The San Francisco call., 1910-06-30

BIG DECLINE In
RAILWAY SHARES

NEW YORK, June 29.-Specula-
tive sentiment took violent alarm
today over the decisions an
nounced by the interstate COM
merce commission in a number of
important rate cases affecting por
tions of the traffic of practically
all the great transcontinental
railroad lines.
The terms in which the objec-
tions to these rates had been con-
tested by the railroad officials
themselves in the course of the
hearings in Washington, and the
disa consequences predicted
by them in the event of the OBJ
jections being sustained, came
back TO confront them today while
the prices of their company shares
were crumbling in demoraliza-
tion.
The market was in no condition
to withstand the torrent of sell
ing orders which was let loose by
this news and the fall IN prices
proceeded with a rush.
The realization of the force of
the news seems to come but grad
ually, and the market was in
mood of comparative tranquility
during the morning and for some
time after the news agencies had
circulated the bulletins of the in
terstate commerce commission de-
~
which has taken an organized
form in the recent speculation.
gathered courage from the demon
stratfon of the underlying weak
ness of the market and took every
advantage of the situation. This
demonstration came from the
quick subsistence of demand for
stocks when any striking tend
ency toward recovery of prices
became manifest.
A number of the railroad net
earnings reports of the day
showed better comparisons with
last years corresponding periods
than had been the rule with re-
cent reports, the case holding true
OF Reading and Union and South
ern Pacific, in which there were
conserved considerable increases
in net earnings for May in spite
of the generous margin of in
crease in operating expenses.
In the metal trades there was a
sharp upturn in the prices of cop
per in London, and consumptive
demand in this country was re-
ported large, although with pro-
duction still estimated. The
weeks volume of business in pig
iron shows an increase. Hopeful
views expressed by Chairman Z.
II. Gary of the United States steel
corporation on the trade outlook
had part in shaping opinions of
conditions.
After lying disregarded in bro
kers' Offices for part of the morn
ing, the reports of the interstate
commerce commission rate deci-
sion were taken up for considera-
tion.
The bare recital of the text of
the decisions conveyed little to the
understanding of the majority of
the trading element, owing to the
highly technical nature of the
questions involved. The percent
ages mentioned as applying to the
reductions ordered were seize5
upon as affecting gross traffic fig
ures and, supposedly, total earn
ings of the numerous railroads
concerned.
1t was in this mood that Union
Pacific was sold down 6a4 Read
ing. 5; Missouri Pacific, AZ; St.
Paul, Southern Pacific and Louis
vile and Nashville, 4; United
States steel. 394, and a long list of
other stocks l to 3 points.
The first rush to cover of the
shorts and the resulting rally was
followed by a fresh break in
prices, but the market closed with
secondary effective rally in
progress.
Bonds were weak. Total sales
(par value), S2,S95,0O
United States bonds were un-
changed on call.
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10 nrior lien Is 50 -IVa ca- fpo,, 90