Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1910-06-02
FINANCIAL and COMMERCIAL,
LOWEST LEVEL OF PRICES
For the Year of All the Principal
Railroad Stocks.

New York, June Measured by the
rate of shrinkage of prices the stock
market offers a strong impression of
the sinister purport given by the spec
ulation to the action of the federal
government against the advance in
railroad freight rates. The fall in
prices today added to yesterdays de-
clines, had carried ST. Paul and Read
ing down to 8 SIS before resistance
was encountered. Many other active
stocks showed losses for the two days
movement of between five and eight
points. The result was the abrupt es-
Establishment of prices at the lowest
level of the year for all the principal
railroad stocks. The showing was less
striking in the case of the industriaIs,
DuJ the weakness in that group was
a presumption of their exemption
= from the influence common to the
whole speculation
Much must be allowed to the ele-
ment of unexpectedness in the govern
ment'S action to explain adequately
the abrupt effect produced. OPPOSE
ton to the proposed advance in freight
rates, possibly extending to legal pro-
cess, was looked for and the rail-
roads have been pursuing a course in
the opposition and public agitation on
the subject
The appeal to the principle of the
unlawful concert and agreement in
the making of the schedules contained
in the government suit is what proved
the greatest shock to speculative sens
Utilities. The advocacy in party plat
form and in official utterance of
amendment of the law to permit
agreement on rates seemed to be TAX
en- as assurance of exemption from
prosecution on the score of identical
charges by the different roads. The
prospect of being held responsible for
restraint of trade on the mere score
of this identity of schedule is great
~ feared as a threat of something like
chaos in the rate situation.
The supreme court decision in the
Missouri river and Denver rate cases,
UNFOLDING the rulings of the inter
state commerce commission, supplied
an effective supplement to the federal
injunction suit as a depressing influ-
ence on stocks The shaping of the
railroad bill in congress received con-
sideration as indicating that tenden-
cy toward radical treatment of rail-
roads. 1t was considered not with
out significance that the rally in the
market followed the news of the de-
feat of the amendment for physical
valuation of the railroads. The post
ponement of the coal rate increase
from Indiana and Illinois mines was
taken to indicate the genera! effect to
be expected from the movement of OPP
position to these increases
Nothing else received much consid-
era ton in the days stock market. In
crease in exports of copper for the
week did not prevent a further shrink
age in the London visible supply of
that metal.
Large buying for london account
was technical demand. due to the
ra pid decline here and the slower
movement in London, which made it
possible to sell stocks in London
against purchases here at lower prices
The boldness of the bears left a
large uncovered short interest, which
had to advance bids to secure stocks
when the liquidation had spent its
force. 1t was this demand which rail-
lied the market and modified the ex-
trene declines very materially.
Bonds were weak. Total sales. par
va lue SAGE 900. United States bonds
We're unchanged on call