New-York tribune., 1910-06-30
FINANCIAL MARKET
Rate Decisions Cause Heavy
Break in Stock Prices.

Stock market prices suffered big losses
in yesterdays trading on volume Of
business that reached the heavy total
of 1,043, 11S shares. In the afternoon
semf-demoralization developed. and the
prominent issues, with only few ex-
ceptions, dropped to new low records
for the current year, maximum declines
running from TO almost points
throughout the active list. Bear traders
made large profits, individual capitalists
and institutions bought on the down.
ward movement without attempting to
support the market, and bull pools with
weakened margins, to say nothing Of
frightened investors sold regardless Of
prices obtained for their holdings. En-
couraged by interstate commerce de-
cisions against various railroads on the
rate advance proposition, the bear ele-
ment hammered prices in all parts of the
market, its operations inducing liquida-
ton of speculative bull accounts, mar
gins on which long since ceased to rep
resent a safe proportion Of the actual
purchase price of issues concerned, while
also attracting selling by people who,
from an insane reasoning, believed solid
American railroad and Industrial issues
the least valuable investments in the
world.
In a series of decisions by the Inter
state Commerce Commission certain Far
Western railroads are directed to reduce
rates and fix reasonable rates, and in the
so-called Nevada rate case the commits
sion's ruling appears to be in line with
the recent decision Of the Supreme Court
| In the Missouri River rate case, the lat
ter, it may be recalled, causing at the
time of its announcement great depres-
sion In Wall Street. The speculative
markets, being in condition Of nervous
apprehension and looking for untoward
developments as a consequence Of the
declines of recent days, accepted the
news from Washington as an end of all
things, at least for brief period, in the
course of which Reading, Southern Pa
cific. United States Steel, Union Pacific
and other issues broke to prices that
represented most attractive invest
ment yield to actual buyers: and while
Union Pacific and Southern Pacific
two companies for the month of May
came to hand, showing large gains in
net returns after heavy increases in
gross receipts in spite of the much
talked OF advances in wages and the
general cost of operation. 1t is quite
evident that the railroads will continue
to make money notwithstanding rea-
hx-t he Jnfe a ia l.
merce Commission in favor of the ship
pers and the blue days in Wall Street
Domestic exchange appears to be NOV
ing against New York, and current indi-
cations suggest the development Of a
more active demand for funds at interior
points in the near future. 1t is likely
that the inquiry for crop moving money
will begin earlier this year than is ordi-
narily reported. and the fact that the
Sub-Treasury has just transferred $780,
oO0 to San Francisco for the account
% local institutions apparently fore
shadows "a considerable withdrawal by
other cities oI tl.r,1 .,ank balances at
this centre. 70. ti.i. reason loan quota
tlons may soon harden, although the
heavy liquidation that has been going on
in the securities market should have the
effect Of maintaining a fairly easy level
of loan quotations for month at least
especially as the prospects do not point
to an active demand for money against
new stock market commitments at pres
ent If money advances materially in
the autumn gold doubtless will be i'm
ported, unless our export trade goes to
pieces, of which there is now no indica-
ton. Indeed, sterling exchange is NOV
ing in our favor, and if the country has
normal crops We should be able TO Sc
cure abroad all the money we may re-
uuire fn the autumn. 1t need not he as