The Washington herald., 1914-07-16
RAILWAY STOCKS
BREAK HEAVILY
N. H. Crumples to 1884
Lowest Ever Recorded.
B. & 6. Slumps.
BUYING POWER IS POOR
New York Central Shares Drop from
6S to SO So, the Lowest in
Twenty-Five Years.
BUYING POWER IS POOR

New York July 15.-Prices fiuctuated
violently in today's stock market ana
several issues touched new low levels
Strength in Union Pacific was overoai-
aneed by heavy selling IN New haven;
New York Central, and Baltimore ana
Ohio. Liquidation was pronounced ana
short selling aggressive The buying
power Of the market was poor ana
rally at the close was due entirely 10
short covering.
Efforts TO sell Baltimore and Ohio m
London before our opening broke the
price there points. and the Englsn re-
fused to take stock. The shares were
heavy here, dropping to 81. the lowest
price in six years. Readers OF this coll
umn have had repeated warnings that
selling would follow the distribution of
Union Pacific holdings The recent decla-
ration Of a regular dividend. despite de-
creased earnings, did not fool the public
and a further decline can be expected
New Pork Central Breaks.
An attempt to market several thous-
and shares OF New York Cntral broke
the price from IS to 50 SIS, the lowest
point touched In twenty-five years
Should the Interstate Commerce Com
mission decide to investigate this prop
erty, and IL It is a criminal offense to
pay unearned dividends. there may be a
startling expose Of frenZied finance to
shock that class Of investors that never
questions a property so long as dividends
are received regularly.
New Haven came to the market in
blocks and the price crumpled to ~ 81
the lowest ever recorded. Traders ham
mered wherever possible. Pennsylvania,
a large holder Of New Haven, dropped
from I12 to below 110, and c. c. St
L. lost nearly points on the sale Of 100
shares. Canadian Pacific fell points
and Reading was sold for foreign account
from abov 1S3 TO l6l.
Just at the point when complete de-
moralization Of the market was threat
ened selling orders were cancelled and
the market steadied. United Dry Goods
lost eight points. Recent disclosures lay
bare a method of finance in mercantile
circles quite equal to New Haven Jug
glery or the fancy holding companies.
erected on the Rock Island system. Any
reconstruction Of the United Dry Goods
Company would appear impossible upon
such wreckage.
Union Pacific directors will meet to-
morrow and may authorize the extra
distribution already voted. This news
was expected to have been helpful TO
public sentiment but 1t fell at an in
opportune time and has only acted TO
temporarily check declining market
steel Common Firm
News from the steel trade continues
optimistic and Steel common was firm.
By comparison, howyer. the stock does
not look cheap and selling may break
out at any moment.
The Loondon market for American Sc
curities is too small and narrow to be
worth mentioning. Selling orders came
direct from investors, and the sales to-
day totaled about 5000 shares.
Bond brokers report poor undertone
in their market with practically no de-
mand at all for the semi-speculattve is
sues Rock Island collateral Is fell to
new low figure of "a IS. and New York.
West Chester and Boston Alps dropped
from IS to *. Missouri Pacific issues
were heavy and in limited market. New
Haven convertibles sold at los, 20 and
1O2. 1t would be impossible apparently
TO sell any quantity Of these bonds any
where current figures.
Wall Street has gone over TO the be-
lief that the so-called freight rate in
crease will prove a disappointment TO
every one. Bankers are showing tn ut
most conservatism regarding securities,
and thre is little encouragement TO begin
the purchase of stocks on the idea that
the bottom has been reached.