The Birmingham age-herald., 1911-10-28
GENERAL EFFECT OF SUIT ISF|LED
Effect Is Lessened By the Furry of Last
 Month


 New York, October N.-United states Steel fell to 501a on the stock excnahse today, falling almost points. This was the, most striking feature the govern lnent's dissolution suit against the Unlteo States Steel corporation developed oWn- CTS of United States Steel securities in all parts of the country and in foreign lahos' alarmed at the suit, threw their noioihss upon the market, and trading In seculi- ties ran to enormous proportions.
 During the session 69000O shares or Tinted States Steel were sold. The gen eral list developed pronounced weakness on account of this movement. but there was no demoralization except in the mar ket for United States Steel itself.
 Violent as were the fluctuations the ef- feet of the suit upon the market un- doubtedly was lessened greatly by The wholesale liquidation of Steel stocks, which culminated in the upneavel of last month The market as a whole was less turbulent than during the height of last months disturbance, which was prompted by the fear that such a suit as mas been filed would be brought, or that the Steel corporation would deem it cor rect to avoid such action by voluntarily dissolving.
 x : Steel Goes Lower
 The drop in the price of United Steel itself, however, was greater than on other sessions of the previous decline, and its low price of 50 today was 19s points below the bottom of the September drop. Following last months descent the price Climbed to GEES. and today's low figure represented loss of 10 points from yes- terday's high
 London prices gave notice before the market opened here of what was to be expected. Speculation abroad had been influenced by heavy selling orders placed there over night by New York. The rush to sell was so great that the mar ket was thrown into confusion and sales at prices ranging all the way from 55 to 531hc were made at the same time. The opening was a block of 2S,000 at these figures. Prices of all the standard l, issues gave way. Before the end of the , first hour the decline was checked on strong support, but the market soon be- came weak again and prices fell lower than before. Throughout the morning prices rose and fell in feverish man ner,
 Shortly after midday United States Steel touched 5O the lowest price record ed since 1909. Declines elsewhere among the active issues ranged from ? to 5 points.
 . Both the standard railroad stocks and the industrals suffered. Determined ef- forts were made to prevent United States Steel from breaking through 50. These were successful and in the early after noon the market rose slowly.
 Trading became much quieter and by the close substantial recoveries had been made. United States Steel ended the session at 521s a net loss of 6as. The preferred closed at 103a4, a net loss of 5 points, The per cent sinking bonds closed at 100&, a loss of IF after having i sold at 1001a.
 IS doubtful whether the governments action has greatly increased the unrest which has been prevalent in Wall street for some time. It has been generally expected the suit would be brought sooner or later and the feel ing most generally expressed was one of relief that the uncertainty on this score was ended. The governments statement in it's petition that the Steel { corporations ability to earn dividends was q result of fictitious basis rest ing on unlawful competition perhaps served to accentuate alarm on the part of security holders in general. In Wall street, however, the value behind the various issues of United States Steel securities has been well known in s general way. It was pointed out, more over. that during the period of its ex- istence the corporation has been ex- pending an average of about $40,000,- coo a year for Improvements. %-a--'' -'s
 It Is estimated that nearly S450,000,- 900 has been expended in this manner, which acts as a substantial offset to the s600,000,000 of inflated value all legged by the government in the but tressing. Chairman Gary's statement is- sued after the close of the market was in essence a reiteration of views known to have been held by the heads of the corporation.
 Wall street gave it's undivided at tention to the affairs of the Steel cor poration and even the favorable Sep- tember reports of the Hartman roads received scant attention. These reports showed that these roads had effectual- ly reduced their operating expenses Although both Union Pacific and South ern Pacific reported heavy decreases in gross returns, both roads reduced ex- 'penses substantially and net earnings were larger Extreme weakness was manifested by many speculative bonos. Blocks of $100,006 to $300,000 of Amer ican Tobacco As were sold, driving them down l B to 90A with a rally to 91. The 6s were weak ened to about the same extent and remained heavy. Losses in other issues reached point or more in many cases.
 Total sales of bonds, par value, s5,- 370,000; United States bonds were un- changed on call.
 London, October 27.-Dealers in the American market assembled earlier than usual this morning owing to the action of the United States govern ment in bringing suit for the dissolu- ton of the United States Steel corpora tion and all constituents or subsidiary companies. Steel shares opened nomi- nally at 59, but soon fell to 57 and then to 541a. or 5as points below parity.
 The amount of stock changing hands, however. was small compared with the big decline, and there was not much excitement. Erratic movements were followed by bear covering that lifted the quotation to 56, at which figure buyers were found
 At II o'clock, however, the market was very unsettled and continental ad- vices were eagerly awaited. No deal i1gs in American rails had yet oc- cured. Holders here were rather frightened at the governments action, but the principal offerings appear to have been cabled over night from Wall street. t.tN.'s
 American rails later dropped from B to I F in sympathy with the steel stocks but the market hardened frac- tonally around noon, when in the ab- sence of further selling steel was quoted at 56A, or 1s4 above the lowest.
 4 Bonds . U. S. ref. 2s, registered 1oo,. II. $. ref. 2s, coupon ..... IOOiL U. 5. 3s. registered .........., 1O1N