The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-03-15
SENI-PANIC ON
STOCK EXCHANGE
Great BunCheS of Securities
Thrown Overheard Regard
less of Price.
Union PACIFIC HARD HIT
ALL SORTS OF RUMoRs IN WALL
STREET.
UNION PACIFIC HARD HIT

I'll a violent character today, such as
has not been witnessed on the stock eX-
change since May 9, 1891, when the de-
,alopment Of a corner i'm Northern Pa
5fc precipitated one of the seVerest
short panics ever seen in the New York
market The extreme violence of the
declines on that occasion was due largely
10 the fact that it broke in abruptly upon
the period Of boom and rising prices.
rodav's demonstration was radically diff
ferent in that it succeeded a long pc
nod Of liquidation and severe declines
In prices Not only had much been ac-
c,mplshsd towards the necessary iiqui-
cation before the present break. but the
action Of the market hsd begun, TO re
fleet a return OF confidence early this
week and a general conviction had grown
ND that the worst was over.
The sudden and acute outbreak OF re-
newed weakness today owed most of its
violence 20 the feeling of dependency in
speculative circles regarding the effects
Il the public agitation against corpora
lions and the nearly universal trend of
legislative measures against them. The
extreme constituencies Of sentiment upon
the subject is founded on suppositions
Of what the great authorities in the rail-
road and financial world think upon tbs
subject Recent events have created the
impression that these authorities are in
"a
fright about the prospect they have to
face in this matter. Some of the steps
taken with the intention of allaying ap-
pIehension upon the subject seem to have
been principally Instrumental in aggra-
vatng IL. This was notably true of a visit
10 Washington early in the week of J..
P Morgan, with the aVOWed purpose of
acting as mediator between the president
and the railroads In an effort to induce
ne president TO take some steps to al
lay public apprehension regarding the
credit of railroad companies. There was
q mOmentary sense OF relief manifest in
the stock markets of the early part Of
the week. without any clear idea being
the purpose that would be served by
them. A vague suppOsitiOn was enter
tanned that some stirring measures were
10 be taken at Washington which would
Yut a new faee upon the matter.
The panic broke out upon the stock
market today i'm connection with dis
patches from Washington TO brokerage
houses that no change of policy or Il
in Washington. This appealed strongly
10 the speculative Imagination and fears
as sweeping away the last bulwark of
protection for the railroad companies at
the onset of the indignant public dis
approval and even Threatened cOnfisca-
ton. Speculative operators saw this view
Of the situation confirmed in the mystic
iiOus and overwhelming outpouring of
lists who hold controlling interests in the
great railroads. The superstition that
railroad capitalists heid this opinion of
their precarious situation has been fos-
tered BY their attitude before the public
aad the complaints and even appeals
through public channels which they have
teen making recently.
There came into the market today also
runlOr that differences had arisen be-
tween Kuhn Loeb q Co. and L. H HaF-
-fu Vy-hf 81 Ia =
that capitalist to take up his vast hold
lngs Of stock with that firm. This ru-
nor was denied, but the fear IL engen-
dered had its part in the decentralization
OF the day.
The excited market was accompanied
by a rise in the call money rate to y
per cent and the time loan market IVES
practically unquotabie. This gave rise
10 fears Of OverstTained credits in one di-
Tection and another. and rumOrs pointed
especially 20 the market for copper Sc
curities- Bankers asserted that the most
exhaustive scrutiny of conditions failed
to show any threat OF embarrassment.
This is considered the most remarkable
feature Of the present situation
The market had substantially recovered
AT one time during the morning, when
the wild liquidation in Union Pacific
started the decentralization in the whole
list. There we're some violent gyTations
due 10 the rush of shorts to secure profits
al various times, but the tone OF demor-
ahzation continued up 10 the close. The
intended plan of relief by the treasury
department. was not made known until
after the market closed. but very spe-
cific reports We're current of the intended
situation aboDt o'clock. without appre-
Gladly affecting the market.
Some OF the most conspicuous of the
days extreme declines were: Union Pa
cific. 25la; Reading, 2@4; Smelling, =,
Amalgamated Copper, 1S&; Delaware K
Hudson. 1871. and St. Paul, Northern Pa
preferred Anaconda. Pullman and Brook
lyn Rapid Transit. 10 to 1879.
Severe losses Of less amounts were uni-
yersal.
Bonds were but slightly affected by the
acute weakness Of stocks. but were gen
orally lower
United States bonds were. unchanged on
call