Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-21
ALLEGED RUPTURE OF POOL
OPENING GENERALLY STRONG


Special Dispatch to The Star.
NEW YORK June 21.-It was by no
means easy to set up reasons for the gen
eral and extensive reaction In today's stock
market inasmuch most OF the over
night occurrences and the developments
with the course of the business session were
of character upon which a favorable
construction might be placed. On the other
hand. however, good deal of stress " as
laid upon those matters of contrary bear
ing. a circumstance which attests plainly
enough the prevailing trend of speculative
sentiment. Thus, throughout the day, the
chief subjects OF discussion were the ie-
ported dissolution of the Southern Furnace
Combination and the appearance of list in
the winter wheat crop.
Today's grain market was indeed strong.
but aside from the Isolated reports of rust,
the general tenor of the advices respecting
the progress OF the crops was by no means
discouraging. Definite intelligence with re-
gard to the disruption OF the iron pool in
the Birmingham district was also want
ing. and in view of the general conditions
prevailing in the iron trade there would
appear to be some ground for the suspicious
expressed that II there has been any cut
ting OF prices in the Alabama district 1t
was for the purpose OF Affecting The stock
rather than the iron market
However the rumors in question were &C
companied by very heavy selling of the
United States Steel stocks. and the decline
IN those securities had as usual a depressing
effect upon the market at large. Sloss-
Sheffield and the other securities more di-
rectly concerned in the rumored rupture
Of the Southern pool also declined although
on very small transactions.
One other matter which was advanced in
connection with the reaction lii the stock
market was the sweeping reduction In rates
ordered by the Kentucky railroad commits
sion. This at all events was held to &C
count specifically for the decline In Louis
Vile and Nashville. although II could hard
ly have been advanced In connection with
the exceptional strength of Illinois Central.
The market In general opened decidedly
strong. its tone then being renewal or
that which prevailed at the close of Dusl-
ness yesterday. Speculative sentiment here
and abroad was stimulated by the reduc-
tion from four to three AMI half per cent
in the Bank of England rate of discount
and further purchases for foreign account
Were conducted in the local dealings. Inc
Bank of England's weekly statement mG de
by far the strongest showing which has
been reported by that institution for mary
weeks. The local money market showed
little alteration rates for call loans contin-
uing low with no material shading In the
terms for long periods Sterling exchange
was decidedly weak. with the rates cecln-
ing TO point which even excited some dis
cussion with regard to the likelihood OF
early importations of gold.
The favorable aspects OF che days stu
ston appeared. however. to carry little or
no influence in the market after the OPEN
ing transactions The subsequent declines
attained very extensive proportions in many
tI-siances, although aside from the matters
mentioned above there was nothing to be
named In connection with the movements
in individual stocks Baltimore and Ohio.
upon which the dividend was advanced yes
terday and American locomotive common,
upon which dividend payments were insti-
tuted were weak in common with the
xnainder OF the market.