The Washington herald., 1909-02-17
STOCK PRICES REACT
Slight Losses Follow Preced-
ing Sharp Advance.
INEVITABLE PROFIT-TAKING
Status of Erie Railroads Recent SSo,-
100000 Bond Issue Causes Doubt
which Helps Along the Recession.
London Sells Stocks on Balance for
the First Time in a Fortnight.

New York, Feb. l6.-It was regarded
as a. almost foregone conclusion IN Wall
street to-day that following the relative
II rapid rise in the market in the last
three business days. eliminating in yes
terday's sharp advance. security prices
would to-day suffer more or less OF a
reaction.
These expectations were in the main
not disappointed. although the extent Of
the reaction was by no means as great
as many speculatcvs had imagined i
might be. The course OF values reflected
no more than the ordinary profit-takjng
almost inevitable after the upward move
ment OF the recent past. and the i'm
preston left on Observers after the close
OF the DAY was that the market had
given another demonstration OF its in
nerent unwillingness 10 decline. Moderate
reacuonary tendencies were at the out
set exhibited IN the London market to
DAY, owing 10 the operation OF the same
general forces as those shown here. and
London houses were sellers OF stocks on
balance for the first time in the last
fortnight
Steel Reduction Reported.
Causes helping along the recession.
which vas. OF course. wholly professional
IN character, however, considered, We're
a rather general feeling Of uncertainty
regarding the status OF the Erie Rail
roads s5o000.0oo bond issue plan. as left
by the conditions imposed BY the public
service commission, and also rumors
which we're put out yesterday in positive
form of heavy reductions IN prices BY
some OF the large independent steel pro
ducing companies.
As the management OF the Erie Rail
road Company has thirty days in which
20 make Up its mind whether Il viii or
viii not accept the terms Of the bond
issue laid down by the State authorities,
discussion upon the subject is at the
moment somewhat premature Many peo-
pie hold the opinion that the terms OF the
issue may not be in themselves and in the
main acceptable TO the Erie Railroad
but that doubt regarding the upshot Of
The affairs centers largely upon the cues
ton whether as large a proportion as %
Per cent OF the Erie bondhol6ers. the
number required by the Public Service
Commission. VIII assent 70 the plan So
far rs these bOndhOlders are concerned
they have until August 10 think the mat
ter over and decide. There is little doubt
that the greater number OF them, how
ever, viii conclude that 1t IS for their
best interest 10 accept the proposition
made By the directors OF the company.
OF Speculative Origin.
II the Public Service Commission could
see their way clear to modify this par
JiculaT requirement the difnculty would
admittedly be over The stories OF price
cutting on steel products which have at
tained widespread circulation IN Wall
street IN the last two business days are
believed 70 be for the most part false,
and 10 have q speculative origin.
The best Information obtained, both
privately and officially. from list prices
have been made. although II IS reported
that these prices have been shaded in
certain instances by some or the smaller
sJeel-makinE companies
The volume Of business obtained through
these reductions has, on the other hand
been OF small magnitude, and i IS obvi-
Gus that the existing trouble is duuneSs.
due 10 Inherent causes. which, IN the
present state of hesitation, due % the
tariff discussion and the operation OF
other wsll-kn0wn forces. would not be
altered IN any material degree by a re-
duction IN prices Rather is il altOgethe-
probable that cuts in steel prices now
would only increase whatever lethargy
the trade IS exuerfe0cins