The Washington herald., 1909-08-30

New York. Aug. 2s.-It was pointed out
two weeks ago. and reiterated and en-
phasized last week. that elements Of dan
ger in the stock market-elements which
should inculcate caution In speculative
purchases-lny In the condition of Mr.
Harriman's health and the many evil
dences that stocks in ample quantities
had been sold by men OF wealth who
were carrying them In the banks 10 men
OF lesser wealth who carried them through
brokers. There has been a sharp decline
since then; large number OF the weak
accounts have been eliminated and a very
extensive short interest has been created.
In these respects the speculative struc-
ture OF the market has undoubtedly been
improved. and at the close of the week
the market. though by no means normal,
was not at all as excited and tremulous
as on previous days.
Developments OF the week emphasized
the extent OF the distribution Of stocks,
in the course OF which stocks In large
quantities passed from strong into weak
hands. The time money market, IN which
the demands for loans on stock exchange
collateral was very keen prior TO this
month, became duh or even stagnent.
and the impression was naturally Gre
ated by this circumstance that many OF
the men who bought large blocks OF
stocks for a long pull early in the
year and carried them IN the banks on
time loans had taken advantage OF the
high prices and the intense public inter-
est IN the first two weeks OF this month
and had cashed the handsome paper
profits obtainable by them.
Evidences Are Supplied.
Evidences to the same purport were
supplied, as was the case the week be-
fore. by large expansion OF the loan ae-
counts Of the banks as shown in the
combined bank statements and by a
stlffeaing in the call money market. al
the same time that the market for time
money on stock exchange collateral was
becoming weaker.
Undoubtedly Il was In the Hartman
stocks. Union Pacific and Southern Pa
cific. that the prOnt-taldng was most ex-
tenslye, and, particularly In Union Pa
ciic, large sums were taken out Of the
market and large blocks Of stocks shifted
10y experienced operators IN a speculation
that seems the more unsavory the more
II is considered. IN the course OF this
speculation Union Pacific was advanced
just two weeks ago up TO 2l9 in a market
wildly excited and enthusiastic over re-
ports that the management had decided
10 put in operation the long-debated plan
Tor segregation Of the companys invest
ment stocks
there was then no official confirmation
OF the reports. but while they were known
70 all the men principally interested in
the company and while their market ef-
feet was probably better appreciated By
these men than by any others, neither
was there an official denial All the Off
GERS and directors and their associates
sat quiet while the public, constituting 81
lence as acquiescence. was buying Union
Pacific heavily IN entire reliance upon the
reports. Not until Mr.. Harrimans re-
turn last week were the reports denied.
and By that time there had been abundant
opportunity for the men engineering the
movement, whether members Of the Har-
riman party or not. to take down enor-
nous profits at tho expense oil a credu-
lous speculating public.
IL was natural that as discussion OF
this transaction continued and as dis
gust with II became deeper and deeper.
there should be heavy liquidation by con-
servative holders OF stocks, that there
should be extensive short selling. and
that there should be much forced liuui-
cation by the great number Of specula-
tors who had purchased the stock on thin
margins. in the market for the stock an
important factor was also the condition
OF Mr.. Harrimans health. From the time
OF his return on Tuesday until the close
Of the market Saturday noon. Wall street
teemed with alarming reports regarding
his condition. and. though these were no
doubt exaggerated, and though they were
vigorously denied by several OF Mr.. Har-
riman's associates. they were obviously
Of great market effect
stocks Erratic Action.
Other stocks on the list were naturally
affected by the erratic action Of the Har-
riman stocks, but as the week progressed
there was an increasing tendency to con-
slider these others apart from those in
which Mr. Hartman Is In control. On
the last market session OF the week this
tendency was particularly noticeable In
the action OF Steel common. which held
strong while Union Pacific broke five
points. The strength OF this stock was
moreover. the most encourag aging feature
Of the market throughout the week.
While Union Pacific sold down IN 2A1k
points below its price only two weeks ago.
Steel common at no time sold below its
high record price Of 7S7s, and at the close
Of the week was but SlS points below this
figure The action OF this and some other
standard investment and speculative
stocks served 10 steady the market in
the closing session OF the week. 1t ap-
peared then that the more important of