at SO 5-S and 81 s-S. re-
spectively. as against closing prices Of
62 and 30 is on historic March Il The
first preferred lost 81 points and the
second preferred Is on the day These
other active speculative shares sold be-
low panic prices: Southern Railway. 20 Ia,
as against 20 5-S in the panic. and
Canadian Pacific l63. against l67. North
western barely escaped a similar fate,
Union Pacific had nothing to brag OF
when the day was over and most Of the
other shares sold lower than on any other
day since the panic.
The bear party had fresh ammunition
put in its hands. and determined TO use IT,
The extensive covering of the preceding
day, naturally weakening the technical
position of the market, was favorable
to a renewal OF bear tactics. There was
plenty of other assistance In the Erie in
cident, among which was reported apprs-
hension in London over the forthcoming
settlement. and renewal of the asper-
sions on +. II. Hartman IN interviews
printed in the morning papers.
There We're no reports of impending
failures. and they were not necessary.
Many brokers could read it as signih-
cant that the stocks subjected to the
hardest pounding were shares that are
active In the London market and are
largely held both IN England and on the
Continent The HIN stocks. St Paul.
the Steels, Atchison, Baltimore and Ohio,
In addition to those mentioned. were
subjected 10 great pressure, and It may
have been the purpose OF the bear party
10 make the London settlement as en-
baTrassing as the rumors indicated It
would be. T'his attack upon the inter
national list was accomplished by re-
ports that London was unloading in the
New York market.
That there was extensive selling Of
Union Pacific for London account was
agreed by many Senator Cullom's re-
mark about Hartman and the peniten-
tiary was not considered as calculated 10
renew confidence here in Hartman as a
man to handle other peoples money, and
the high standing. long experience. and
/ exalted governmental position of the
Illinois statesman is considered even
more likely 10 carry weight with in
vestors in Europe. To a greater extent
than in any other stock, il was thought
there was selling OF Union Pacific by in
vestors. The stock lost four points net
on the day.
Canadian Pacific, which prices & per
cent. with 1 extra, has been selling much
higher than other stocks paying fixed
I. per cent dividend. and many observers
I have wondered what reason there was for
its maintaining a price many points
above Great Northern, Northern Pacific
and St. Paul. In the stock OF every one
of the latter. il has been contended the
/ equities are quite as valuable as in Can
adian Pacific, and the movement for gov
I ernmental regulation of roads in Canada
/ is reported to be becoming as acute as
/ here. Yet Canadian Pacific has been sell
/ ing above 40. while Great Northern has
/ been struggling to keep above 40. and
Northern Pacific and St Paul have been
/ still lower. Accordingly, bear operators.
after the stock had shown a net loss of
s 3-S points to-day. said they had simply
/ started TO remedy a glaring Inequality
/ They predicted further breaks in the price
/ when London got TO iiquidating in earn
/ est. but 1t was reported that London was
| apt to preserve a greater degree of con-
/ hdence in a Canadian than in a United
/ States security. The bulk OF the stock
proved TO be held abroad.
''The State makes it it-impossible for us
to spend money for Improvements" said
an Erie official, but we have one conso-
lation, the State is having as much
trouble raising money for the Erie Canal
as we are Tor the Erie Railroad"
! banker associated with a house hav-
/ ing important French connections ad-
vanced the proposition that the curtail-
ment OF work on American railroads
I ought to encourage rather than depress
/ investors. He took the position that
/ with the traffic demands in years of rec
ord prosperity. the railroads had expend-
ed money too lavishly, and it was now
wei for them as general policy to
make money out of the improvements al
ready completed without going farther. A
policy Of retrenchment, under the cir
/ eumstances, should make investors feel
/ secure.
/ This view Of the situation, not previously
/ advanced, so far as known was approved
/ by other bankers. 1t was considered typi-
/ cal Of sentiment among people who 20 on
/ the principle of getting the money before
tthey spend It, or, at any rate. of knowing
positively where it is to be secured.
There was no news to account for the
/ decline in Southern Railway and the Steel
shares. Seemingly. they yielded to bear
attack for no other reason than lack of
support, In this respect differing not at
/ all from score of Others The reckless
ness OF attacks on prices generally, it was
said in this connection, was probably very
/ largely due TO appearances that the big
men have entirely withdrawn the support
rendered last Friday. There are big men