The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-02
STOCK MARKET IS
STILL VERY WEAK
Effect of Railroad Injunction
Is Detrimental to Prices
LOWEST LEVEL OF YEAR
Brokers Interpret the Action of the
Government as Very Unfavorable
to Railroads and Sell Mar
ket Down Sharply


rate of shringage of prices the stock
market offers a strong impression of
the sinister purport given by the spec
ulators on the action of the federal
government against the advance in rail-
road freight rates
The fall in prices today added to
yesterdays declines carried St Paul and
Reading down 99s before effective re-
distance was encountered.
Many other active stocks showed
losses for the days movement of be-
tween and points. The result was
The abrupt estimate of prices at the
lowest level of the year for all prin-
sipal railroad stocks
The showing was less striking in the
case of the industrials, but the weak
ness In that group was sufficiently
acute to leave room for a presump-
tion of their exemption from the in
huence common to the VIII ole specu7
Ation.
Much must be allowed to the ele-
ment of unexpectedness in the gov
eminent action to explain adequately
the abrupt effect produced.
Opposition to the proposed advance
In freight rates, possibly extending to
legal process, was looked for and tho
railroads have been pursuing course
to meet this opposition and public agi-
tation on the subject There has not
been lacking a broad insinuation that
the liberal expansion in expenditures
which has caused the large increase in
operating cost of the railroads in re-
cent months has been allowed with a
view on It's effect on public sentiment
In favor of the contention of the rail-
roads for higher compensation. The
tone of public discussion of railroads
has shown recognition of the neces-
atty of justifying the higher wages
which were to be asked for Offering
evidence of their reasonableness. The
appeal to the principal of unlawful con-
cert and agreement in the making of
the schedules contained In the govern
ment suit Is what proved the great
est shock to speculative sensfbilitfes
The advocacy in party platform and
In official utterances of amendment of
the law to permit agreement of rates
seems to be taken as assurance of
exemption from prosecution on the
score of identical charges by the diff
ferent roads. The prospect of being
held responsible for restraint of trade
on the mere score of this identity of
sch edule is greatly feared as threat
of something like chaos in the rate
situation.
The supreme court decision in the
Mississippi river and Denver case. up
holding the ruling of the Interstate
commerce commission supplied an eff
fective supplement to the federal in
Junction suit as depressing influence
on stocks. 4aa
The shaping of the railroad bill in
Congress received increased consider
alton as indicating the tendencies to-
ward radical treatment of the railroads
rr-ar IL
icance that the rally in the market
followed the news of the defeat of
the amendment for physical valuation
of railroads.
Nothing else received much consid
Grafton in the days stock market.
Private estimates of the large in
crease in cotton acreage awakened ex-
pectation of a favorable government
report tomorrow. The weekly bulletin
of the weather bureau showed favora-
BILE weather conditions for cotton but
reported the crops delayed by unsea-
sonable weather conditions. Increase
In exports of copper for the week did
not prevent a further shrinkage In the
London visible supply of that metal
The preliminary census estimate of a.
population of hundred millions would
not have passed without notice in
different mood of the speculation.
Large buying for London account
was techfnal demand due to the rapid
decline here but the slower movement
In London which made 1t possible to
sell stocks In London against purch-
ases here at lower prices The boldness
OF the bears left a large uncovered
short interest, which had to advance
by bids to secure stocks when the
liquidation had spent its force. 1t was
this demand which rallied the market
and modified the extreme declines
very materially.
Bonds were weak. Total sales, par
value, $3,269,000. United States bonds
were unchanged.