The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-06-04
WALL STREET NEWS
Stock Market at Low Ebb
Surprise to Traders.
RECOVERY WAS EXPECTED
while Optimistic Change May Take
Place at Any Time, Yet Great De-
preston In All Lines of business
Seems Imminent with Little Pros
pect OF Heavy Dealing.

New York. June s.-The extreme de-
moEalization of the stock market to-day
was. perhaps. surprising TO many people
who believed that some recovery In prices
was due Tor technical reasons after the
great extent OF the declines Ia the four
preceding days
But the days break was not, after all,
illogical. first from the point OF view OF
the mere speculative trader after the
failure OF the market to show any rally
Ing power either yesterday afternoon or
IN the early dealings this morning. and.
secondly. as adjudged by the broader
standard OF the highly unfavorable i'm
preston made upon financial sentiment
by President Taft's entirely unlocked for
action in bringing an injunction suit TO
prevent the railway companies from Sc
curing an advance In freight rates.
II is now evident that this action has
caused shock OF the first magnitude 10
the proposed advance Ii rates. but they
didn't think that these objections would
enlist the efforts OF the national admins
tration.
The Comparative Condition.
They supposed. as they had a right 10.
that such objections would take the usual
course Of protests by shippers to the In
terstate Commerce Commission, and they
were prepared TO justify the new rates
ostore that body, just as they have done
In many similar instances since the In
terstate Commerce Commission was es-
tablished. AS the case stands now, they
are not 10 be IN receipt Of any Offset to
the heavy Increase IN operating expenses
That has been matter OF necessity in
recent years. and also TO the greatly en-
laTged outlay in wage increases that have
lately been agreed upon.
1t becomes, therefore, a subject matter
Tor the most serious consideration with
tnese railway companies, whether. even
II the crops this year are good, and an
ordinarily heavy quantity Of business IS
transacted. they can hold their own
financially. keep up their properties as
they should be kept up. and pay divi-
bends upon their shares at the current
rates.
IL seems certain, at any rate. that they
must cut their expenses TO the mini
mum. and due notice of their intention
TO follow this course was to-day infor-
mally made by the presidents and ac-
tive committees OF many OF the leading
companies.
Means Business CurtaiIment.
This must involve. as would seem, a
general eurtailment OF business over the
country. The iron and steel manufac-
turing concerns dependent upon orders
for railway equipment and the like must
naturally suffer. and, indeed, cancella-
tons have already been made OF large
orders OF this kind previously given.
Under normal circumstances a decline
In the stock market that has reached
the proportions OF that witnessed in the
present week. would be followed by a
quick recovery, due to the usual buy
ing in Of stocks. sold speculatively for
the fall. and 10 the operation OF other
similar forces.
Such recovery is very likely. and may
take place at any time But it is OBJ
vious that II the situation is before the
country where a great depression In all
lines Of business Is, or seems to be i'm
minent, buying OF stocks, either by the
public or by banking interests. is not
apt TO be cverenthuslasticaIly conducted.