The Washington herald., 1907-02-26
MARKET IN Big DROP
New Low Levels for Year Is
tabliShed in Many Stocks.
GENERAL PUBLIC APATRETIC
london Not as Heavy n Buyer as
Last Week-DeDression increases
Hearing Come In-Fear Expressed
Investigation to Be Far-reachIng.

New York. Feb. 25.-The course of this
stock market, which has been declining
steadily for several days past. received
decided impetus in that direction this
afternoon, and the largest fall in values
in any one day thus far in the present
month was recorded. Many stocks, in
deed, fell TO new low levels for the year
aud the average price of stocks at the
close OF the market was also considerably
lower than it has been at any time since
January J.
What seemed TO be the primary cause
for the break in prices to-day was 3
cumulative feeling of discourag cement
among spectators resulting from the
apathy of the general public toward the
stock market, the continual hostility
shown to railroad interests both in Con
sress and in many State legislatures. and
the rather less hopeful feeling regarding
the future OF the money situation.
Added 10 the force of ali these influences
to-day was, very clearly, the renewal OF
the investigation held by the Interstate
Commerce Commission into the manage
ment of the so-called Hartman system
of railways.
There were no developments Of interest
to-day in the foreign market although
London houses here for the first time in q
week We're sellers of a moderate quantity
OF stocks. Copper mining securities or
the London Stock Exchange exhibited
great strength. but in other departments
the market there was dull It was re-
garded as a favorable development from
tile British point of view that OF
the $2,O00,0O0 gold laid down in the open
market in London to-day all was secured
for the account Of the Bank of England
south America Asks Gold.
On the other hand, financial sentiment
IN London Is getting to be more and mora
adversely affected by the large demands
for sold making in England for the ac-
count of South America; and it seems
to be felt there. too. that whether by
reason of the sale of so many issues OF
short term notes by our railway COM
panies or by trade balance more in our
favor than is commonly estimated. our
bankers viii be enabled to take gold I'm
quantity from London whenever they
wish to do so.
Here the security market was weak
almost continuously throughout the day
Il was lower at the opening than il
closed last Thursday, and continued de
pressed in the first hour Then il rallied
a little. but quickly lost its advance.
From then on 10 the close of business
the selling OF stocks increased, the
market becoming dull and showing no
resihency whenever occasionally the force
OF liquidation became less.
The depression was greatest in the final
hour Of business. and at the close de-
clines frequently in excess of two points
We're shown in the principal stocks. with
an exceptional fall of Il IA points in the
Anaconda shares.
Reading common stock appeared per-
haps more particularly under-pressure
than any other security commonly the
subject Of active speculation, and il was
the general belief that heavy liquidation
here was being carried on for the ac-
count of the speculative clique whose
buying and selling of the stock has 50
long played such a prominent part in
stock exchange transactions.
Hartman Makes Poor Showing.
Reports Of the testimony taken 1t the
Hartman investigation to-day that were
available during business were more or
less vague and general A very unpleas-
ant impression was made by the shifting
course which the president of the Union
Pacific Railroad Company saw fit 10
adopt on the witness stand and by his
general unwiIlingness to state frankly all
The details concerning which he was
asked.
It appeared for one thing that the Union
Pacific Company had lost over ST. ,00
on its purchases of its stocks of other
railway companies made since January i.
and that the affairs OF the company were
practically committed to the hands of d
small number Of individuals who were
managing them in what may be mOdeT-
ately described as in a daring manner.
II was also very clear that these man
ayers had been able in the past TO extract
Il vast personal profit out Of their opera
tons. In the case of the Chicago and
Alton Railway this was practically proved
that the syndicate in control cf the Chi
caEo and Alton Company sold in 1899 an
issue of 1859 per cent bonds upon
the property to themselves at d price of
500 "a bond and soon thereafter sold the
bonds to a life insurance company at
1860. bond making a profit at the ex-
pense Of the Alton of over S5.000,0o0
In general the feeling at the moment in
Wall street regarding this investigation
Is that il is likely to be fully as important
us that made of the affairs of the life in
sUrance companies in 1895. The injurious
effect Of these developments is manifestly
not confined simply to the particular rail-
roads concerned in the investigation or
10 the revelations Of personal corruption