Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-06-01
ACTION or GOVERNMENT IN EN-
JOINING RATES AFFECTS
MARKET.
NEWS WAS UNEXPECTED,
BEARS REAP RICH HARVEST
Has Diseourasins Effect on Wall
street-Was Unprepared For Sudden
Move Of Taft and His Legal Depart
ment-Readins Stocks Were the
Hardest Hit.

New York, June 1.-Actlve unloading
of stocks characterized the opening OF
the market today, resulting in violent
declines. Western and Pacific railroad
stocks were most affected. st. Paul
fell points; Atchison. Denver q
Rio Grande, and Iowa Central 2;
Northern Pacific tx; Union Pacific
and Canadian Pacific 1ss Baltimore
& Ohio, New York Central, Great
Northern preferred, Missouri, Kansas
G. Texas !, Rock Island. Norfolk d
Western and others point or more.
The first effective rally occurred
about noon, when shorts covered. The
rebound ran to point in extreme
cases.
AS the afternoon progressed rallies
from the low level of one TO two points
became quite numerous and Reading
rebounded Us and Baltimore & Ohio
i2A.
New York, June 1.-Announcement
from Washington this morning that
President Taft had instructed the at
torney general to begin injunction pro-
ceedings to prevent the proposed IN
crease in freight rates on western rail-
roads came as a complete surprise 10
Wall street Naturally it has very
depressing effect on security values.
Selling of the stocks of western ROADS
began at once and was continued ac-
lively turnout the session. Inc gen
eral result was that losses ranging
from a point TO 5 points were recorded
on the important issues.
The declines were not limited by any
means to western roads. The stocks
of eastern roads, and even the indus
trials, suffered as well. Prices every
where were lower, and the bear trad
ers had harvest.
News is Diseouraeing.
| The street" was considerably dis
| couraged by the Washington news. Inc
beginning Of this proceeding against
| the railroads was considered to be
manifestation of antagonism on the
! part Of the administration against cor
poration interests in general. And the
| effect of this move was all the worse
because the street" had not antici-
pated it and was unprepared Inc
! market showed very little resistance
| and there was almost no recovery from
! the low prices of the day. Ihe closing
was virtually at the bottom and the
/! tone was weak and indicative OF stu
further declines.
| The first selling demonstration after
the receipt Of the news from Washlng-
ton was in Union and Southern Paclnc.
and those stocks suffered very severe
losses. Southern Pacific was dumped
in large lots nearly all thru the ses-
sion and was down AZ points to III Is
at the close. Union Pacific broke 3A
points to 1885 at the end of the SEES
sion. and had been a quarter OF a
point lower during the last half hour
of the trading.
The Hill stocks Great Northern
preferred and Northern Pacific-fared
only little better than the Hartman
stocks. Northern Pacific sold down
3as points 20 12S, and Great Northern
was off 21a points to 1924 Atchison
dropped points to the low price OF
1864 and finished on the bottom, st
Paul was down 21s points to 1864 and
Chicago and Northwestern dropped
a couple of points to $50 Other wes-
tern and southwestern roads suffered
lin less degree.
Reading Hardest Hit.
Reading common was particularly
active all thru the day, tho that roat
ceedings against the western lines. Its
decline Of "a points was the larges'
suffered by any of the important rail-
} road stocks Reading, of course, is c
highly speculative issue and very sus'
: ceptible to market attacks of this, kind
New York Central sold down 3 points
! Pennsylvania, y, and stocks of othe
prominent eastern roads were of
, from l to points.
The industrials sympathized natur
2 ally with the weakness Of the railroad
| stocks and nearly all the prominent is
sues sold lower. United States Stee
8 common was traded heavily all thru
I the market and closed down nearly
, points at 1878. American Locomotiv
S land other railroad equipment stock
e were weak naturally and other indus
a trials only remotely connected wit
railway interests broke along with tn
4 rest Of the market. The list at tn
! close of the session was decidedly un
: easy and all the indications favore
Q still lower prices today.