The Washington herald., 1909-01-12
ERIE IN A DECLINE
Disturbing Influence in the
Market Situation.
SOME STOCKS SHOW STRENGTH
Smelling, Rock Island, wisconsin
Central, and Steel Hold Up Well.
Further RumOrs of Poor Health of
Z. Il. Hartman Add to UnfayOra-
bic Impression Made by Erie.

New York, Jan u-Just as early last
week the market was unsettled by q
sensational drop in Consolidated Gas
stock and later on by q heavy fan in
the gh-Metropolitan and some
OF tie local traction shares. so. to
cay a disturbing influence arose in the
shape Of a decline in the various Erie
issues.
The extraordinary fall in Consolidated
Gas stock WIS admittedly due to reasons
quite detached from those affecting the
market for securities as a whole. The
recent advance IN the traction stocks was
without any known cause except the
prospect for a gradual unlocking Of the
tangle IN which these interests were in
volved, and the recession IN the stocks
likewise was concealed in mystery and
probably had no other origin than ordin-
ary liquidation or partial liquidation by
the pool that has long been operating in
the shares.
The fall in the Erie issues to-day was
Ostensibly brought about by the renewes
circulation Of rumors. that were first
heard week ago. that the State public
service commission in the Second dis
trict was regarding with an unfa v0ra bic
eye the Erie's application for authority
70 issue certain amount Of collateral
trust bonds. and these stories to-day
were coupled with further r1mors re-
garding the poor condition Of the health
or 2. H. Hartman It may be said
that the stories last named were un-
ouaiihedly false, and that those first re-
ferred 70 were untrue in almost equal
degree
Ask for Information.
No objection has been made BY the
public service commission 10 the Erie-s
bond Issue. although it is not impos-
Eiole that the commission may have ask
ed for more information regarding the
purposes Of the issue than was contained
n the original application made TO them.
and it was the consensus Of opinion in
banking circles to-day that there was
every probability that the application
would be granted, inasmuch as Il Is
based on Just and equitable grounds. and
represents the most feasible means that
can be at present devised for putting the
Erie Company in the possession Of need
ed funds.
Naturally enough. however, the weak
ness OF q standard stock ike the Erie in
addition To the fall in two other prouli-
nent quarters Of the market in days i'm
mediately preceding, excited the suspi-
cions OF the rank and file Of speculative
buyers and led prospective purchasers OF
this sort 10 withdraw from the market
TO a considerable extent
Displays stubborn Strength.
Yet the most noteworthy thing concern
ing to-day's market was that taken as
whole It displayed stubborn strength
&c the pressure that was brought 70 bear
against Il, and that considering the vol
ume Of transactions the declines produced
were exceedingly small. Support 10 the
market was IN other words much more
general and effective than il was last
Saturday, and the DAYS results were such
as % again leave It not open to doubt
that process of accumulation was going
on in certain stocks, whatever may be the
causes leading 10 a decline IN others.
Stocks in which particular strength
was displayed to-day were the American
Smelling and Refining, Rock Island CON-
mon and preferred Missouri. Kansas and
Texas common. Wisconsin Central com
mon and preferred. Brooklyn Rapid Tran
SIT and United States Steel common
shares, and indeed the one general obser-
walton that could be made after the close
OF business was that a large short inter
est in the market had been created with
the result OF securing only an insignificant
decline in the most important issues.
The fair presumption is that speculative
pressure 70 sell the stocks has PLAYED a
great part in the developments Of the last
few days, and whether or not from the
recovering purchases by buyers OF this
description the Consolidated Gas and In
tereorough-AIetropoIit stocks which
were so weak z short time since were To-
day exceptionally strong
The only news Of the day was that
comprised in the broad Indications Of an
expanding market for bonds and securi-
ties proper, coupled with such advancing
tendencies in sterling exchange as nav
cause a resumption Of gold exports on z
considerable scale before the end OF the
month, unless money rates here become
much frmer than they now are.