The Washington herald., 1907-10-24
WALL STREET NOTES
Recovery Follows Panicky
Condition at Opening.
NEWS ALARMING
Report that stock Exchange There
Would Close Caused Fear for In
dustFiaIs, but Westinghouse shares
Alone Are Weak-SteeI Holds IN
Well Under Attack by the Bears.

New York. Oct. 23-If. when the chair
man of the stock exchange announced
the opening of the business to-day, there
was any one who doubted that Wall
street had entered upon another trying
day. his doubts were removed by the
initial quotations, which, in al! cases.
showed large recessions from the preced-
ing days final prices
There appeared to be about five sellers
to every buyer. and those who took stock
seemed willing to do so only at conces-
sions- Decentralization was imminent
when the-same support that had been so
consistently lost 10 the market on Tues
day, reappeared in sufficient volume not
only to absorb the flood Of liquidation.
but to lift prices well above their low
level
The nearest approach TO panic Wit
messed in any of the leading railroad
stocks was in Union Pacific. when that
issue, soon after the opening, dropped
from no 20 l0714. with the only intervcn-
ing sales 1000 shares at lO9 500 shares at
JOS. and 500 at 1921 This was the only
important instance OF au active railroad
stock declining a point at a time in rapid
succession. and relief came in time 10
prevent panic in the stock market.
Just as business was fairly started, the
news came from Pittsburg that the ex-
change in that city had decided not TO
open for the day This. Of course. created
a disagreeable impression. brokers inter
preting il as equivalent 10 an admission
that if trading was allowed 20 20 on a
panic could not be avoided. The reason
for the action taken by the heads of the
Pittsburg Exchange became clear when
the stock Of the Westinghouse Manufac-
turing and Electric Company began 10
break, followed by the announcement
that the Security Investment Company
was in difficulties, and this would involve
the appointment Of receiver for the
Westinghouse Electric and Manufactur-
ing Company.
The rumor that E. H. Hartman would
retire from the presidency Of Union
Pacific found its way to London or pos
sibly originated there. and The way the
foreigners regarded the matter was well
illustrated by the fact that buying orders
were sent over here, their execution 10
be contingent on confirmation of the To-
port In the afternoon the rumor broke
out here anew, it being asserted that the
subject Of Mr. Harriman's retirement had
been under discussion az meeting of
leading banking interests. but nowhere
was credence given TO this
Some Of the largest private banking
firms renewed loans at 6 per. cent. and
few Of the leading national banks put
out a moderate supply Of new funds at
the same rate. The effect was decidedly
reassurinE. other banks and bankers.
however. declined TO lend eXcent a high
rates, and brokers, in a wild scramble for
funds, bid up the price until it reached
g6 per cent a new high level for the
year.
There was very little time money to be
had, and as many firms and institutions
were calling loans it was inevitable that
there should be a large volume of Hquida-
ton It was marvellous how well the
market acted under the circumstances
Seldom In the history Of Wall street
have such crowds been seen as overfowed
the sidewalks and required the presence
Of a troop Of mounted police to keep them
in order. The galleries Of the stock ex-
change were crowded all day, but the
principal point of interest was the office
Of the Trust Company Of America. which
was busiIy engaged an day in paying out
money on the demands Of panic-stricken
depositors.
United states Steel. the most prominent
industrial stock, yielded only slightly
from the point which has heretofore been
the low OF the year. and aftecward raj
lied. so that at the close its price showed
q slight advance on the day. The other
industrials which rank next to Steel
Amalgamated Copper and Smelters-dis-
played almost equal powers of resistance.
and ended the day with no net price
change.
Baltimore and Ohio was a weak fea-
ture. making a new low record for the
year, and the same was true of Norfolk
and Western the liquidation in both these
stocks apparently coming from the same
quarter. The Hill issues. the Hartman
stocks, Reading. and most Of the active
members Of the railroad group made new
low records for the year.