Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-10-27
Market Is Deiuged by a Flood
of Steel Securities.
QUOTED VALUES CRUMBLE
First Hours Trading Sees 200, 900
Common Shares Sold.
SUPPORTING ORDERS FUTILE
Each Feeble Rally Starts New Ava
lanche of Selling-Lowest
Prices in Years.

NEW YORK, October 5.-Steel Cor
poration securities slumped badly on
the stock exchange today as re-
suit OF the federal suit to dissolve the
billion dollar" steel combine. There
was an outpour OF steel stocks through
out the day. and the common sold down
TO CO. a new low record point for sew
sral years
The preferred was also weak. selling
down to l03, a loss of 5ss from yester-
day. Other stocks on the exchange
were weak in sympathy.
There was a wild rush to sell steel
at the opening of the market.
The common stock opened with the
sale of $4,000 shares and fell to 61 IL.
loss Of points. The preferred stock
fell 5Ss.
Confusion on the Floor.
TIE floor of the stock exchange was
scene of confusion. Long before
trading was begun the traders were
TANNED tightly about the post at
which the steel stocks are traded In.
Orders to sell the stock had poured in
over night from owners in every part OF
the country vino We're alarmed over the
dissolution suit. When the gong was
sounded to announce the opening OF the
market such din was made by the
shouting. struggling traders that ii was
impossible for several minutes to learn
the course of the market.
The first block of 5000 shares was one
or the largest ever recorded in steel
stocks. although 1t was exceeded twice
last month when the market was de-
moralized by the liquidation of this stock
on the part of the holders who feared
that the government was to begin suit.
Within the first fifteen minutes $500
shares were traded in.
Evidence of Support.
IL was soon evident that the stock was
receiving support. The first price Of 53is
was the low point and 1t rallied a point
At no time during the early trading did it
reach the low figure Of last month. which
was al%. Trading in the preferred stock
ard the per cent sinking fund bonds
also was very heavy. The preferred stock
after breaking 5H rallied 2 points. The
bonds opened with q block Of 100000 at
100z. a decline of H.
The general market was upset by the
excited trading In the steel securities.
tuion Pacific Reading, Lehigh Valley
and the other speculative favorites were
the heaviest losers. although declines in
few cases exceeded two points. I.iqui-
dation in these stocks. however. was
quieter, with rallies of a point OF so fire.
quent among the railroad issues.
Storm Breaks Anew.
The storm broke with renewed fury
after the first recovery in prices. the sell
Ing being on an enormous scale, and the
market became demoralized- Stocks fell
to lower prices than at the opening.
United States Steel dropped to 81. loss
OF 10 points, and new record for the
year.
Tire preferred stock fell back to lot;N.
Sales of the common stock in the hrst
hour of trading were .!0tGV shares.
Standard railway issues. such as Union
Pacific and Reading. were forced down
about :; points Industrial stocks OF all
classes were extremely weak.
The market was badly unsettled all
the morning Occasional rallies showed
that attempts were being made to sup
port prices. but each recovery served
only to invite further selling.
Big Slump in London.
LONDON. October 2I.-Dealers in the
American market assembled earlier than
usual this morning, owing to the action
or the United states government in
bringing suit for the dissolution of the
United States Steel Corporation and all
constituent or subsidiary companies.
StecI shares opened uom.nally at -, bat
soon fcli 70 -, and then TO 1il2 or 55s
points below parity.
The amount of stock changing hands,
however. was small. compared with the
bi; decline and there was not much
excitement. Erratic movements were
followed by bear covering that lifted
the quotation 10 56. at which figure
buyers were found. At IL o'clock, how
ever. the market was very unsettled. and
continental sdviceS were eagerly await
cd. No dealings In American rails had
Yet occurred Holders here were rather
frightened at the governments action.
but IN. principal offerings appear to
have been cabled overnight from Wall
street
American rails later dropped from =.
TO ~ in ~ Nmpathy With the steel stocks
hut the market hardened fractionaiiv
around noon when in the absence OF fur
ther selling steel was quoted at 5SiI. or
Ia above the lowest.
Chicago Feels the Shock.
CHICAGO. October 27--Excitemcnt in
WALL street 1as reflected today on the
Chicago Stock Exchange, industrial
shares displaying pronounced weakness
due to offerings which frightened in
vestors threw upon the market. Inter-
national Harvester tumbed ~ points.
Sears-Roehuck common "a and American
can preferred . There was urgent sell
ins of Svif,'s from 20 off 10 oS'2