New-York tribune., 1907-05-28
ANOTHER STOCK DROP.
NEW LOW RECORDS MADE.
Securities Fall, but Grain Goes Up
to Highest LereI Yet.


Excited markets developed in Wall Street yes
terday, with new high records in wheat and cot
ton for the year and a violent collapse in .securi-
ties in the course OF which many issues sold
under the low points recorded in the March
panic. The decline in stocks. however was not
so violent it March IL but following
the extreme weakness of last week and attended
b. "a much genuine liquidation it served 10
create much uneasiness in speculative quar-
tiers as the record movement early in the spring
The decline was not based on factors affecting
TO any extent the intrinsic worth of investment
values. the movement representing in great part
the aggressive operations of the professional ee-
1nent and the forced selling by holders who were
compelled TO part with their securities to raise
cash to meet pressing necessities and in some
cases because they did not have enough margin
longer TO warrant their brokers in carrying
them.
Weakness extended to all parts of the list
with the heaviest pressure in the Hartman
shares. the Hill issues. Reading Consolidated
Gas, Delaware & Hudson. United States Steel
Amalganated Copper, Canadian Pacific. South
ern Railway preferred and BROOKLYN RAND
Transit. New York Central and Pennsylvania
were relatively firm. but there were few stocks
in which any degree of strength was shown.
feature Of the selling was the liquidation in
SNei Si-@ieS 6S <4udIDS Express. which lost 4
points: Atlantic Coast Line Brooklyn Union
Gas, Delaware Lackawanna & Western Illinois
Central, 500" preferred. New York Air Brake.
Pullman and Third Avenue. the operations in
these issues clearly indicating the necessity on
the part of some holders 10 raise funds TO meet
commitments in other parts Of the market. The
decline was not accompanied by anything ap-
preaching Generalization. and before the close
prices rallied TO a small extent under the fnffu-
ence Of covering Of shorts. which due to the
practical exhaustion of the selling power.
MANY RU1IoRs AS TO CAUSE.
In the day there were many rumors bur few
facts regarding the market and the underlying
causes Of the selling pressure. Gold exports
were announced. but this movement was not OF
sufficient size Importance in view of the
cheap rates for call money to attract Iiquida-
ton. II was said that James Brant Walker
who made large amount OF money N the
March decline, had been active the bear side
of the market. It reported that the
called Rock Island crowd had been selling but
This WAS officially denied.
TIE fine work Of "Jacky'' Field appeared to be
suggested by the character Of dealings in GER
tain issues. while the extensive selling in Con-
soldated Gas and the pressure against the Ear-
rman stocks represented TO many minds the
operations Of James R. Keene. AS a matter of
fact the chief cause Of the weakness the
evidence of genuine liquidation. This nquida-
ton naturally attracted pressure from the pro-
fessional element. which in turn RESPONSE
bic for the reaching of stop loss orders on spec
uiatveIy held long stocks, the latter being es-
peeally pronounced in Reading and United
states Steel common. The latter made a new
low record for the year. but Reading kept few
points above its low figure in March, when it
sold at 81.
The continued weakness in the stock market
,mpresses many observers with the view that
there is a significant personal history behind it.
i is said in the hest rosted quarters of the
Street that many Of the larger operators who
hurt in the March smash, and who for a
tine we're carried by stronger interests, have in
the last few business days been compelled TO
throw their securities on the market. 1t is also
said that the large obligations assumed by many
bankers in financing the requirements of the
railroads have placed them in a position that
makes il practically impossible for them TO eX-
tend assistance to their friends who have suf-
fered severe losses z result of the long period
Of declining values.
Some big names are mentioned in connection
with the losses in the stock market or from the
decline IN values, and so-called Hill and Harri-
man interests are said to be badly hurt. Many
names mentioned are those of capitalists whose
financial s0lvency is beyond doubt, but il IS
known, nevertheless, that they have extended
their opera atoms too far and now being com
reled 10 liCUIGate. II is feared IN some circles
that interests heavily committed 70 the new Sc
Guilty. financing which has been under way IN
the last six months viii Re required to sell stiil
more stock to take care of their subscriptions
70 undertakings as they in in the next
few months. and this possibility is causing con-
siderable apprehension.
ADVANCE IN GRAIN.
The advance and excitement in the grain and
cotton markets yesterday were based entirely
upon weather reports. which were exceedingly
natavorable though it was thought than
actual conditions in the agricultural section OF
fhe country warranted. Reports of rain in
Kansas in the afternoon caused heavy selling
Increment the Produce Exchange. but the
general position Of the market was not en-
oouraging to the bears on wheat.
Throughout all the excitement In the various
markets cali money did not get above per cent.
Can funds matter of fact were unlendable,
while there was little borrowing demand in long
naturities and indication Of a material
Grange in the position of the market for some
c1ne 10 come, barring the development of big
god exports, Of which there appears to be no
easnce. Local bankers believe that the move
fhent will be less than s1O,00oOO0. an amount of
money which the local institutions can easily
spare
Much interest is manifested in banking circles
ever the arrangement which win be made by the
federal Treasury to pay the maturing govern
iaent IS. which have not already been redeemed
~ ~ refunded, bur so far no information has come
@ @.Iesn washington TO the intention Of the Sec
tteleIg t.Gg Q! the Treasury in the matter. Many
bankers believe. however that the Secretary will
simply draw checks ON the denositarv banke
VIE government funds are held rather than
nM -c-1taM tne money from the banks to the
fror1 ,,S,+ saulIs 9 or pay out the amounts due
government deposits "