The Birmingham age-herald., 1908-02-20
STOCK MARKET Is
 DRAGGING ALONG Trading For the Day Is Mainly
 In Bear Interests SHARP RALLY NEAR CLOSE
Adverse Reports on Condition of Rail- roads and Corporations Affect the Market, But Thls Is Partially
 Overcome In the EHd

New York, February f9.-The feature of the financial situation which was brought into notice by the action of todays stock market was the position of corporations especially the railroads with important maturing obligations to meet, while the falling off in their earning power has eh- croached so far on the margin of surplus available for distribution as to seriously impair the market standing of the securi- ties. The Gould group was acutey af- fected by these considerations today and securities of other companies whose po sition is believed to be analogous showed the greatest sympathy
 The degree of resistance shown by the general market to the demoralized break in the Goulds was worthy of remark. In the early stages the contrary movement In Missouri Pacific was ignored, and prices elsewhere made some headway up- ward and there was a final rally to the best. The rise was halted and a general reaction ensued but from moderated compared with the fall in the stocks most affected. The slumping tendency extend ed to some points in the bond market as well, where the same general causes were at work Railroad companies very gener- ally were forced last year Into temporary expedients for financing their require- lnents, and the rush of business at that time, and the high cost Of operation and of all kinds of equipment, added ma terially to the urgency of these needs. It was assumed at an early stage of the banking crisis last fall that in the re- l., piling up of cash in banking reserves as would lead to abundant money and so assist in the funding of the notes re- ferred to as they might mature. But the event is proving that the falling off in business which released money from ac- tive circulation for return to bank re- serves must be reckoned with also on the side of diminished earning power with wl.ich to meet charges on boI rowing.
 The steps now being taken towards re- trenchment and economies of the rail- reads to meet the falling off in business offer one Of the leading subjects of at tention in the financial world. Today there were reports of concerted action amongst western railroad companies look ing towards a reduction in Wages on their systems. Fears of the strike troubles that may follow are an appreciable in- fuenee in the undertone of depression in the securities market. Retrenchment and economy, however, cannot escape the ob- legation for expenditures already made, and the burden of such obligations was the point of emphasis in the lesson in- culcated by the days dongs in stocks. A belief prevailed that an aggravating cause of the extreme depression shown by some stocks was the forced selling of them in the liquidation of loans in which they figured as collateral and which are now maturing. Recurring liquidation of this kind has been in evidence from time to time ever since the emergency terms which were forced on needy borrowers last fall. Fears of such liquidation re- maining to be completed are damper on the demand for stocks.
 Reports of an intended receivership for the Missouri Pacific, which were stimu- lated by the action of the stock were de- ned by the head of the system. The