Evening star., 1909-08-29
j. P. STOCK TUMBLES
Various Hartman Rum0rS
Drive Down Prices.
BETTER FEELING AT CLOSE
Strength of Steel Buoys Up the
Market.
LIQUIDATION IS VERY HEAVY
In Two Weeks the Loan Expansion
Has Amounted to
s14,ooo,ooo.
LIQUIDATION IS VERY HEAVY
: Spccial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. August 2S.-At the open
ing OF the market today Union Pacific.
New York Central and Southern Pacific
sold at prices we'll below yesterdays s
closing Most of the traders seemed TO
be alarmed over the reports in many of
the morning papers regarding Mr. Har-
rIman's health. and heavy selling orders
from London indicated that there' too'
the condition of his health had not been
entirely discounted in the stock market.
The selling of Union Pacific continued
until the stock was more than i've points
below yesterdays close. Trading was
very active. but it was noticeable that
not so many big blocks came out as on
previous days. A far greater proportion
of the sales was in lots of one hundred
10 FIVE hundred shares, circumstance
that may indicate the forced liquidation
of weakly margined accounts held In
brokerage offices and show cessation
of the more important liquidation, that
of large holdings by men of wealth.
Hartman Rumors Denied.
In the middle of the session a vigorous
denial was given to reports that Mr..
Hartman was about to undergo an oper-
ation and in the last hour better feel
ing in regard to the Hartman stocks
seemed to prevail, although, of course,
the gain in the last hour was due in part
to the expected and customary covering
of short contracts at the end OF the
week S business.
The Hartman stocks excepted, the
market acted better after the early trad
ing than at any previous time since the
break began. The strength of the Steel
shares was particularly impressive ana
served greatly to steady the market as
whole. and impaired stability to other
industrial stocks and to the stocks OF
railroads with which Mr.. Hartman Is
not connected.
The bank statement indicated, as did
the bank statement last week, very
heavy liquidation Of stocks by men OF
wealth, who purchased them in the
spring and early summer at prices well
below those prevailing even after as
violent a break in stocks as has been
seen this week, and who financed those
purchases to a considerable extent with
time money. The clearing house banks
in the average statement reported an
increase of s1,400.000 in loans, and the
state banks and trust companies snow
ed an increase of more than $S,OU0,o0o
AS has been pointed out previously,
a contraction of loans is ordinarily ex-
pscted after a period of liquidation in
sthe stock market. But the circum-
stances recently have been different
for the reason InaL tllS puICHdSSS VI
many large holders of securities were
made so far below current prices for
stocks that not SO much could be bor-
rowed by those who have purchased
these same stocks in the past two
weeks.
Big Loan Expansion.
There has, of course, been in the past
week much liquidation Of stocks bought
at higher prices, but this circumstance
emphasizes the magnitude of the real
izing sales by the holders of big blocks.
Last week such sales were heavy
enough TO Offset this other liquidation
and produce a loan expansion of $6.-
600 900, so that in the two weeks there
has been a loan expansion of more
than s14,ooO,o00, which can only be
explained on this theory of distribution
by important holders. Evidences to the
same effect are found in the recent de-
crease in time money rates for loans
secured by stock exchange collateral
and the stiffening of the call money
market. both indicating that stocks for
merly held by purchasers who financed
their holdings with time loans In the
banks are now carried IN the loans of
brokers on call money.