The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-09-24
WALL STREET NEWS
Reaction Follows the Com
paratiVely Large Rise,
PRETExT FOR THE MOVEMENT
Remarks of Mr.. Lane, of the Inter-
state Commerce Commission, Anent
Higher Freight Rates, Cause Dis
cOuragement - ELECTROMAGNETIC
rOpOIitan stock shows Rise.

New York. Sept 2s.-To-day the stock
market was ripe for a reaction. in view
OF its comparatively large previous rise.
and pretext for the declining movement
was found in published reports of the re-
marks OF Mr.. Lane, a member OF the
Interstate Commerce Commission, at the
hearing before the commission now GO
ing on in Chicago upon the application
OF the railway companies for permission
20 make higher rates.
Mr.. Lane was reported as saying that
in his Judgment, generally, the railway
companies ought not TO be allowed 10
make higher rates, although II seems
doubtful if he would really put himself
IN the position thus OF prejudicng q case
which he was hearing. \ quick drop in
the stock market followed shortly after
the opening OF business. but, before noon,
the market steadied and was relatively
strong throughout the rest OF the day.
II was recalled so far as Mr.. Lane was
concerned. that he was the one member
OF the Interstate Commerce Commission
most radical In his hostility to the rail
roads, and that there were reasons for
believing that his views in the present
issue would not be controlling on those
of his associates.
Recovering Movement Seen.
In the recovering movement in the
market. later in the day, the leadership
was assumed at various times by the
Reading. Interborough-Metrop and
American Telephone and Telegraph
shares. No particular reason was mace
known Tor the upward movement in the
latter stock as we'll as the American
Telephone and Telegraph convertible
bonds. which has. however. been more
or less conspicuous for some time.
In the case OF the Reading, explanation
for the rise was logically enough found
in the publication to-day of the annual
report Of the Central Railroad OF New
Jersey. showing nearly S34 per cent
earned in the year on the company
capital stock. over one-half OF which is
owned by the Reading Company, before
deducting 100000 set aside for additions
and betterments.
The rise in all the Interborough-Metro- !
poltan stock and bond issues was based. /
as heretofore, on the practical certainty |
that favorable developments regarding /
the eompanys financial operations and /
general position are impending.
News Rather Favorable.
Financial news was again favorable |
rather than otherwise \ very sharp and I
seemingly unexpected break took place /
in the price OF cotton, based upon a de-
cline in the quotation for the September
option for the delivery OF the commodity,
which was said TO be consequent upon
the tender of notices for the delivery of
about 10000 bales in the present month.
Indications for tomorrow bank state
ment were. OF course. for another large
loss in cash by the banks, owing TO the
continued shipment Of money for agri-
cultural uses 10 the West and South
west with a fair, although in no way
considerable, decrease in the bank sur
plus The general prospect of an easy
money situation Is such, however. that
time money continues 10 be offered at
concessions.