The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-01-11
BUMPED BY THE
GAS DECISION
Wall Street Spectators Get an
Object Lesson by Beoom-
ing Too Confident.
BIG DECLINE IN PRICES
SEVERAL CAUSES CONTRIBUTED
TO AN UNEASY FEELING.

New York, Jan. 10.-SpecGlatiVe op-
orators in the stock market had admin
istered 20 them last week an object les
son OF TOO confident assumption Of
events not vet definitely decided, and
the lesson resulted in some revision OF
opinion of prospects and in some mis-
givings over the extent TO which buy
ing of stock had carried prices. The
sharp readjustment 10 lower prices was
the consequence. the action being 50
abrupt and so headiong as TO leave
room for some upward reaction before
the week had closed. followed, how
ever by another collapse.
Consolidated Gas Decision.
The center of the disturbance was in
Consolidated Gas in which there had
been so excessive a speculation on as
sNirsnce that the S0-cent legal restric-
tion of the price of gas would be de-
claTed invalid that heavy realizing
movement might have been expected
10 follow d favorable outcome of tsts
litigation contesting the law. Instead
Of that the supreme court gave Us
sanction TO the law on Monday, and
the company found itself obligated 10
reduce its charge for gas from one
dollar TO eighty cents per thousand
feet and to refund some one million
dollars Of overcharge since the law was
enacted. The shares of the company.
which sold on Monday at l65<. plunged
10 a low quotation Of 122 and then rail-
lied The whole market was upset by
the sympathetic effect OF this break
and BY the liquidation of other stocks
through holdings of the gas stock from
sacrifice. Other important pending
cases for which o favorable outcome
have been similarly predicted have
been motives for extensive speculation
The suit to test the commodities clause
of the Hepburn law is notable exam
pie
Rumor Proved Untrue.
Disappointment Of speculative assump-
tion was read also in the election OF ".
=. Brown to the presidency Of the New
York Central and in the Lon-appearance
of L. II. Hartman in the directorate OF
that company. Another faNOrite line Tor
speculative inference for several months
had been the assumed evidence OF gov
eminent pursuit and public agitation
against corporations The Consoiicated
Gas decision Dy the supreme court was
one of several factors that combined 20
revive some apprehension on that ac-
count Another was the beginning Of oral
testimony in the government suit to an
aul the Hartman railroad merger
The continuance of testimony in the
standard Oil suit awakened the recoilec-
ton of the pr osecution Of that corpora
real to reopen the go fine for that
corporation was a temporary offset. but
the prompt action Of the attorney general
in seeking a retrial of the case in the low
er court nuiiified this offsetting influ-
ence.
The senste's demand for details for
permission accorded the United States
Steel corporation 10 purchase the Ten
nessee Coal & Iron company, and reports
that the secret agents of lh3 gOVernmer-
were again investigating meat packing in
dustries, helped to feed the unessiness-
Much Disappointment.
The period following the beginning Of
The new year HAD been looked forward 10
for long tins as one Of expectation Of
revival of widespread public demand fer
stocks. The amount of stocks bought to
anticipate this demand had been very
large and the selling TO realize was heavy
The break in prices forced large addi-
tional selling. The rapid easing of money
rates with the new year. which is prov
not have the expected effect IN melting
demand for stocks. In the new offering
# securities. however, the effect has been
ma rSed-
Tho rate OF the reflux of currency into
hank reserves Is so large that a smaller
demand for active business purposes J.
argued. The course OF the improVeme q.
ip business and in iuStrldl activity. ~
fact. is proving more gradual than vas
hoped for Leading iron and steel trade
authorities testify to the slow demand for
Gun ulation Of idle freight cars also gives
disappointing evidence of the checks To
the movement OF general merchandise
freight.