The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-08
QUICK RECOVERY 7
! IS MADE IN STOCKS
Prices Shoot Upward on News
of Railroad Agreement
SHORTS COVER SALES
Railroad Officials Are Satisfied With
Agreement Made With Govern
ment on Ratcs-Confdence
Is Strong in Market

New York, June THE stock market
greeted the news of an agreement on the
rate dispute between the government au-
thorities and the railroad executives with
a spasmodic recovery of the declines of
several days past. The excess of specu-
lative operations for the decline. based
on that conference, was demonstrated be-
yond dispute. The demand from uncov-
cred shorts was so, urgent and imperative
as to cause an opening jump In prices
rarely equalled for wildness and disor-
der. When the first wild scramble of
the bears to cover shorts was over there
ensued a more conservative view of the
situation. and it was not until the end
of the day that prices rose again to the
best
The difficulty of apprasing the news
grew out of the stress laid from the
previous speculation on the immense i'm
portance to the railroads of the in
creased freight rates which the govern
ment Twas opposing. The generalization
In stocks caused by the injunction against
small percentage of the increases con-
trasted with the violent rebound upon the
postponement by the railroads of all the
proposed increases and their ve' ry
submission to the provisions of - r.
ing railroad law constituted a seeming
anomaly The support came partly from
the greatly increased short interest which
was forced to buy stocks, but which
hoped to do so at further decline. 1t
was evident also that much-needed relief
was felt by the railroad officials over the
abandonment of the appeal to the anti
trust law in return for the surrender of
the proposed increased rates.
The information of the announcement
from the White House was enhanced by
the professions of satisfaction from rail-
road officials who had expressed most
alarm over the suit to enjoin the rate ad-
vances and their opinion that the threat
ened cessation of Improvement expendi-
lures might not prove necessary. Nego-
tiatons it was said, for the sale of S15,-
GOO Michigan Central bonds in Paris,
which had been suspended. would be re-
sumed. and this assertion was of more eff
feet on sentiment than yesterdays news
of the sale of $751; 900 of Southern Pa
ciflc bonds in Germany in spite of the
rate injunction.
The unsettled tone which interviewed
after the opening jump was much empha-
sized by the natural tendency to realize
profits on SO considerable rebound The
selling proceeded to such lengths, and
especially in ST. Paul, as to arouse a
suspicion of renewed liquidation on ac-
count of an important capitalistic group.
Public expression of lukewarm satisfac-
ton by a prominent member of the group
seemed to shift suspicion to that of
purpose to depress prices, and the mar
ket thereafter rallied
The agreement made by the railroad
executives to leave the rate increases to
the operation of the new railroad law
shifted attention to the progress of that
measure through it's final stages and the
definitive for which 1t might take.
The market was favorably affected by
the computations made by railroad Of
ficlals of the time that could be saved
in putting into effect new freight rates
by the consideration that could he given
to the new schedules by the commerce
commission pending the enactment of
the new railroad law.
Bonds were irregular; total sales, par
value. %, 900; United States bonds were
unchanged on call.