The Washington herald., 1908-04-03
MARKET is LISTLESS
No Meeting of Erie Direct
OrS Has Bad Effect.
STOCKS CLOSE AT DECLINES
Duliness During Greater Part of
Day Followed by Drop Upon Learn
Ing that No Quorum Was Present.
Doubt Expressed as 10 Attitude Of
Holders OF ShOrt-time Notes.

New York, April 2.-The most notable
fact about the stack market to-day was
that activity in II was very sensibly di-
minished as compared with the dealings
previously throughout the week; and the
suficing cause for this appeared to be
continuing uncertainty regarding the up
shot Of the immediate exigencies confront
ing the Erie Railroad Company. All dur
ing the day the security market shifted
back and forth irregularly. the course
OF prices representing only the varying
hopes and fears OF the stock exchange
room traders regarding the outcome Of
the matter referred TO. There was not
the slightest evidence of important buying
or selling, and the tendency of the market
was naturally under the circumstances
toward dullness and heaviness.
Erie Meeting AdjOurns.
In the late afternoon no little dIsap-
poiltment was1felt over the adjournment
Of the meeting OF the Erie directors
scheduled for to-day for the reason, as
was announced. that quorum Of the di-
rectors could not be secured AS this
was the second time in the week that
such postponement had been taken. the
speculative element professed TO regard
the incident as ominous and sold stocks
with some freedom so that the principal
issues generally closed at declines.
The declines were the more marked, in
asmuch as just before this the market
had enjoyed a little spurt and the day
closed with speculative sentiment con-
fused and more or less inclined TO be
downcast Il is probable that the un-
certainty Of mind on the part of the pub
lie regarding the Erie difficulty is due di-
recty TO the fact that there is about the
same uncertainty in the minds Of those
directly charged with the management Of
the Erie's affairs.
II is very well known that the chief
point Of issue here is the matter of maxi
ing provision for the payment Of the S.
5oo.0O0 short-term noninterest-b bearing notes
that fall due on the Sth instant 1t has
been commonly supposed that the hold
ings Of these notes were concentrated.
and the reason for hesitation in arriving
AZ a decision concerning the method OF
meeting the obligations was the different
views Of the large holders Of the notes as
10 what was tine best policy for the Erie
70 adoptNgeRerally in the situation.
Holdings Widely Scattered.
The truth Of it, however that the hold
ings OF notes are widely scattered. the
owners OF only a small proportion Of
them being known 20 the Erie board.
Whether therefore. the greater number
Of these holders will consent 20 an axten-
sion Of the notes or viii demand payment
in cash is something that cannot be abso-
lutely ascertained until actual test is
made, and it is manifest that in any event
preparation VIII have TO be made TO pay
cash 10 such Of the noteholders as de-
mand it.
on the face Of things. OF course. II |
would clearly seem as II those possessing /
such obligations would jump at the |
chance Of exchanging their old unsecured I
notes for new secured notes with the as
surance moreover that the additional i'm |
mediate requirements Of the Erie In the /
next two or three months would be met
by the capitalists having the interests OF |
the Erie al heart. and Il will certainly be |
somewhat surprising II the outcome OF /
th~ matter does not proceed along these !
lines.
There was little else in the news to-day 1
TO cause changes one way or the other in /
market valuations.