New-York tribune., 1911-09-28
FINANCIAL MARKET
Violent Fluctuations in Stocks,
with Net Changes Small.

Rarely IN the history OF the lOCbl sICCh
market have the price fuctuations been
so violent as were those Of yesterday
following the overnight statement Of
the United States Steel Corporation.
made through Mr.. Morgan. whose par
ticipation as a signer of the announce
ment was an act believed to be without
precedent, and Chairman Gary. The
statement gave reinsurance to the hold
ers of the Steel Corporations securities,
who realized that even if the govern
ment should elect 10 bring an action for
the dissolution Of the corporation the
status Of their shares and bonds would
not be disturbed for fully two years, the
probable minimum period required for
conducting the preliminary hearings ana
for adjudication Of the cause by the
lower court and the Supreme Court Of
the United States. II was also reassur-
ing in its expression Of the judgment Of
the directors and their counsel that the
organization of the corporation was legal
and its management not open to attack
in the courts by reason Of improper acts
committed.
These considerations appealed forcibly
also to the very extensive short interest
in Steel and in the general market, their
disturbed state of mind being reflected
in the tremendous rush TO cover at the
opening. when Steel common sold from
30 10 3 points up and the initial prices
e MANY Of the other active issues were
. points or more higher than the final Of
the preceding day. The news Of agree
menr between Germany and France on
the Morocco question also was bull
ish influence, and the strength of Ameri-
can stocks in London before the opening
Of this market figured to some slight eX-
tent.
The high prices Of the session were
made in the first few minutes Steel
common touching its high at the very
Npening. The tide quickly turned many
holders of stocks at the low levels OF
the last few days seizing the oppor-
tunity TO take profits. and selling by the
bear party being renewed as soon as the
first rush to cover was over and the ad-
vance showed signs Of slackenins. The
market moved downward, although with
constant fluctuations, and its course was
hastened by the weakness which de-
veloped in the second hour in st. Paul,
the pressure upon which gave rise to
r1mors of a market contest between the
Morgan party, who figured in the re-
norris as championing an advance IN
stocks, and the so-called Standard Oil
marty. committed to belief in lower
prices for securities.
Rut the Morgan STANDARD Oil conflict
theory was not needed 10 explain the de-
cline and fuctuation following the Wild
advance at the opening Of this eventtul
dav for recession naturally succeeds an
unusually rapid advance, and, further
the Steel statement may be regarded as
rather of negative than Of positive mar
hot beneft. and could do no more than
make certain the postponement Of
evil day for the corpora
tion. If it had been possible to announce
that the steel Corporation had had the
assurance Of the Department Of Justice
that its organization was legal there
would have been different stock mar
ket story Of the day
The market had lost practically all OF
the early gains soon after noon. when
weakness suddenly developed in the
Wabash 4 per cent bonds, which, open
ing a triAe up, at 5714, had declined
about > points by II o'clock. and then
in short time plunged down TO A.
loss of moro than 10 points, the common
and preferred stocks also declining rap
idly. The entire market followed the
Wabash issues. some OF tho leadlnS
stocks touching then their low Of the
daV. and this depression was followed
bv a rally on the issuance OF positive de-
mails of reports OF a reCciVership Tor
Wabash and explanations OF the reason
for the drOp i'm the bonds At nearly the
end of the day came another period or
acute weakness I'm which steel common
reached it's low. JOls and then final
rally this stock closing with ro' loss
Of only onc-eighth Of point at J6%,
and steel preferred with "A net gain or
one-nalf of a point Many OF Che issues
showed net gains at the close, but losses
running from to 3lA points were made
by several Of the standard railway is
sues. the chief sufferer being 81. Paul,
and next 10 IL Union Pacific and North
ern Pacific. The total transactions were
4 r-S 40 -toree I4YcY.t dave lUria