New-York tribune., 1907-09-13
SLUMP IN TRACTION.
PHILADELPHIA CHANGE.
attempted Fare adjustment Held
Mainly Responsible.
IBy Telegraph to The Tribune. ]

Philadelphia Sept 12-An unprecedented
slump in Philadelphia Rapid Transit STOCK So
day the not unexpected result OF the aei-
tation in this city over the corporations hnan-
ces. due to its attempt to readjust tareS Oh /"
basis which meant a large advance in us an
nuaI earnings The people would not stahd Ior
the proposition which meant the abolition Oh
all transfers. and then came rumors OF AL SUI 1"
affecting the company, making an onslaught
upon its securities inevitable.
The agitation broke forth with great violence
on change and before it spent it's force had
carried the whole group Of street railway silareS
down to a point where the slump represented
a paper srrinIxage of over $9.oO0.00O. Reams
of Rapid Transit and Union Traction were
thrown on the market regardless of price III
the forenoon the former stock broke from 1874
to 151b and the latter from 51a4 to A. both
marking new low records this movement
The collapse exceeded in severity all others
that these companies have ever experienced
The stampede began with the resumption Of bust
ness and before the pressure eliminated the price
of Rapid Transit receded Az points below that
which it closed last night The enornity Of
the fall is readily dIscernible in the fact that
the last assessment of 81 80 a share. which
added to the quotation Monday. almost
entirely lost.
Intense excitement prevailed. Banks called
loans when the fall was at its worst. and this,
!
sell at the best price. accentuated the down
ward movement
The primary Cause for all the trouble
really the pressure Of the assessment on Rapid
| Transit coming on top Of tight money market.
Brokers who had heretofore paid these assess
ments and charged them up to their customers
found themselves in a position where. because
OF the tfghtness Of money, they were unable TO
increase their line OF borrowings at the banks
and were therefore compelled 10 refrain from
/ asking accommodation. This not only forced
selling, hut took away support that could usu-
ally have been counted upon
on the heels Of this came the agitation over
the fare question and the spreading Of reports
Of possible financial difficulties in the companys
/ affairs. These were stamped by officials ~
downright falsehoods- The point was made
that there has been default that none was
likely. and that It childish to talk Of a
recevcrship
President Parsons ~ the Rapid Transit Company
issued official statement tonight regarding tho
financial status or the corporation and its ability
10 fu0l its obligations and make improvements
under way and needed betterments. In his state
ment which is approved by the board Of directors,
/ President Parsons says:
In vi"w of the false Turuors and charges respect
. make this official statement.
Ftrst-rhc company has floating Indebtedness
bank =" the amount of upward OF Nc9oyp
s346ois 81 the gross receipts for The Gr.t two
sg1o.&Br
Thrd-rhe cash balance OF the company and
complete all extensions and bottern"nts under way.
fourtl.-Thc company cannot make any chanEes
IN its rates Of fare without the consent OF the city
u contempIatee no CHANGES IN ltF free transfer
+ system except 10 correct the abuses Of same.