The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-04
SEVERE DECLINE IN
THE STOCK MARKET
Brokers Are Pessimistic and
Prices Take a Tumble
RALLIES ARE FEEBLE
Injunction Against the Railroads Il
Cause of the slump and Speech
of President Taft Is Not
Very Reassuring

New York June 3-Prces of stocks
broke again today with declines almost
unexarnpled outside Of times of absolute
panic. This was after show of resist
! ance to the forces of depression during
the early hours, when the heaviest SELL
ing that appeared seemed to be easily alb
sorbed and prices rebounded repeatedly
from the declines.
The action of the market at that time
gave rise to an impression that the worst
of the shock had been absorbed and that
conditions. were ripe for recovery. I'M
covered shorts We're made nervous by
this action of the market and helped on
the tendency by their buying to cover.
The kind of explanation offered for the
recovery showed plainly how attention
remained centered on the dominant topic
pr the governments policy toward rail-
road rate increases. There was circulated
for instance an expression of confidence
from an anonymous legal authority that
the injunction against the western trunk
line rate advances would be promptly dis
solved Another rumor alleged that Pres
ident Taft contemplated statement in
one of his western speeches calculated to
allay the apprehension which has found
expression in the stock market. There
was attempt to offer authority for
these assertions.
On the other hand there was no lack of
authority for expressions of the gloomiest
views of prominent railroad officials OF
he disastrous consequences they saw
threatening from the holding up of the
Intended rate advances by the railroads.
President Brown of the New York Cen
raj was quoted in a published interview
which was quoted and commented in
Wall street as saying that the credit of
he railroads has been almost totally
destroyed by this action dhe rate injunc-
ion), and it will be almost impossible, in
ny opinion, for any railroad to secure
pan here or abroad"
President Brown was quoted further as
aging that s10,00O,000 of New York Cen
raj bonds had been sold in France at SSla
ents on the dollar. Almost at the same
me President Browns colleague. Albert
Harris, general counsel of the New
ork Central, was quoted on his fresh ar
val home from France, as expressing
reat satisfaction with the success of the
ale of S10,000O00 Cleveland Cincinnati.
hicago and st. Louis bonds, which are
be issued to the French people at "a
scount of per cent or price of 81. So
+ as could be learned the two references
ere to the same transaction, and the
screpancy in the two views of the mat
went Unexplained fgs-s-.f r.
as very effective in spreading the anx-
ty, in precipitating liquidation and in
'ealling prices to the lowest level of the
ar. There sprang up a series of rumors
alipg With the probable further steps to
taken by the government in the prose-
ton of the railroads, having TO do with
Q alleged intention to break the various
Rffic associations, to enjon other pro-
|sed rate increases and to proceed for
ntempt against such railroads as were
joined under old lawsuits against the
ans Missouri Freight association and
joint traffic association. Use was
Rde also of the fragmentary extracts
pm President Taft's Ada, o., speech, es-
cially the passages: 1T is reasonable
suppose that at some time within the
xt decade there will be some reaction
some financial stringency, or perhaps
Financial panic" Also the passage: II
nix the issue of most Importance will
the question of the preservation of pri-
e property, or its destruction and
pstltution of certain kind of co-epera-
joint enjoyment of everything which
he ideal of socialism,
aese words of the chief executive were
brted on the news tickers almost
bout context, and In sensational sug-
Ftiveness of extra spacing between the
rs.
he mode of the speculation became
ry hysterical at times, and at last
ces were not far from the lowest
Ion Pacific was down 5% on the day.
Reading. New York Central the other
ifics. United States Steel Amaga-
ted Copper and the railroad equipment
cks in the neighborhood of points,
qnds were easy. Total sales par value
$1,000. United States bonds were un-
ngeG on call.