Omaha daily bee., 1911-10-28
SHARP SLUMP In STEEL STOCK
Wild Scenes Follow Opening OF Mar
ket in New York.
RAILROAD ISSUES ALSO LOWER
Union Pacific, Reading ana other
standard Roads Fail Three
POInts--AmerIcRns Lower

NEW YORK, oct. 27.-steel shares
slumped badly on the stock exchange to-
day as a result Of the federal suit to
dissolve the "billion- dollar" steel COM
bine There was an outpour OF steel
stocks Throughout the day and the COM
mon sold to so, u new low record point
for several years. The preferred was also
weak selling down TO 1O3 loss OF 67s
from yesterday. Other stocks were weak
IN sympathy.
United States Steel touched so, a loss
OF slA points, before the selling became
less heavy. During the afternoon tho
market recovered slowly. United states
Steel rallied 2h points and the other ac
tive stocks from 1 to points.
The floor o. the Stock exchange was a
scene of confusion. Long before trading
was begun the traders were Jammed
about the pit at which Steel stocks are
traded in. orders to sell the stocks had
poured in over night from owners in
every part of the country who were
alarmed by the dissolution suit When
the gong was sounded to announce the
opening OF the market such a din was
made by the shouting, struggling traders
that It was impossible for several minutes
to learn the course of the market.
Tho first block OF 5000 shares was
one Of the largest ever recorded in Steel
stocks, although It was exceeded twice
last month when the market was demor-
allied by liquidation of this stock on the
part OF holders who feared that the gov
ernment was going 10 begin suit Within
the first fifteen minutes 97,5OO shares
were traded In.
stock IL Supported.
IT was soon evident that the stock was
receiving support. The first price of 53lk
was the low point and It rallied a point
At no time during the early trading did
It reach the low figure Of last month,
which was 5l&. Trading in the preferred
stock and the per cent sinking fund
bonds also was very heavy
The preferred stock, after breaking 5N,
rallied points. The bonds opened with
block OF 100000 at l0O9t, decline Of ll5
The general market was upset by the
excited trading IN the steel securities,
The stoIm broke with renewed fury
after the fIrs. recovery In prices, the sell
ing being on an enormous scale and the
market became demorallzed.
Stocks fell 10 lower prices than at the
opening United States Steel dropped TO
So, loss OF 7h points and a new low
record for the stock. The preferred stock
.ell back TO lO3A,
Sales Of the common stock in the first
hour Of trading were $4,000 shares. Stan
dard railway Issues, such as Union Pa
cific and Reading, were forced down
about points. Industrial stocks Of all
classes were extremely weak.
All Americans Lower Abroad.
LONDON, oct. H-Dealers In the
American market assembled earlier than
usual this morning owing to the action
of the United states government In bring
ing suit for tho dissolution OF the United
States steel corporation and al constituent
or subsidiary companies. steel shares
opened nominaliy at 50. but soon fell to
| J7, and then TO 54h.
! The amount OF stock changing hands
| however was small, compared with the
/ big decline ana there was not much ex
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