Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1907-03-15
PANIC ON MARKET
IS FELT IN
B|SbEE
Effects of Tremendous Flood
of Liquidation Are Serious
Local People viii Suffer
Heavily.

The effects of the federal investiga-
tons into the methods used by rail-
road magnatcs in utilizing the pro-
ceeds Of big bond, issues to manipu-
late the stock market instead OF ex-
pending it in improving the various
systems, so that a day or two would
pass without a Collision or a derail-
ment costing human lives, were first
felt in Bisbee 10 noticeable extent
during the past couple of days. Dur
ing the last forty-eight hours a panic.
only surpassed by that of 1892. when
large financial and commercial insti-
tutions went to the wall, has reigned
on the various stock markets. Several
stocks h: We declined as much as 80
points. and according to the advice of
eastern brokers the end has not come
yet.
There does no. seem to be any
| doubt but that the present unrest and
timidity on the part of the public to-
wards the stock market is due to the
fact that in the various Investigations
conducted by the Interstate Commerce
commission into the methods employ
ed by the managers of various rail-
road, fraudulent and frenzied financial
coups have been exposed, which stag
gered the belief of the people.
The first stocks to suffer when the
crash came were railroad securities,
hundreds of millions of dollars worth
of which are on the stock market and
as natural consequence, shareholders
were forced to sacrifice their hold
ings in the copper and other industries
to cover losses which soon began to
pile up. The selling of industrials
on such an enormous scale naturally
brought about big slump in these
issues, so that practically the entire
| stock market is demolaliZed.
1t is a well known fact that local
business and professional men are
heavily interested IN the various
stnrks. and that many of them have
bought certain issues on margin;
,H.4Ia means mat VITA every consId-
cradle slump they have TO cover losses
in order to stand any chance of get
ting out even. Many of them are UNI
able to supply the call for more mar
gin and lose every dollar they have
invested. i,
Advices from the large eastern
brokers yesterday stated that no fail
ures had been reported up to closing
time, but were looked for at any min
ute. Whether it viii be possible to
stem. the tide OF liquidation in the
face of big failures is a problem the
result of which no man can tell In adj
vance. p,
That there will be failures reported
shortly is evident, when one stops
to consider the. enormous loss which
a slump Of only a few points entails,
and compares it with the losses entail
ed by a slump Of from TO 80 points
in every stock on the board. The
big financial institutions are forced
to call in all demand loans in order
10 protect themselves against a posi-
he run, which might result gfrepa any
kind of a runor. and this will leave
the big operators without any re
sources.
If at the opening of the market this
morning the big operators have not
summoned enough strength to take
care of whatever is offered, this fact
will soon become known and stocks
will be practically thrown at the mar
ket, causing still more declines.
Advices from the east last night
stated that the government had taken
up S25,000,000 worth of bonds. thus
putting this money into the market.
but this will have very little effect
unless the big operators can back
II up with a great deal more.
Although shareholders are hoping
for turn of the time, the outlook is
very gloomy at the best. and it is UNI
doubted that another day such as yes
terday would result dfsastrously for
many local people.