The Birmingham age-herald., 1911-02-25
FINANCIAL WORLD IS DEMORAL|zED BY RATE DECISION Railroad Presidents Pessi- mistic-Plan to Make
 an Appeal BOTTOM FALLS OUT OF AMERICAN STOCKS Trading on London Market Is Heav- fest Since Panic of 1895 and
 Western Railroad Stocks
 Decline

increased freight rates, was the axis about which the financial world swung today, both here and abroad, and was re- sponsible for period of demoraliza- ton on the New York exchange.
 Railroad heads continued to express pessimistic views of the situation and both here and in Chicago railroad off cers, together with their bankers and counsel, discussed the situation and de- cided to hold conferences on Monday.
 At these meetings it is undenstood plans will be made looking to an appeal to the new commerce court.
 Because of the difference in time, the local market had ample warning from London of the effect of the decision. The prices of American securities there de- clined from to 8 points before the open ing in New York and during the day in London 1t is estimated the selling movement of Americans reached 100000 shares, the greater part of which was for the New York account. The trad ing is said to be the heaviest of any session in London since the so-called Venezuelan panic of 1885, and according to private cable advices such issues as Reading, Union Pacific and United States Steel were almost without takers, even at marked recessions.
 Losses in Steel
 In this city the opening features were Steel, Reading and Union Pacific. whica came out in initial blocks of 30,O00, 10000 and 5000 share lots. respectively, and the losses ranged from 6ss in Reading to A in Steel. Many other issues suffered greater losses, among them some stand ard dividend payers. The early slump was followed by concerted support, which appeared to come from the most power- full financial factors and the market then became dull and partly stronger. It was not until the Anal hour, however, s,,at the list maEe its greatest hcadway toward improvement and closing prices were from to 3 points above the days low level
 Various expressions of opinion on the decision were uttered by the heads of railroads. most of whom sought to place most unfavorable and discouraging in- depreciation on the outcome. This sen- timent was not altogether shared, out wardly, at least, by financial interests, which seemed to take the result with greater equanimity.
 Defines Financial Status
 It was pointed out in some banking quarters that the decision more clearly defines the financial status and responsi- bility of transportation companies, and throws light on certain legal questions which have heretofore been more or less obscure. It is possible that some of the smaller railroads may deem it necessary to enter upon a programme or retrench- ment and economies, but this, it is be- lieved, will not apply to the more inn portant lines.
 There is authority for the state- ment that the proposed extension and new constructions on the Hartman lines, as recently announced. will not be abandoned What effect, if any, the decision may have upon proposed rail- way financing did not develop in the course of the day.
 Pending Mondays meeting no official action will be taken by the railroads and even then the plans laid will be or a preliminary nature.
 It Is pointed out that the commission as yet has not issued any order upon which an appeal can be taken and 1t Is understood the fight will be opened with an attack on that part of the Elkins law which gives the commission power to suspend rates
 Western Losses
 The security values of some of the western railroad stocks showed aver age losses of points from yester- day Southern Pacific was off "A at the opening. Northern Pacific slumped 4 points; St. Paul and Union Pacific dropped 4H, while Atchison sold at 1021s, decline of AZ points. Indus trials were also affected, 1t being con tended by floor traders that the rail- roads would not be very heavy pur- chasers of material. The Steel common sold off 3h points; Amalgamated Cop per was off 21s Bears took advantage of the situation and forced declines wherever weak spots were found. There were evidences of support and fair volume of short covering.
 Reading was one of the weakest stocks on the list. showing decline of sX, while Great Northern preferred sold at 122, a slump of ii.
 Philadelphia, February 24-The downward ruth of opening prices on the New York stock exchange was reflected today on the Philadelphia exchange, where all stocks SrS the Influence of the rate decision. The United States Steel dropped points to TT; Cambria Steel showed loss of points. open ing at 451k. and Pennsylvania and Reading each lost 2 points
 Liquidation was not upon an exten- sive scale. Later prices recovered about point with the exception of
 Chicago. February 24.--The interstate commerce commissions decision in the rate cases was reflected here today in lower range of prices on the stock exchange. Declines ranged from . rr1t-- II