New-York tribune., 1911-02-25
RATE DECISION PLAYS
SMASH WITH STOCKS
Pin Decline in Americans in
London, Followed by Demor-
allied Opening Here.
RALLY ON BAN NKERS' SUPPORT
Prices Then Recover Much OF
Early Losses, and Close Strong,
but Many Points OH
for the Day.

for the Day.
The severest declines since the panic
,ovs NJ 1907 occurred in the stock mar
,., Yesterday. a. a consequence OF the
,,,ovnected decision of the Interstate
commerce Commission, made puonc
after the close of business on THURSDAY
dencjng the applications of Western ana
Eastern railways for permission TO raise
their freight rates
overnirht selling orders. said TO aSgre-
cate around 100000 shares had been
cahled to London. where prices for
American issues fell many points. the
dealings there being heavier than on any
aov since the issuance Of president
Cleveland's Venezuelan message IN the
earlv COS. Brokers and customers came
downtown early prepared for Gay ol
excitement and possible trouble
The lowest prices Of the day. however
-, the New York stock Exchange we're
made AZ the very opening. with lew eN-
centions. and the panicky feeling WAS
ouicklv over In the first hour me Trans
.c,ione aggregated about 100000 shares.
with many fluctuations. hut the feverlsh
,rodi,, hogan TO diminish before noon,
"a il, ,be afternoon trading compare
,,.. dulness prevailed. with prices con-
Ginning their slow recovery. Total sales
uere oqs.oi7 shares, the largest for many
DAY.
several Of the active issues, among
,bano the three market leaders-Cnion
pacific steel common and Reading-had
wide openings. Union Pacic at 174A to
17rb. comparing with Thursdays clos
ing figures Of l79: Steel at 76& to 771a'
against ST AT the close on the preceding
dsv and Reading. which had closed at
15qls opening At 158 to 1874
Bisgest Drops in Great Northern.
Great Northern opened rs points
down. at 100; Northern Pacific and Mis-
souri, Pacific at points each, under the
close Of the preceding day, Atchison and
81. Paul at declines Of Az points each,
and Southern Pacific Az points down.
In all these stocks the first prices were
the lowest or within a small fraction of
the lowest The rush to sell continued
for a short time, many stop loss orders
being executed and margined accounts
wiped out, and then came a sudden check
TO the downward movement, with buying
orders pressed for execution from various
sources. representing in large degree
supporting orders from powerful bank
ing interests. who are accustomed TO
stand under the market at critical junct-
ures end whose concern over the out
come Of the freight rate situation, more
over. is rot so acute as is that of the
railway presidents.
The rally was helped by buying from
many operators who. figuring that the
local market would respond to the break
in London by breaking still more badly,
lad gone short at the opening and who,
alarmed by the speedy showing of
strength, made haste TO cover their com
mitments on the short side. The bar
gain hunters. long absent from Wall
Street. also made their appearance. and
the fractional lot buying during the
morning hours was larger than for
months
The recovery was aided in the after
noon by the buying back of stocks by
many Of the sellers of the early morn
ing. who had come TO take a more hope
ful view OF the rate situation than they
had held Al the opening; and the mar
ket closed strong. with about half of the
initial losses recovered by most Of the
issues
Days Important Net Losses.
Great Northern, for instance. which
had opened ~ points down, closed AZ
points under Thursday, and among other
net losses were 3i2 points in Union Pa
cihc 35s in Reading, 2% in United States
Steel common. 29s in Southern Pacific.
q. in Atchison, 31s i'm St. Paul. 2% in
Missouri Pacific and 3A in New York
Central
The railway cquipncn: shares. which
naturally had suffered with those of the
reads themselves. made corresponding
partial recovery later in the day. Ameri-
can Car and Foundry closing at net
decline Of "a points and American Lo-
oomotive 2is
So great was the total of selling orders
sent 10 London that in some instances
cable messages were received by the
sellers here that the orders could not be
executed on that market. According 10
some Of the arbitrage houscs, the chief
London dealers in the Yankee market"
held a meeting on Thursday night and
arranged 10 act in combination in re-
framing from buying stocks except at
low range. fixed by themselves, their
action causing tn, American sellers even
more loss than they had expected and
giving rise T. many complaints Hester-
dag.
Union Pacific. il is said, was offered at
l6Siz or lOi5 points down from Thurs
day. close. and sold as low as III; ana
Rsading was offered II points down. 1he
Lonoon market strengthened before the
end Of the trading. and was well above
its lowest 10y the closing hour. which IS
about the hour of beginning business on
the local stock Exchange.
VIEWS OF THE COMMISSION