The Birmingham age-herald., 1908-06-13
STOCKS DECLINE
 SEVERAL POINTS Erie Financial Plan Has Adverse
 Effect Upon Prices UNION :PACIFIC UNSTEADY In Spite of the Fact That Bond Issue Is oversubscribed, Union Pacific Shows Weakness and Other
 Stocks Are Affected.
UNION PACIFIC UNSTEADY

New York June -12.-The weak re- origin in suspicion of the policy and In the market of the powerful financial party which has been credited with sus- taining prices for a long time past rather than in any news immediately affecting value or earning power of properties, the shares of which were dealt in. The Erie plan for funding the interest coupons of the bonds came as something of a shock, the advertised announcement in the morning papers carrying the first intimation that has been heard of the plan. The announce ment of the president of the company in the letter stating the form of the project that there will be a deficit be- low the amount necessary to meet fixed charges for the current fiscal year." did not make pleasant reading for the owners of the company's secur- ities after the rescue of the property by the purchase of the company's notes in appeal by E. H. Hartman. What particularly struck the speculative mind was the recollection that the mo- tive for the rescue of the Erie from receivership at that time, or the one attributed to the purchaser of the notes by public opinion was the purpose to foster the returning confidence of in vestors with the success of the Union Pacific bond Notation especially in view.
 The disclosure of the new patchwork for Erie financiers, with the announce ment of the closing of the subscriptions of Union Pacific bonds carried sug- gestion of sequence and arrangement by design that proved of sinister effect on the speculation Pressure of the ne ' Union Pacific bonds when issued in the outside market and their sale there and in the London market at 1 1s per cent below the subscription price intensi- fled this impression as did the unsup- ported position of Union Pacific stock in the market which was revealed at an early stage in the days transac- tions. The presumption was drawn that the market campaign for support of prices had been concluded with the completion of the Union Pacific bond Notation. scramble to get out oe speculative holdings resulted which proved costly to values.
 The stagnation of yesterdays mar ket was transformed into a degree of activity which ran up total of sales for the first hour of as much as Yes- terday's total transactions. Recent snppositions of unlimited buying orders at prices slightly below the existing level of the market which might serve to buttress the market against attack. proved unfounded and prices slid down ward easily and rapidly before selling comparatively light, except by contrast with the weeks dullness The Erie, were conspicuous in the decline, as was natural, and selling of those stocks for foreign account was notable tac- tor in the early break. The close as- sociation of Union Pacific in the spec ulative mind with the days develop ments was indicated by the large volume of transactions in that stock and it's prominent place in the de- cline. The list offered practically no exceptions to the days weakness.
 The position in the steel trade was the subject of continued discussion of reports of still further cutting of prices either prospective or already made against the contention of the central ized interests in the trade. The pros pect of further large augmentations of cash holdings of the banks shown by the estimates of the weeks currency movement to and from the year passed with little notice in view of the un- diminished ease of the money market. Some of the rumors of the day had some effect on the market, especially some hinting at embarrassment for newer local corporation enterprise.
 Bonds were weak. Total sales, par value, s2,2760O0. United States bonds were unchanged on call.