Los Angeles herald., 1908-09-17
NEW YORK STOCK
AND BOND MARKET

NEW YORK, Sept. 1s.-Ali that e. II. Har-
riman had to impart concerning the properties
In which he is interested fell far short OF
hat the speculative imagination had been led
to expect during weeks OF buying OF the stocks
at steadily advancing prices. 1t was a disap-
pointment on this that caused the
crumbling of prices today more than any other
factor. Mr.. Harriman's terse reason for the
great strength In the stocks of his railroads
was because they were too weak before ana
the weakness today might be explained with
equal Justice as due to the stocks having pe-
r~--- - strong. The realization that there
was to be no Union Pacific holding company
and distribution Of treasury assets no I'M
mediate valuable rights on Southern fhciic
in connection with new financing. no extra as
bursement, no Northern Pacific, ana In iact
nc actuality on which to base numerous otner
runors which have kept alive speculative en-
thuaiasm for some time past. left holders OF
stocks with the dread that they nad peeh
pursuing phantoms and overdonig the specu-
lation. The action of the market gave warn
ing also that measures Of control and sup
port for prices were not to be enforced with
the same determination as lately Tne vlgor-
Gus action as shown to the seilins pressure su,,e
sions which arise on the part OF purchasers
OF stocks for an advance. The convection tnus
fostered that a powerful combination OK capi-
taistB, equipped with hundreds OF millions or
dollars. had set themselves to hold and ad-
vance prices was shaken by the evidence OF
distribution OF holdings whenever the market
was strong enough to absorb them Reading
served as the instrument for support of the
market as was the yesterday. The stock
was about the only one to show positive
strength at any time New York Central ad-
vanced point temporarily when 1t became
known that the regular dividend had been de-
ciared. The relief from fears OF a reduction
n that dividend did not avail TO reassiire mis-
g.vings over dividend maintenance at other
points. The continued shrinkage in railroad
earnings, coupled with the heavy additions to
share capital which to divide claims 70
earnings here after making transcontinenttal
lines vulnerable to this proposition. The two
Hill stocks. and the Canadian Pacific were
fer substantial speculative lines OF stocks
which considered certain from the action
ot the market. The motives prompting the
liquidation were not commonly agreed
rpen Political scare was one motive ad-
yanced by some of the most demonstratve
Of the sellers. The course OF the market was
not an entire surprise 10 observers less closely
concerned In the speculation The extent of
the rise In itself has suggested the approach
OF a reaction. The moderate pace of the busi-
EesB Improvement had indicated the over
diFcounting of this in the securities market
The reliance placed on the plethoric money
market TO continue the movement loses part
OF the basis with the normal period OF depie-
tion OF central reserves arriving, even though
the rate Of depletion is unusually beated and
slow this year. The effort at liquidation
nnds little absorptive demand to meet II as
has been at no time great. The selling pres
sure continued to the close. which was weak
at the lowest prices. Bonds were heavy
Total sales, par value. SO. 236. 900. Government
Is coupon declined y per cent In the bid
rrice