Omaha daily bee., 1909-02-24
NEW YORK STOCKS and BONDS
Suspicion and DistruSt Of Speculative
Position Spreads Rapidly.
VALUES DROP WITH A CRASH
UnIted states steel Leads the Decline
ana IndustrIaIs and Rail-
road Issues FOIIow-BOnds
Are weak.

" YORK, Feb. 3.-Susplclou and dis
trust Of the speculative market spread with
rapid growth today and brought the fabil c
OF values down with a crash. The con-
viction Vas quick In coming after the
throwing open OF the steel market to
competition last week that the stock mar
ket position was an artificial one and had
bsen brought about by false assumptions
OF the trade position. This was not wholly
a new view OF the market, but the success
which the aggressive support OF values had
met had built up a confidence that the
position would be held by the main
strength OF the powerful capitalists sup
posed to be back OF the movement. To-day
saw the quick abandonment OF so much
OF that confidence as was left after the
weekend demonstration OF weakness last
week.
Various factors combined to aooentuate
the weakness today and 1t gained cumula-
tive force. The serious view taken by the
shown by the heavy declines effected
there yesterday during the New York
holiday paved the way for a renewal OF
the downward course. The foreign mar
fears OF an outbreak In tho Balkans due TO
ServiRs attitude towards Austria. London
sent heavy orders to the New York market
as soon as trading began and this helped
the downward rush of prices, which began
after the opening. There was considerable
accumulation Of orders from domestic
sources also, some OF them for liquidation
on account OF trade outlook. others forced
by failure to make good margins which had
been exhausted by last weeks fall in
prices. The weak early market, which re-
suited from these conditions was no more
than had been expected and the alert pro-
t%esslonal element amongst the traders
stood ready to take advantage of the de-
cline to take stocks. came to cover short
contracts put out last week and some for
an upward reaction in view of the con-
siderable extent TO which the decline had
run. This buying steadled the market
momentarily, but II proved n technically
weakening factor when the decline was re-
/ nANrA nh1 NhAaA
for liquidation along with the continued
outside selling. A new set OF weakening
factors came In the differences drawn from
the reconvening OF the supreme court at
Washington. Decisions were handed down
against the New York Central for Relating
ana the speculative element for reasons
which a lawyer might not follow, Jumped
20 the conclusion that a later decision
would uphold the conStitutionality OF the
commodities clause of the Hepburn law and
so oonstrain the anthracite railroads to
get rid OF their mining properties.
Another weak group OF stocks was found
In the mining railroads which nave been
exploited for rapid advances on assump-
lions OF mergers or benefits to accrue from
their purchase by larger systems. OF the
steel trade position the speculative contln.
gent was disposed to take the gloomiest
the unbounded confidence previously held
OF the ability of the centralized forces In
the trade to maintain che position until de.
mand revived.
Today's discussion in the ~nelghborhood
OF the Stock exchange all nad to do will
the likelihood OF railroad cuts in the stee
schedules OF duties In the new tariff bills
the fear that trade revival would halt unit
these tariff rates were decided, the neces,
sity that would follow for a reduction o.
wages and the danger that would ther
arise or strikes and disorders. The actua
news from the steel trade was vague, tn,
rumors were confusing and unreliable and
the unsettling effect in CONSEQUENCE wal
great, but the expression of these senti
ments invariably issued in the selling o.
stocks, the result was simplified into un
deviating liquidation. There was only 4
slight check when the room shorts tool
the days profits. but the last break OF tn,
day was the most demoralized seer
throughout and closed prices at the lowest
Another reduction In the price of copper
and the beginning OF the new trial Of the
Standard OH fine case were contributor
factors to the gloom. Reading sold as Low
as IFS, a loss for the day OF l0h points
United states Steel sold down to 4lii ant
closed at the lowest, a loss In price sine
Saturday of ~ points. The railroad list
as a whole, showed some early resistance
to the GENERALIZATION of the industrials
but the liquidation spread throughout tn,
market and prices at the end OF the da,
were off from 5 to over 6 points Tor al
the active stocks.
Bonds were weak. Total sales, par value
s.. 290.0oO. United states IS coupon, advanced
y per cent on call.
Number OF sales and leading quotations
on stocks NarNs