The Washington herald., 1912-12-12
ny i. A. FLEMING.

There was an awful smashing of values
on Wall Street on Wednes day. At times
they simply melted, that is on Union Pa
clfc, Reading, Harvester, American To-
bacco. and Steel common. In the re-
bound the latter presented the best front
OF the leaders, although the real
strength in the rails was in Southern Pa
Cific, St Paul. Pennsylvania, Northwest
ern and high grade rails that have moth
ing to fear from the Sherman law as to
direct effect.
At the immediate opening there was
disposition to cover on the part of few
shorts and some good buying orders that
brought a slight gain y to l point IN
the first hour Of the session. In the
second hour the offerings increased. and
midway in that hour it looked as IL the
liquidation had run rampant The ticker
told the tale so fast that amounts OF
stock sold were only occasionally mem
toned.
Naturally the market was attended
with much weakness, and every drop
caught stop orders until the list was
melting away. Shorts with big prohts
closed out and took a turn on the bull
side, but were wiped out in less time
than il requires 10 tell the story.
Union Pacific was the weak spot in
the list, though the bears hammered
away at the Steel shares, and Reading;
indeed there We're few spots from which
the bears did not attempt to turn prof
its for themselves.
Union Pacific. which was high at 1921,
found its level at 153 5-S. Reading, at
l6S is, was at the top, and at the bot
tom at 162 Steel common dropped from
e5Ik to 669.: American Tobacco made a
net loss Of points, and all through the
list there were gclrerOus recessions.
During the second hour of the after
noon there were some reCOveries, prob
ably a point TO a little better in the
leaders, and then midway in the last
hour the drop Of one-half point in some
Of the leaders. nothing between" gave
evidence of another stretch of liquida-
ton This proved to be the fact, and
for ten minutes the bears had their own
way again, the market coming to bet
ter closing on shorts taking their hand
some profits for the days work.
This recovery was perhaps a more
noticeable feature in Steel common.
where the net loss was but three-fourths
of a point. Union Pacific made S-s re
covery. but was still L. off from high.
Reading recovered 21-4, with a net loss
of about points from high.
Traders, while naturally expecting
temporary recOvcries, are greatly divided
in their views. They are a unit in ac-
credIting the Sherman law with all its
SJrenEIn OF smashing power. linen
there is a faction which believes that
this decline is but what might have
been expected when the party of tariff
for revenue and trust-busting pledge was
chosen to power but was STAYED off by
the moneyed interests against the time
when they had put their own affairs in
order.
There are many fine railroad stocks
on the list that are bargains. stocks
Of corporations that are doing the bust
ness paying strict attention thereto and
not at all liable to busting in any of
their relations.
Margin calling goes meuily on. The
rate for money is down to and 41-2
per cent, but money, a factor ten days
ago, doesn't make much difference at
this time.
There is much comment anent liquida-
tiOn of labor that may come through the
condition of the great corporations and
because of continued and unceasing de-
msnds for higher wages. and more domi-
nant regulation of employment by the
employed.