New-York tribune., 1909-01-05
FINANCIAL AFFAIRS
STOCK PRICES SLUMP.
Heo1u Declines Following Consot-
idated Gas Decision Money
Rates Easy.

Stock market values were strong At lile oPelI-
ing, with notable advances in many OF the leaa-
inc issues and in some of the specialties, while
in subsequent morning operations gains were
fairly we'll maintained in spite of heavy reauzlilS
sales New York Central and Pennsy wanna III
z,-l,a1 amounted 10 race for leadership. supply
ing the chief feature of the dealings. PennsNI-
1ania won out in point of gain, but with the rest
of the general list. lost its Improvement f"Ao"-
ing the announcement of the United states gu
preme Courts decision against the Consohdated
Gas Company in the 80-cent gas htlgauor. Foi
many weeks Wall Street had been confident tIlat
the court would decide in favor Of the company
The tip was common in the financial community
that the S0-cent gas law would not be uPheio,
the character of the operations in Consonuat9o
Gas stock serving TO impress the greater mum
her Of traders with the belief that some one in
authority knew that the gas company would WIN
its contention that the New York Legislature
exceaded its constitutional power in attempting
70 regulate the price at which the New ork gas
companies should dispose Of their product TINS
idea was so firmly held that the Street was
rudely shocked as a consequence of the decision
disnlissing the injunction preventing the en-
forcement of the law. and il promptly began 10
sell the gas shares, which brought out large
amount Of marginal holdings in these issues and
other parts of the list Consolidated Gas
dropped more than IS points from the closing
Saturday, while losses of from TO points were
recorded by the leading speculative favorites
New York Central selling down points from IT'S
Pacific. SIS: Southern Pacific. 25s: Reading.
AZ: St Paul. 312: Missouri Pacific, Sk Brook
lyn Rapid Transit, AZ, and Amalgamated Cop
per. 2Ss.
Following the violent break there was a
natural rebound. in which a large part of the
loss was recovered in a majority Of shares. with
complete recovery In Missouri Pacific. Pennsyl-
vania the Colorado & Southern issues. Chicago
& Alton. International Pump preferred and
Mexican Central, which closed at net gains. The
general market, however. showed further signs
of weakness in the late trading. final operations
in most parts of the list showing an unsettled
and feverish market. with net declines OF from
70 ? points and an exceptional decline or 70 IN
Consolidated Gas. Opinion in the street was
much confused the gas decision. which
while completely against the company on the
early reports. subsequently appeared TO offer a
further chance tn the concern TO test the riSht
of the state to compel il TO make a charge Of 80
cents and as consequence the speculative con
tjngent on the stock Exchange and in brokers
Offices was not inclined at the close TO make eN-
tensive commitments either side of the ac-
count In the higher circles Of hnance more
attention was paid to the Supreme courts de-
cison refusing the governments petition Tor a
reaearing I'm the STANDARD OIL fine case than 10
The Gas matter and IT was thought that event
,,aIIv the stock market would reiesate the gas
decision tn its proper place as a local matter
end realize the broader significance OF the
STANDARD OfI's victory a permanent influence
on the course of prices TOTAL deallss ran W.
vond l 500 600 shares.
The Bank of France secured all the south
African gold offered Yesterday in the London
omen market amounting 10 100000. Bar gold
was advanced at the British capital ana tor-
eien exchange az this centre was easy. with no
indication of gold shipments from here in the
Immediate future. though II was thought IN
banking circles that with the return of large
amounts of currency to New York later an the
month a resumption of exports Of the metal to
paris would he reported Last weeks statement
OF the associated banks showed a Dig discrep-
ancv between actual conditions and average
figures. but neither statement suggested the de-
veIopmcnt of high rates for funds IN the early
mari of the new year. The chances are that, in
line with precedent. bank holdings will Increase
in January. and il is the expectation of period
of easy quotations for money that is exercising
such hopeful influence in the speculative com
munity regarding the course of securities
values Bulls refuse to admit that stocks are
selling at an exaggerated level They believe
that the great financial interests Of the country
viii continue To work for higher range Of
prices in order TO make attractive market
for the offering Of new securities. of which there