New-York tribune., 1909-01-06
FINANCIAL AFFAIRS
STOCK PRICES DOHN.
Gas DO1Cn 81 Points
from Saturday-Money
Rates Easy.

After moderate strength in the morning the
stock market sold off under the influence OF
liquidation and professional pressure closinS
weak at the lowest prices of the day with net
losses from to points in the active list. Con-
solidated Gas being a heavier sufferer at net
decline of Is points, The issue was weak
throughout the steady selling finally affecting
the entire list. which showed some demoraliza-
ton among the securities which were heavily
held in commission houses on margin account.
In the afternoon Consolidated Gas showed
loss of 35 points from the closing Saturday,
and its decline naturally compelled selling in
various parts Of the list by operators who had
lost substantial sums in the gas shares in Mon
days and yesterdays markets. In view OF the
heartbreaking punishment administered 70 spec
ulators in Consolidated. il considered re
HE that the general market did not reg
lister greater declines. and the fact that it did
not go To pieces was credited entirely 70 the
financial strength of the people interested IN
the current speculation and to the large amount
of stock that is held by interests who are big
enough TO weather market storms In the rail
road list the Hartman shares. st. Paul Chi
cago &, Alton, Great Northern, Reading. and
Northern Pacific the weakest features,
while PENNSYLVANIA and New York Central We're
relatively firm in the face of general hquida-
ton Colorado & Southern first and second pre-
ferred. InterborOugh- Metropolitan stocks, Third
Avenue and Wabash securities closed at net
gains: also American Smelling. In the early
dealings il looked though the market would
break loose from Consolidated Gas, but expec-
tations based initial movements were rudely
shocked in the afternoon, thus proving again
that the general market cannot recover in a
short time from the effect of a development that
shakes the nerve centres of speculation
The Consolidated Gas Company maintains
that ii cannot sell its product at 50 cents and
make d profitable return to the owners of its
stocks but there many people in Wall
Street well informed on gas affairs who say
that gas can be manufactured and sold IN this
city at a profit that will warrant per cent or
more on the companys shares It is a note
worthy fact that in Brooklyn gas has been on
the SC-cent basis ever since the S0-cent gas law
went into effect. and to-day the Brooklyn Union
Gas Company is paying at the annual rate Of
per cent to its security holders. the stock be
ing quoted in the neighborhood of 40. In the
slump OF the last two days not a single share
of the Brooklyn Union Gas Company's stock
changed hands The chief reason for the heavy
break in Consolidated Gas yesterday and the
dav before was found in the large accumulation
of the stock in commission houses on margins
and the logical fright on the part Of the GUS
toners upon the development of active press
ure from the professional element large
amount of stock sold out on the depletion
Of margins. and many accounts showed heavy
debit balance Few operators on margin were
ready or willing to provide additional funds
against their trades, and no course but
sale was left the broker. Some people blame
the brokers for selling them out, but the brok-
ers were merely acting for their own protection,
stocks on margin for customers. The Consoll-
dated Gas Company will not go out of business,
and if il can show that it cannot actually make
a fair return on its operation with gas at 50
cents il will have the opportunity for a retrial
of IT'S case There other stocks that are
better investments than Consolidated Gas. but
this is not a good reason for the investment
owner Of the gas shares to sacrifice his hold
ings.
Local banks have gaiped so far In the current
week upward Of $3J00000 their operations
with the Sub-Treasury. and fair amounts on the
interior currency movement. In the course of
the next few weeks receipts OF money from out
of town will be heavy and the outlook there
fcre favors easy rates for loan accommodation,
even though there should be a call from the
federal Treasury for government funds a
Panama bond Offering. The demand for time
money is light. and The commercial paper mar
ket has not yet begun 70 reflect any important
increase IN mercantile transactioks though It
is thought there wil be q gradual revival in
this department of the money market in the
near future. Foreign exchange was weak AZ
the opcning yesterday. but strengthened before
tie close on the appearance of better inquiry
for remittance Rates the gold export
,evel without any indication of heavy ship
lnents at aresent IL there were larger sup
ply OK sold bars at the Assay once some Of the