New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-09
REVIEW AND DIGEST
Week of Liquidation and Lower
PriCes-Supreme Court De-
CiSion Puzzles Wall St.

ences. Unforeseen happenings, mingled
with uncertainties which had prevailed
during several weeks prior, resulted in
a complexity that puzzled not only the
novitiates Of Wall Street but the vet
Grams who have watched the undulation
In the stock market for a score or more
years. The beginning Of the week
brought with it the same foreign war
cloud that had been hanging like the
sword of Damocles threateningly over
the peace of Europe, and which con-
tinued to hold under subsection secur-
ity movements on the bourses OF bu-
rope and was reflected in the actlon
of stocks in this market. Money, Whlch
for weeks had assumed an ominous
tone and a suggested warning or posi-
BILE stringency, and had broken from It's
limited range during later days or the
week before, was still at point whlch
caused the calling of loans and hesl-
tation in price movements when trad
ing began on Monday. The Withdrawn
of funds by Canada, the continued
heavy demand for cash by the interior
and the uncertain political SITUATION
abroad were sufficient in themselves
to depress the stock market ana "
cause heavy liquidation. In addition 10
.lo Of
States Supreme Court handed down on
Monday in the Hartman merger SUIT
which reversed the finding OF the Clr-
cuff Court. was too much for the stock
market, and on Tuesday the beginning
of the most drastic liquidation VIII
messed on the New York Stock FIX
change for a considerable period had
its beginning. The doubtful interpreta-
ton Of the full import of the United
States Supreme Courts decision requir-
ing segregation of the Union and
Southern Pacific lines puzzled not only
the traders Of Wall Street but legal
minds, who presumably are familiar
with the deductions of court decisions.
IT was not alone the uncertain prospect
of what would happen in the final ad-
tustment Of the Hartman companies
but there was the fact that the CIRCUIT
Court finding had been reversed and
that the temper Of the United States
Supreme Court was strictly against |
violations of the Sherman act Follow
ing the puzzled air which at first wall
Street assumed. a feeling OF fear took
possession Of both speculative and in
vestment patrons of the market, and
they became apprehensive of what
might happen to other corporations
should they be forced to segregate their !!
holdings. Particular attention was di- !
rected toward the United States Steel !
Corporation, and in the selling move
ment that ensued the market became al
most demoralized. The Street was filed
with all sorts of rumors by the bears
who for the first time in several months
apparently had an opportunity Of realiz-
ing their ambition. The support which
had been in evidence on other occasions
when during various periods in the last
months raids were attempted seemed
to have disappeared. Another factor
which appeared to be particularly time
~ to aid a depressed movement was
the failure of the American Can Com
pany to carry out what insiders had
allowed to go as unchallenged-the pros
pect of a liberal payment on the &C
ferred stock. The fact that the Amen-
can Can Company increased its pre-
ferred payments from 8 TO Z per cent
did not soothe the speculative minds
who had been led to hope that at least
per cent additional would be paid on
the preferred dividend indebtedness.
American Can was heavily sold in sym
pathy, and there was general raid on
Industrial stocks. The selling in some
cases during the week was made i'm
perative by the calling Of loans among
the banks. An aversion was shown not
only to creating new loan accounts on
industrials but to the carrying longer of
many loans that had already been ar
ranged for On Friday liquidation still
continued, and prices sank lower,
though the market appeared TO be In
an exhausted condition when raids
were attempted, as they failed to bring
out much stock AS a natural result
prices were stimulated by some short
covering. and a fairly steady tone pre-
vailed at the close. Call money had
reached an easier stage, and renewal
rates were much lower. The dispatches
from abroad had assumed a more
cheerful tone; London was a buyer of
American securities in the market and,
the bearish material was
diminishing. The sacrifices which had
been made by small holders of stocks
seemed to be checked, and a favorable |
reaction appeared to be imminent, but |
was not manifested in the short session !
on Saturday.
Regarding the general business situa-
ton, although the Improvement which |
has been shown in the various lines of |
trade was still reported to be in evil
dence, particularly in the iron and |
steel industries, there seems to have |
been a sentimental hesitancy in some
lines during the week as a result OF a
feeling of uncertainty regarding the
affacf ~ tariff raviaion porticularIu