The Washington herald., 1911-02-25
WALL STREET NEWS
Panicky Selling Is Result of
Freight Rate Decision.
FULL EXTENT SEEN IN LONDON
Big Declines Precipitated Long Be-
fore Opening of New York Ex-
chanEe-Partial Recovery from
Lowest London Prices Effected.
Stocks TrendinE Upward at Close.

New York, Feb. IA decline of con-
siderable magnitude would naturally have
been expected in the stock market at
any time upon the receipt of such un-
favorable news as that made public last
evening regarding the result of the ap-
plications of the railway companies to
the Interstate CoKznerce Commission for
power to make increased freight charges.
Wall street. however, chose to quite
lose its head over the affair and in this
singular way. that its exhibition of frenzy
was largely confined to operations in the
London stock market before the opening
of business here
Regardless of the fact that the market
for American securities in London is at
best but limited. spectators of various
grades and undoubtedly including to a
very considerable extent spectators for
the decline. cabled last night as in the
early hours this morning orders to their
agents in London to sell such a quantity
of stock without regard to price as to
absolutely swamp dealings in the Ameri-
can department Of the London Stock Ex-
change and to cause a decline in prices
for these stocks there OF absurd and ridi-
culous proportions.
Long before the opening of our own
stock exchange sessions, recessions of
over ten points were shown in London
in such leading stocks as the Union Pa
cifc and Reading common shares. This
only meant, Of course, either that reason
had fed from the minds of people or
dering these sales to be made or that
there had been some monstrous blUnder-
ing upon the part Of brokers intrusted
with the selling orders.
Recover from Lowest Prices.
4 partial return TO common sense before
business hours in this market began led
TO a sharp recovery from the lowest Lon
don prices. but the slaughter in the
American market across the water was
still such that in many instances the
highest prices made for American stocks
there before transactions in our own
market could be undertaken, were below
the lowest prices made in New York for
the entire day. Such, however, are the
perils Of speculation. However, what
occurred was IN and of itself altogether
extreme on whatever basis considered
The first prices made were in the main
from 2 to } points below the last quota
tions of yesterday. Although they proved
as expert knowledge of the market might
have predicted under such circumstances
TO he the days lowest over $4,000 shares
of stock were bought and sold in the first
hour Of business. manifestly representing
frightened liquidation upon an extreme
scale
Finally Calmness became so far restored
as TO make it clear that if liquidation and
selling for the fall was going on at an
enormous rate in the market the power
OF absorption was also exercising itself
in a degree no less noteworthy.
From then on until stock exchange
business was at an end, the path of
prices was upward and at the Close al
though large general declines were ex-
hibited, they were such as to make an
average fall in the standard railroad
shares not greatly in excess Of points.