Omaha daily bee., 1910-07-01
NEW YORK. STOCKS AND BONDS
Violent Crash in Prices Almost With
out Explanation.
UNION PACIFIC FEELS DECLINE
Drop I'm wheat ts Accompanied by
Reports of Beneficial Rains in
DrOuth-stricken District
of Northwest.

NEW YORK. June $50 violent a crash
In prices OF stocks as that which eliminated
TO-DAY is not to be explained by the sur
face causes, which have been advanced
from Gay to day, such as the impaired
spring wheat prospect, the reduction of
railroad rates on the transcontinental rail-
roads ordered by the Interstate Commerce
commission and similar explanations
Deeper causes are indicated and were
sought by inquirers in the financial dis
trict today.
From the high point Of last Thursday
Union Pacific sold TO-DAY at decline Of 20
points, and from that maximum there were
varying losses through the whole list OF
active stocks. The June advance followed
the agreement reached between President
tart and the railroad presidents to sub
init the proposed rate advances TO the op-
Grafton of the new railroad law and the
movement by the representatives Of the
great private banks to secure Assents from
great shipping interests 10 the proposed
freight rate advances.
The violent relapse which has followed
Things forNa ard the operation Of more gem
eral causes, which II was supposed had
| progressed so far towards correction as to
pave the way for a general recovery. The
stock market Of today and yesterday
showed how drastic a read1ustment re-
| manned TO be made. That the progress Of
| correction may have to extend yet beyond
| the speculative of the stock market is
| an inference that was common today.
| Probable dividend reductions by some Of
/ the railroads were freely discussed as
| events foreshadowed from the reaction OF
| the stock market.
The outcome follows the conviction of
| the unstable conditions which were the
| outgrowth OF the premature recovery from
the crisis Of three years ago. Starting
| stock market last year, there followed an
| Initiation Of values in all directions, an
! era Of extravaganza in living and in bust
ness and Industrial methods, immobilizing
| OF capital resources in land speculation and
| irrigation projects at a time when business
| was in need Of resources.
Han
| sive commitments In speculative holdings
of stocks, which were carried through the
elimination of last years rise in October,
| have been obstinately held over since In
the faith that each suggestive downturn
In, the market was simple reaction des-
! tihed to be followed by a resumption OF
} the march of progress. 1t was current be-
lief that market pools involved in such
I, holdings were being nquidated yesterday
. and today In response to the imperative
B adnonition Of authorities in the banking
! and financial world. The process proved
painful one and involved convulsivs
n The quieter tone in the later dealings was
proof of the relief already afforded.
The more immediate circumstances bear
ing on values indicated Improvement in
some respects. The drop in wheat was &C.
, companied by reports OF beneficial rains
: in the dro1th-stricken district of the
: northwest The Kansas state crop repor-
was held to give excellent promise fol
winter wheat.
, Private estimates Of the cotton croI
were held to foreshadow a good govern
ment report Of conditions tomorrow
More attentive perusal of yesterdays or
ders by the Interstate Commerce com
, mission modified the impression of theil
inclusive scope over practically all rail
road rates
. Money on call went no higher than "a
per cent In spite of the disturbance OF loan
connected with the days impairment o
margins
! Bonds were weak. Total sales par value
So $780, 600.
United States bonds were unchanged o.
! call
Number OF sales md Leading quotation
" on stocks were as ullows: