The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-03-15
VIOLENT DECLINES
AGAIN IN STOCKS
Sudden and Acute Outbreak of
Renewed Weakness
DUE TO PUBLIC HOSTILITY
Dependency In Speculative Circles
Railroad Authorities In Condition
of Anxiety and Even Fright
at the Prospects.
DUE TO PUBLIC HOSTILITY

New York, March 14.-Liquidation was
of volume and character today such as
has not been witnessed on the Stock ex-
change since May 9, 1901, when the de-
velopment of corner in Northern Pacific
precipitated one of the severest short
panics ever seen in the. New York mar
ket The extreme violence of the de-
clines on that occasion was due largely
to the fact that it broke in abruptly on
the period of boom and rising prices. To-
days demonstration was radically differ
ent in that it succeeded a prolonged pc
riod of liquidation and severe declines In
prices Not only had much been accomp-
lished towards the necessary liquidation
before the present break but the action
of the market had begun to reflect re-
turn of confidence early this week, and
general conviction had grown up that the
worst was over.
The sudden and acute outbreak of re-
newed weakness today owed most of its
violence to the feeling of dependency in
speculative circles regarding the enects
of the public agitation against corpora
lions, and the continued hostile trend OF
legislative measures against them. Spec
ulative circles are disposed to rely on
their own information and deductions as
to the extent and the significance OF these
Developments The extreme sensitiveness
of sentiment on the subject is founded
upon suppositions of what the great au-
thorities in the railroad and financial
world think on the subject. The recent
events have created the impression that
these authorities are in a condition of keen
anxiety, and even fright about the pros
meet thew have to face in this matter.
Some of the steps taken with the In
tention of allaying apprehension on the
subject seem to have been principally in
strumental in aggravatins It, This was
notably true with a visit to Washing
ton early in the week of ]. P. Morgan
with the avowed purpose OF acting as
mediator between the President and the
railroad companies in an effort TO 1nouce
the President to take some steps TO aiiay
public apprehension regarding the credit
of railroad companies. There was
,nomentary sense of relief manifest On the
stock market of the early part OF the
week without any clear idea being en-
; tertained of the steps to be taken or the
purpose that would be served by tns"i -,
s..s- ssupposition was ente .r,sasvre wa
80 he taken at Waashhfs ffssr I've which would
nut a. new face on the matter. The panic
broke out on the Stock exchange today In
connection with dispatches from WASH
ington to brokerage houses that no
Change Of policy or of administration was
to be expected in Washington. This APP
pealed strongly to the speculative mag
inaton and fears as sweeping away the
last bulwarx of protection for the railroad
companies from the onslaught of indig-
nant public disapprnvai. and even threat
ened connscation. Speculative operators
saw this view of the situation confirmed
in the mysterious and overwhelming out
pouring of stocks which they attributed
to capitalists who hold controlling inter-
est in the great railroads
The suppositon that railroad capitalists
held and opinion of their precarious situa-
ton has been fostered by their attitude
before the public, and the complaints and
even appeals through public channels
which they have been making recently.
There came into the excited market today
also a rumor that differences had arisen
between Kuhn, Loeb & Co. and I. Fl.
Hartman which had prompted call on
that capitalist to take up his vast hold
ings of stock with that firm. This ru-
NOR was authoritatively denied, but the
fear it engendered had its part in the
decentralization of the day. The excited
market was accompanied by rise in the
call loan rate to % per cent, and time
loan market was practically unquotble.
This gave rise to fears of overshraned
credits in one direction and another, ru-
mors pointing especially to the market
for copper securities.
Bankers asserted without reserve that
the most exhaustive and painstaking
scrutiny of conditions failed to show any
threat of money trouble or embarrass-
ment in spite of the enormous losses req
resented by the shrinkage in quotations.
This is considered the most remarkable
feature of the present remarkable situa-
ton.
Undoubtedly discrimination against some
stocks in collateral for loans and their
throwing out had to do with much OF
the selling pressure Yesterdays fears of
foreign troubles were proved entirely I'M
founded by today's developments. The