The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-04-01
CONTINUED DROP
IN STOCK MARKET
Pressure of Selling Is Beyond
General Expectations
RAILROAD STOCKS HEAVY
The Market Is Interested In Probable
Course of Erie Railroad Shares
and Outcome of Meeting of
Atchison Directors.
RAILROAD STOCKS HEAVY

New York, March 31-Dull depression
hung over the stock market leading up
to something like crash at the last to-
day. There were some developments
which were pointed to as being respon-
sible for the drop in prices. The tendency
toward reaction finds a more general ex-
PLANTATION. however. in the fact that the
rise in prices had been pushed to its
feasible limits by all the devices available
to skilled speculative leadership and tbs
natural attraction of the high prices es-
tablished brought out a pressure of sell
ing which was beyond the capacity of the
supporters of prices to absorb The
special depressing factor today was the
obscurity surrounding the intended course
of those controlling the Erie railroad
property. The adjournment yesterday OF
the directors without promulgatins any
plan for meeting the impending financial
requirements of the company was disturb
ing to those holding The securities of the
company. Besides the interest amounting
to about $500,000 on convertible bond is
sues payable tomorrow, and the $5,oooOOO
on one-year notes which fall due on April
Q. and which sold today at 81, there are
known to be other heavy floating liabili-
ties to be met. The view that the COM
pany will be safe-guarded from bank
ruptcy was sounded from great interests
at the command of the great banking
house which is the principal sponsor for
the company. That this assumption of
means of rescue did not entirely reas-
sure all holders of the securities was evil
dent from the wide declines at which
bonds of different classes of the company
were held at the stock exchange
There was suggestive sympathy in the
movement of issues of companies under
the auspices of the same bankers, and
which are similarly Strengthened Tor
financial means to meet urgent require
nents A line of policy TO be adopted by
an authority so influential in the finan-
cial world will be regarded as an express
sion of opinion over the future course OF
affairs, at least those concerning railroad
properties. That the financial prospects Oh
railroads are not bright is brought home
to conviction by this episode. Not only
the notes of the Erie, but those OIL ran
road companies of high grade continue TO
be quoted at varying discounts and at
rate of return wholly out of line with
the interest rates to which loans on time
have fallen in the money market Inc
provision for the maturity of $6Ooo,ooo OF
Rock Island AZ per cent notes alleng due
tomorrow includes an offersto holders for
q .one-year extension at per cent and
apparently the attraction of this offer has
not been sufficient to deter a consider
able norton of the note-holder from pre-
senting them for redemption. Those I'M
nropitious conditions for financing railroad
requirements are a serious impeachment TO
the setting on foot again of railroad ac-
fivities in the way of outlay Tor I'M
provements and betterments
The prevailing mood was reflected IN
the uneasiness over the possible reduction
of the dividend on Atchison at the meet
ing of directors, which is scheduled to
take place tomorrow.
Action on the Anaconda dividend was
expected today, and when the session
drew towards a close without any an
no,ncement on the subject rumors were
circulated of reduction. The declara-
tim of introduced dividend, however,
failed TO rally the market, and last
nrices was practically the lowest and with
signs of a good deal of disorder. Declines
of To 2 points and over are general.
Bonds were heavy. Total sales, par
value, $2,3S600O.
limited states bonds were unchanged on
call