The Washington times., 1911-09-24
FEAR OF STEEL TRUST PROSECUTION
CAUSE OF FURRY IN STOCK MARKET
Information That the Corporation
Wild Rumo Connection Herewith Caused Hyser
Largest Lqudatonn in History Unattended by Panic.
BY JOHN GRANT DATER, ..
Special Financial Publications

opments in United States Steel stock It
must be said that the general security
list held surprisingly strong. There
was, TO be sure, something of a clearage
In the market, for the railway shares
displayed much greater stability than
the industrials. In some quarters this
was accounted for on the theory that
the railway shares had already been
very thoroughly Hquidated and. as a
matter of fact, the present decline
started with such Issues, notably, with
Union Pacific on the decision OF the In
terstate Commerce Commission in the
Pacific Coast and Inter-Mountain rate
cases. Naturally there were several
ISSo,d occasions during the week ,,Sd when the the
thrown into disorder. but they recovered
sharply and reports OF buying OF ex-
cellent character were insistent.
1t Is rather peculiar fact that
though, under ordinary circumstances.
after such violent break and such a
large volume Of business as was trans
acted on Thursday and Friday, Wall
street would hold that the trouble Is
over and that stocks were entitled TO
unity 'on that point on this occasion.
In fact one finds bearish sentiment al
most as pronounced now as at any time
during the decline. One reason for
this, probably, Is that the Street has
lever been able to explain the source
Of the selling of Union Pacific, and even
the decline In Steel Is based rather on
theory than on any definite or concrete
development, and its source, too, Is un-
known. Aside from that the bond and
investment market has developed no
encouraging signs indicating a revival
of public interest, and the political un-
settlement is regarded as accentuated
by Canada's rejection OF reciprocity.
Political Considerations.
Wall Street WAS so deeply concerned
with the affairs of the Steel Corporation
that 1t paid very little attention to any
thing else. The news developments of
the interval, however. were of more
than usual interest. So far as the Ca
madam action on the reciprocity treaty
was concerned, for instance, the bro
kerage element appeared to have for
gotten entirely how much stress they
once placed upon that measure, OF
which everyone felt assureG as a stimu-
lating influence. Leaving this aside. II
would seem as though the hCmiliating
outcome Of the sole purpose for which
the special session was called and as a
result of which the Administration party
was split, must complicate matters seri-
ously for President Taft, and II looks
now as though II might force the tariff
Issue lHlO tNtu
nent place at the regular session Of
Congress and in the forthcoming Presi-
Dental election than before.
The |sews of the week was by no
means all bad, though from the attitude
OF the speculative element and the
OF the Street one might
have reached that conclusion. The ad- /
vices from abroad concerning the Mo-
roccan situation were distinctly more
favorable, and amounted to a definite |
assurance that an agreement had been
reached by France and Germany in that |
matter. The Government trade state |
ment for August showed excess exports |
Of SlS,414.4O3, bringing up the total for
the calendar year to date TO S252.0H, H,lS9. |
This excess of exports compares with |
an excess Of imports of Sl.CoO,O 900 for the |
same period last year. and shows
most gratifying change for the better:
Though as a result OF the defeat Of
wheat advanced violently.
higher -four and prob
ably lessened shipments OF oreadstuffs,
cotton broke sharply to the lowest price
since June, 1909. This should facilitate