The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-07
DOWNWARD TREND
IN STOCK MARKET
After an Early Advance Prices
Decline Rapidly
TRADING rs VERY DULL
Disposition on the Part of Bulls Not to
Follow the Advance Saps Strength
Of the Market and sharp
Declines Are Scored
TRADING rs VERY DULL

broke violently to new low levels for the
year in the late session of the stock ex-
Z change today after nervous and feverish
rfiuctuatioDs up and down for most of the
session.
The break was coincident with the cir
cu1ation of reports that the railroad pres
idents who have come to Washington to
: protest against the governments action
to enjon western trunk line freight rates
had given up hope of securing any modi-
fieation of the intended course of the law
officers of the administration. There had
been much talk of the conference to be
held at the White House later in the day
between President Taft and the railroad
executives and conjecture was rife over
what it was hoped to accomplish by this
meeting.
The speculation assumed that some
measure was sought that would be of
greater satisfaction to the railroads. This
assumption proved disquieting to the UNI
covered bears and their demand to cover
proved a strong sustaining influence
prices during the early session. At one
time the level had been lifted 1 to points
over the closing level of Saturday quite
generally. London Joined actively in the
buying as has been the case at most
periods of the recent violent decline and
speculative sentiment took on quite a
cheerful hue.
The excessive dizziness into which the
trading fell at the advance argues an I'M
Willingness on the part of the buyers to
follow the rise and indicated weak I'M
dertone, but it was hoped that the hest
tation was due simply to desire to await
the outcome of the White House confer
ence. During the time of advancing prices
there was supposition entertained that
some sort of working agreement had been
arrived at between the railroads and the
government authorities for a solution OF
the rate controversy on lines which would
relieve the anxieties of railroad officials.
The assertion of President Brown of the
New York Central was taken as text
for this suppostion 20 the effect that the
eastern railroads offered more than a
month ago to suspend the new rates I'M
der consideration pending an investigation
by the interstate commerce commission as
to their reasonableness.
This would be in conformance with the
requirement of the new railroad laws and
would insure the submission of the pro-
posed changes to the new law.
1t was even suggested that the new
situation might bring change in the law
in conference between the houses of Con-
gress, which would permit agreement on
rates where the elimination of that pro-
eli frop ba dpnip ictr inn +,
ing been prompted by the action to en-
join the new rates.
News of crops and of money conditions
were taken to account partly for the bet
ter tone of the early dealings. Expressions
of satisfaction were heard from western
banking authorities over the benefit to
the credit position of the liquidation which
has been effected in grain, cotton and
stocks also, it was estimated. by the pay
ing off by country borrowers of loans
for investment in farm paper
In contrast with the prevailing tone in
Wall street there was quoted leading Chi
cage bankers as saying: Railroad earn
ings are still satisfactory and the DISPOSE
ton of many roads to enlarge dividends,
In spite of their claims that higher freight
rates are necessary in order to cover ex-
penses of increased wage allowance.
shows that the country's transportation
is in fairly prosperous condition.
News of the sale abroad of 100000 of
Southern Pacific bonds was not generally
known in Wall street before the market
closed
After breaking from to points prices
rebounded points. with the demand from
the bears to cover shorts, and closed In
considerable disorder.
Bonds were irregular. Total sales, PAT
value. $1,s540oo.
United States bonds were unchanged OF
call.