The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-01-11
F | NAN c |AL
R { y | { v
OF WEEK
ReadjuStment of Prices Re-
suit of Over Confidence
of Spectators

New York. Jan. 10.-Speculatlve OBJ
orators In the stock market had nd.
ministered TO them last week an OBJ
Ject lesson OF too confident assump-
uon oil events not yet definitely de-
clded' and the lesson resulted in
some reversion OF opinion of pros.
poets and in some instances TO the
extent of buying stock had carried
prices. The sharp readjustment TO
lower prices was the consequence. the
action being so abrupt and so head
long as to leave room for some up
ward reaction before the week had
closed. followed, however, by another
relapse. The center OF the disturb
ance was In Consolidated Cos, IN
which there had been so excessive q
speculation on assurance that the CD
cent legal restriction OF the price OF
gas would be declared invalid that a
heavy realizing movement might have
ben expected to follow a favorable
outcome OF litigation contesting the
law. Instead of that. the supreme
court gave its sanction to the law on
Monday. and the company found It.
self obliged to reduce Its charges for
gas from one dollar to eighty cents
per thousand feet, and TO refund some
S9,000,000 OF overcnarge since the
law was enacted. The shares OF the
company, which sold on Monday at
165 IA, plunged TO low quotation of
1873 1-2. and there remained The
whole market was upset by the SYM
pathetic effect of this break and by
the liquidation OF other stocks through
holdings of the gas stock from sacri
fee. Other important pending cases
for which a favorable outcome have
been predicted have been motives for
extensive speculation. The suit to
test the comodities clause of the Hep
burn law is a notable example.
Disappointment OF speculative as
sumption was read also in the cleo
tion of w. c. Brown to the presl-
dency of the New York Central, and
in the non-appearance OF E. H. Harri-
man in the directorate Of tnat COM
pany. Another favorite line for spec
ulative inference for several months
had been the assumed evidence Of
government pursuit and public agita-
tion against corporations. The Con-
solidated Gas decision by the supreme
court was one of several factors that
combined to revive some apprehen-
sion on that account Another was
the beginning Of oral testimony IN
the government suit TO annul the
Hartman railroad merger.
The continuance Of testimony in the
Standard Oil suit awakened the rec
objection of the prosecution of that
corporation The denial of the gov
ernment's appeal to reopen the
twenty nine million dollar fine for
that corporation was temporary or
set, but the prompt action OF the at
torney general in seeking a re-trial Of
the case In the lower court nullifed
thi soffsetting influence.
The senate's demands for details
for permission accorded the United
States steel corporation to purchase
tae Tennessee Coal and Iron COM
pany and reports that the secret
agents of the government were again
investigating meat packing indus
tries, helped to feed the uneasiness-
The period following the beginning
Of the new year had been looked for
ward to for long time as one of ex-
pectatIon of revival or widespread
puDnc demand lot SlOChS uo
amount of stocks bought to antici-
pate this demand had been very large
and the selling to realize was heavy.
The break in prices forced large ad-
ditional selling. the rapid casing OF
money rates with the new year, which
Is proving even greater than was ex-
pected did not have the expected ef-
feet in melting demand for stocks.
In the new Offering OF securities, how
ever the effect has been marked.
The rate of refluN currency to bank
reserves is so long that a smaller de-
mand for active business purposes is
argued. The course OF the improve
ment in buiness and industrial ac.
tivity. in fact, is probably more grad
ual than was hoped for. Leading
steel trade authorities testify to the
slow demand for finished lines OF
steel. The renewed accumulation OF
idle freight cars also gives disappoint-
ing evidence of the check to the
movement of general merchandise
freight.