Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-02
NO HURT TO STREET
Bond House Failure Without
Serious Effect.
HARM MAY COME LATER
Impossible to Tell How Interior
Banks Fared.
BAD FAILURES IN JANUARY
Total Liabilities Reach Unusually
Large Sum-Foreign Stock
Markets Depressed.
BAD FAILURES IN JANUARY

Special Dispatch 10 The star
NEW YORK, February 2.-Stocks were
not obviously affected today by the large
banking house failure announced long
after the close of business yesterday. In
a way, this failure was detached from
the stock market. 1t was of different
sort entirely from the Wall street suspen-
sions which attracted SO much attention
last month and was sufficiently distress
ing in its aspects to be depressing to
sentiment.
The house in question seems to have be-
come embarrassed chiefly as a result OF
its energetic efforts to contribute to the
exploitation of the country's economic re-
sources and through an overcontident re-
lance on the strength of what Is often
called the legitimate investment demand.
1t may be that later on, as result OF the
SUSPENDED firms engagement with interior
banks. other consequences may appear,
but today's stock market indicated none,
nor did il disclose that the failure was to
any extent symptomatic.
In relation to this subject it is per-
hapS worth while noting the exhibit of
commercial embarraSsments in January
made by one of the leading commercial
agencies. According to its figures total
liabilities involved in last months fail
ureS were more than twice the total liza
bilitieS of the failures of January last
year. and 20 per cent greater than the
liabilities in January. 1908. More than
the aggregate for December, 1907, larger
than the liabilities for any month since
1904.
Showing Is Surprising.
In view of the prevalent belief in the
soundness of underlying conditions this
showing is somewhat surprising. 1t may
be attributable to special causes. 1t may
also indicate that the great Wall street
speculative movement of 1909 was not
unaccompanied by speculative movement
elsewhere.
Foreign stock markets were more or
less depressed today by the evidence of
strained relations between Turkey and
Greece, as we'll as by the after considera-
tions based upon the French flood dam
ages. Perhaps these facts were account
able for foreign selling in our market. but
with all events there were such sales In
the early dealings to a substantial total
The news of marketwise bearing was
in other respects of Il rather mixed sort.
Railroad returns included satisfactory re-
ports for December by the Louisville and
Nashville, Chesapeake and Ohio, and
Norfolk and Western.
The ST. Louis and San Francisco re-
ported for all lines gain in gross and
such decrease in net as was in keeping
with the exhibit of other railroads in
the western territory. An initial divi-
dend was declared on Cincinnati North
ern. most of which stock is owned by
the Big Four. The American Tobacco
Company directors declared dividends
on the common stock at rates UNI
changed from the last previous distri
button, a circumstance which the Wall
street community vainly endeavored to
set In its proper relation to the gov
eminent lawsuit against the company.
Able to Resist Stock.
Some testimony as TO the extent to
which the stock market had been made
less vulnerable as the result of a January
liquidation was offered by the markets
acceptance of the banking house failure
already referred to. During the first
hour the market was dist nctly heavy,
but there was no urgent selling pressure.
The weakest features were Chesapeake
and Ohio, marlborough preferred, South
ern Pacific. American Smelling and
Amalgamated Copper. United States
Steel, Union Pacific, Atchison and New
York Central were under a very moder-
ate pressure, to which they offered
equally moderate resistance.
Reading was conspicuously firm and in
the subsequent dealings developed
strength which was pronounced in COM
parison with the continued heaviness of
the general market.
In the early afternoon substantial frac-
ton declines from last nights closin"
figures We're common, but some stocks.
notably United States Rubber, Republic
Steel. International Harvester and United
States Cast Iron Pipe. showed gains,
and Western and National Lead were
steady.
The market as a whole. however, was
a. il had been, very duh.