The Washington herald., 1908-06-20
RELIEF FOR MARKET
Traders Breathe Easier After
Convention Closes.
PRICES STRONG AT OPENING
After First Hour Decline Begins and
Continues Uniformly Throughout
the Day-UnfavorabIe Eject Pro-
duced by Decline I'm Union Pacifc's
RefundinE Bond TO Lowest Figure.

New YORK, June l9.-lt is a TAR Ques-
ton for debate. perhaps. whether the
considerable declines IN the stock mar
ket prices to-day were the result OF sell
ing Of stocks or the sort known as
EqulGation upon the announcement
Nthis having reference. OF course, TO the
termination Of the proceedings at the
Republican national convention, in the
way generally anticipated-or a more
careful consideration by professional
Spectators OF these matters OF financial
influence proper. which were dlsregarded
yesterday in the concentration OF inter-
est upon the political situation.
The reasonable probability is that both
these causes combined TO produce to-
days weakness. There is no doubt that
a prime factor in the advance in the
market for nearly thirty days past has
: been the expectation that the result OF
the Republican national convention would
be that which was yesterday realized.
A certain amount OF proht-taking was,
therefore. inevitable when the news
came out. and this liquidation was GER
tainly accelerated by the fact that the
preliminary advance in the market to-
day was by no means as great as was
confidently predicted would take place
es soon as the most gratifying Of all
contingencies passed into the realm of
facts.
Market Strong After Opening.
The market in the first few minutes
after IL opened hardened somewhat. and.
indeed. remained strong for about half
,an hour. but the gains were, in nearly all
instances, fractional. and when the profit
taking began II carried prices down with
It. with but little resistance. corroborat-
ing in a rather noteworthy way the
opinions Of many observers Of the trad
ing recently, who have constantly main
tained that the market was I'm a greater
or less degree hollow. in a speculative
sense-that is 10 say. that IL would be
found when a test was made that It
would move downward just as rapidly
as II had previously upward.
Wall street was. however plainly sur
feited with political discussion, and was
in a mood to turn fits mind 10 matters of
direct financial Importance and there
was a universal dwelling upon the an
nouncements OF the dividend reductions
that were made yesterday. and upon the
indications that the era Of curtailments
OF this order was not yet ended.
Especial pressure was naturally brought
70 bear. under the circumstances. against
the Louisville and Nashville. Baltimore
and Ohio. and Republic Iron and Steel
preferred stocks. the New York Central
and other leading shares also participat-
ing prominently in the decline
Union Pacific Down.
Union Pacific common. as the most ac-
tive stock in the market dropped more
than any other, the extreme fan here
amounting 20 nearly points The reduc-
tion OF the dividend on Louisville and
Nashville stock. which was not known
/. until after the close OF the market yes
terday. took many spectators by sur
prise, although such action OF the di-
rectors OF the company has been fore
shadowed with reasonable plainness. and
the supposition became more or less gen.
eral that I'm view Of the extent Of the
shrinkage IN the Baltimore and Ohio's
earnings. the dividend rate on Baltimore
and Ohio common stock would be cut
not simply from TO per cent. but from
6 10 4 per cent. 1t was the commonly
expressed opinion, moreover. that this
lessening OF distributions OF the railways
was in the nature Of a forecast Of a gen
eral movement toward a reduction Of
railway wages.
The fail IN the market went on with
\ unifOrmness after the first hour OF busi-
ness and was not accompanied by any
adverse development IN addition TO those
occurring or the preceding day.
But an unfavorable effect was produced
by the fall in the Union Pacific new re
funding bonds 20 the lowest price yet
touched by the bonds in dealings OK the
security on the stock exchange, and this
particular and recent bond issue IS, in
deed. commonly spoken Of as being a
species Of hzzle