The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-01
PRICES CRUMBLE
IN STOCK MARKET
Action Against Railroads Is
Cause of the Decline
CLOSE AT THE LOWEST
Heavy Drop In Prices of Cotton and
Wheat Fails to Bolster Up the
Market, Which Continues
Weak to the Close

New York. May 31-The volume of deal
ings in the stock market expanded today
again on descending range of values.
The decline became precipitate when it
was announced that the department of
justice was to apply for an injunction
to restrain the proposed increase in
freight rates by western railroads which
was to go into effect tomorrow. =
Prices had sagged from The outset but
on a much less active market than after
this news became known. The topic was
under consideration, however, by reason
of the request made BY the western ship
~lers in Washington yesterday for this
Nction by the government and through
s1n the Senate today h.
n, Prices closed at about the lowest of the
Gay. retrospect of the market for May
zshows that the prospect of increased rates
B by the railroads played an important
spart in the comprehensive advance in
prices of stocks in the month. 1t was the
week after notices had been filed with the
interstate commerce commission of the
. intention to increase western freight rates
started upward from the lower levels of
The year to which they had fallen at
that time
~ 1t was at the same time that the report
Game into circulation of the sale of Amer
1can railroad bonds In Paris to the ex-
tent, according to the then publication of
'rumors, of sl5oo00,ooo. The report of bond
sales remained without official confrma-
ton until last week the aggregate thus
Tar announced falling considerably short
or the figures mentioned in the early
rumors. At the same time the agitation
against the proposed increase in freight
rates has gathered force and strengthened
conviction that serious obstacles were to
be encountered in putting them into eff
feet. The liquidation which was devei-
qcped today was believed therefore to
efollow from the speculative movement be-
sun in the first part of May.
The persistence of the liquidation oc-
REASONED great influence by reason of the
ignoring of the implications of the sharp
decline in cotton and wheat Good prom
ise for the coming harvests was the in
ference In the heavy selling of those
commodities from which nothing but ia
'Sorable auguries for values OF securities
Gould be drawn. Tho extent of the specu-
lation liquidation In commodities gave
sfise, however, to renewed discussion of
rehe banking position, as it is affected by
oelie large credits employed in holding
tip prices of commodities. -. .,.f
The information in circulation in the
s6nancial district as to the western and
southern banking position is contradictory
as to the extent to which loans on grain
cotton and land purchases have been re-
duced. as9
"a iReports that some of the country banks
IRE In the market for commercial paper
sat Chicago are contrasted with assertions
that the trust companies in Chicago have
to meet very heavy demands for credits
from interior banks.
The dependence of the railroads for in
Hfeased freight rate charges to keep up
earnings has been much emphasized in
connection with public agitation against
these increases and great stress has been
| laid on the large increases in operating
costs In recent months on account of the
costs In recent months on account of the
hensfve advances In wages which have
been granted
The Intended increase at all events was
made the instrument for lifting prices of
CLOCKS and the occasion for an extensive
speculation for the rise. The resale of
| tbeo6 accommodations with the programme
endangered came as a natural conse-
Queflce.
Bonds were easy. Total sales, par value
e2.102, 600. United States bonds unchanged
/, IN call.