The daily morning journal and courier., 1906-06-22
STOCK MARKET FEATURES
COMPLETE CHANGE OF FRONT
 WITH LOWER PRICES

Vanished--Steel at Lowest of the
 Year--Good News Didn't COunt-Ru-
 mOrs of Impending War in the U. S.
 Steel stOcks-The Break in Bank of
 EngIands Discount Rates Had No
 Effect.
 The bull feeling of Wednesday and Thursday completely vanished from yesterdays market. Prices tumbled from the start. The collapse was swife.
 Stocks not only lost all that they had gained since Monday but number of them touched the lowest quotations of the year. Incidents that were given highly favorable cast twenty y-four hours previous and legitimately enough
 The break in United States Steel common to 36 1-2, the lowest of the year, precipitated the slump. This was plainly due to the dissolution of the Southern furnace iron pool While not an important matter, any disturbance in the iron and steel trade, particular ly when there were so many arguing that the country has seen the top ot the boom and Is on the decline, is bound to exert a very bearish inhu- ence. Stocks of the Southern Iron com panies were weak. The decline extend- ed to Colorado Fuel, which touched 5O
 The market fopped with rapidity. All of the market letter stuff before the opening was bullish with advice to buy stocks. Within an hour the bull mark at had flattened out completely.
 Sheffield Colorado Fuel and Republic Steel were about as weak as United States Steel There was a gen. eral disposition to get out. Some of the sales were of 1000 to 5000 shares each. The most curious thing was the almost entire absence of transactions in Tennessee Coal. The pool in that stock has apparently been compelled to take most of it.
 The action of Steel stock lately has been a drag on the general market, and particularly on the industrial side of 1t.
 wall street was filled with stories yesterday about the bearish position of John w. Gates and associates They were reported to have been large sell CTS of stocks yesterday their offerings of Steel shares being conspicuous. That operator and friends are now in con- +rol of Tennessee Coal A popular view in Wall street was that some of the re- sponsibility for the cutting of Southern foundry iron prices might be laid at their door.
 All of the different banking interests are said to be bullish on the country and believe that stocks will eventually go higher. But just now they are far from unanimous on the immediate out- look
 A reduction in the Bank of England discount rate to 1-2 per cent, which increased the leading operations of that market in favor of New York, was worthy of more consideration than it received.
 A bear party that can bring about such a change in the market as occur red yesterday has conclusively estab- lished it's right to recognition.
 
 The slump was a knockout blow to the bulls in Southern Pacific.
 The break in Southern Pacific con- vinced many persons that Wednesday s rise was pure manipulation, perhaps intended to help sell some of the pools holdings of Union Pacific. They are worked together. A Southern Pacific dividend would greatly benefit Union Pacific but the street does not believe that a Southern Pacificv dividend is in sight this year.
 Peoples Gas touched the lowest price in three years, when it sold at S91-4. special reason was given for the 2-point decline. There has been steady liquida tion of it at intervals.
 That Southern Railroad stocks should decline on the ordering of reduction of freight rates by the Kentucky com mission was natural and furnished per- haps the most valid excuse for the weakness in that quarter of the mark ct The railroad officials are said to view this order with much uneasiness.
 Interborough-Metr made it's low price early and was not influenced by the break in the general list.
 Rumors of impending "war" in the steel trade were directly responsible for the break in the steel stocks. These were conceded to be much exaggerated, but as the market had been filled re- cently with selling orders in most is- sues, while few persons wanted to buy at any price, it was easy to start the ball rolling down hill and hard to stop it. It was reported that certain promi- nent f1nanciers-one or more of them identified with the United States Steel corporatlon--and a leading bear opera tor were among the largest sellers of the steel stocks yesterday This tended to confirm in the public mind the stor- les about threatened cutting of prices of various departments of iron and steel The facts are that one or more companies have been cutting the price of Southern foundry iron about $1 ton taking contracts at SIS a ton, according to current gossip This resulted In talk ing business away from Northern com panies. Other factors which contr'but- ed to the decline in stocks were re- port from London that the Steel Trust would soon bring out a new issue of $50,000,000 bonds, and the action of the Kentucky state railroad commission in ordering a reduction of 25 per cent. freight rates by railroads of that state. Southern stocks were weak in conse- uuence. Representatives of the Steel Trrsf daoiad that an arIV bond issue