Los Angeles herald., 1910-06-30
MARKET ALARMED
. BY |.C.C. REPORT
Fails to Withstand Rush of Selling
Orders Let Loose
by News
BEARS BECOME COURAGEOUS
All TranscOntinental Railroads
Affected by Decision
on Rates
FEARS BECOME COURAGEOUS
LAssocIated Pressl

NEW YORK June 29.-Speculative sentiment
ook violent alarm today over the decisions an
bounced by the Interstate commerce commits
'sion In a number of important rate cases
Injecting portions Of the traffic Of practically
'all the great transcontinental railroad lines.
|rhe terms in which tho objections to these
I'ates had been contested by the railroad Of
'icials themselves in the course of the hear
.ngs in Washington and the disastrous conse-
'luences predicted by them in the event OF the
objections being sustained come back to con
Front them today while the prices OF their
company shares were crumbling in demoraliza-
sion. Tho market was in no condition to
Withstand the torrent of selling orders which
|was let loose by this news, and the fall in
prices proceeded with a rush
The realization Of the force OF news seemed
+ % come but gradually and the market was In
"a mood of comparative tranquility during the
morning and for some time after the news
departments had circulated the news of the
Interstate commerce commission decisions.
BEARS GAIN COURAGE
The powerful bear party which has taken an
organized form in the recent speculation gath
bred courage from the demonstration Of the
Underlying weakness of the market and took
|every advantage Of the situation This
demonstration came from the quick subsistence
.bf demand for stocks when any striking ten
8dency toward recovery of prices became mani
FEST. A number Of the railroad net earnings
reports OF the day showed better comparisons
been the rule with recent reports, the case
holding true of Reading and Union and
Southern Pacihs. in which there were con-
'served considerable increases in net earnings
'for May, in spite Of the generous margin OF
4increase in operating expenses.
In the metal trades there was sharp up
|turn in the prices Of copper In London, and
.consumptve demand in this country was re-
ported large. although with production still
Sustained. The week. volume OF business In
|pig iron shows an increase. Hopeful views ex-
|pressed by Chairman E. II. Gary Of the U. s.
.Steel corporation on the trade outlook had a
part in shaping opinions Of conditions.
DISCUSS REPORT
After lying disregarded in brokers' offices for
bart of the morning the reports OF the inter-
.state commerce commission rate decisions were
.taken up for consideration.
The bare recital OF the text Of the de-
lcisions conveyed little to the understanding of
the majority OF the trading element owing to
.the highly technical nature Of the questions
Involved. The percentages mentioned as ap-
'plying to the reductions ordered were seized
|upon as efrectng gross figures. and supposedly
total earnings of the numerous railroads con-
'cerned 1t was in this mood that Union Pacific
awas sold down to 6A; Reading, 5; Missouri
sPaciic. ~; st. Paul. Southern Pacific. Louis
willie & Nashville. 4; United States Steel, S%,
land a long list Of other stocks, to points
.The first rush to cover OF the short and the
resulting rally was followed by fresh break
lin prices, but the market closed with a sec
'ondary effective rally in progress.
Bonds were weak; total sales, par value
|s2, sos, 900.
u s. bonds were unchanged on call