The Washington herald., 1912-05-17
WALL STREET NEWS
Market Breaks sharply in Spite Of
Favorable Reports from
Country.
3y THOMAS Q. sHOTWELL.

New York, May 16.-In the face OF dis
tinct Improvement of conditions already
good. the stock market broke sharply
to-day. Declines Of three and more
points were seen in leading issues. In
fact the best stocks broke the worst.
The close was In the midst Of q healthy
recovery. A few new high records were
made early in the day, but most stocks
showed net losses at the end Of the ses-
sion
Grain broke badly, May wheat going
from LII 70 LIZ in Chicago. corn from
HN to TIA and oats from IS to 52A.
Cotton was heavy. Copper was stronger.
The anthracite miners proved their readi-
ness 10 return TO work as soon as neces-
sary formalities can be cleared up. Wall
Street has accepted Rooseyelt's nomina-
tion as settled.
Raid Brought Break.
The break was the result Of a bold raid
by operators who mad sold out and who
were forced to adopt heroic measures to
get line so they could participate IN the
coming advance. The big bankers had
been looking for just such bargain sale
and did nothing to stop it until thzprices
began IN the afternoon TO look irresisti-
bic. Than, there was free buying for
inside accounts In many securities. The
decline in the market being merely a
scramble for cheap stocks, II is difiicult
70 say exactly what was the exciting
cause Of the break. Every piece Of news
published was a reason for higher prices.
The raid was undoubtedly made because
the operators could not afford to wait
lest the Upward swing acquire too much
momentum TO be stopped even for a
day.
Acceptance Of Roosevelt as the nominee
is no cause for break. The new high
record by International Harvester, which
was made when other issues were tum-
bling, was evidence that he viii not
hurt Wall Street. The Roosevelt finan-
ciers are also heavily loaded up with
Amslgamated Copper, and that stock
was one of the strong features of the
day. Wall Street argued that Perkins
and Munsey would never tie up with a
bear for. President. Furthermore, il is
no longer certain that Roosevelt is not
really Wall Streets choice. One report
is that he has promised to get the Sher-
man law repealed If elected
Canadian Pacific sold at a new high
record, while at the same hour Congress
was discussing the plan to shut out of
the Panama Canal all ships owned by
American railroads in favor of ships
owned by Canadian lines. The bill in
Congress is not written in as plain words
as that. but that is its meaning. From
Germany came report that Canadian
Pacific would double its capital in order
70 pay increased dividends without re-
ducing the freight rates. The Canadian
law forbids the road paying larger divi-
oends than 10 per cent, unless rates are
reduced. The Germans seem to think |
the government would look the other |
way while the stock was doubled. As a |
matter Of fact. the company is plan
ming sharp reduction of freight rates |
about the time the Panama Canal IS |
opened, and the large issues Of stock
that VIII be necessary in the meantime
70 pay for double tracking across the
Continent will keep the dividend within
due bounds.
Steel Is Booming.
Strength Of the Copper shares was the
result Of proof OF a strong statistical |
position The foreign figures showed |
reduction in the stocks Of metal on hand |
and .afoat Of 1900 tons on May Is, as |
~, saTs1l rr-fSH.