The Washington herald., 1913-02-22
Persistent Hammering Carries
1t Below Par and Weakens
the Market.
OTHER RAILS RESIST DROP
Local Stocks Pursue Usual Course in
Brisk Trading and Firm
Prices.
By L. A. FLEMING.

While the New York stock market held
fairly strong through the morning hours.
weakness developed on the persistent
hammerng of Southern Pacific, which
broke in the middle of the afternoon
and went down to 90. During the day
also several large loans We're called. in
which California and Mexican petroleum
were used as collateral. This caused a
break in those stocks, and the whole
petroleum group.
Cessation of hostilities in Mexico and
the better feeling which prevails there
ought to be a good market factor, and
would be except for the overwhelming
short interest in the market and the atti-
tude of waiting which brokers have as
sumed for the past day or SO for the
meeting of the Supreme Court next mon
day. which most traders believe will be
fruitful in decisions in which the street
is interested. The bank statement was
favorable, and was known to be so before
it came out. Yet the market remained
heavy to the end. and closed at or near
the lowest prices for the day.
Railways Hold Well.
Taking the situation all in all, the rail-
way stocks are showing good resistance
to the downward movement. and the
market rallies easily and quickly when
there is a rally. so that aside from the
big short interest to which reference has
Deen maue tnS IL nopt-
full than the tape quotations would seem
TO indicate.
The condition of Mr.. Morgans health
continues to be a disturbing element in
the market. or is made such by the tao
tics of the bears. yet there is no con-
hrmatiCn whatever that he has been or
is seriously ill. All reports of illness
more than slight indisposition due to a
cold are constantly denied by Mr.. Nor
gan's family in New York, and his bust
ness associates there. He seems TO be
enjoying his trip abroad. while the bears
at home are killing him every few days
and have him i'll with every ailment that
could attack an old man.
The local market was firm and bust
ness fairly brisk yesterday, local rail-
ways and utilities were chiefly bought
and sold. and a few trades in bonds
were affected.
While suits against big business
are nled every few days, the government
is also losing them occasionally, when
the opinions of the Attorney General fail
10 present evidence which enables the
case to stand on all fours. This was the
result yesterday when the suit filed
against the federal Sugar Company was
dismissed by Judge Coke, who sustained
the demurrer of the defendant company.
Southern Pacific Report.
The annual report of the Southern Pa
Cific. which was issued yesterday, did
not make any reference to the dissolu-
tion of the Hartman merger that was
ordered by the Supreme Court. The an
nual report was for the fiscal year ended
June 80 last. and its appearance was de-
layed because of the interior changes in
the management of the company. The
report was signed by the former chair
man. Judge Lovett. 1t indicated decline
in net earnings for the year of SS.S52.eo,
which sum. however, was almost fully
recovered during the first six months of
the current fiscal year owing to the large
crops and the consequent Improvement
in business. An interesting feature of
the statement was the losses that the
company is shown to have suffered as
a result of the uprisings in Mexico. These
losses are in the form of bridges and
general equipment and claims have been
made and additional claims will be made
on the Mexican government for damages.