The Washington herald., 1914-01-30
Foreign MARTS
SHOW BUOYANCY
Lower London and Paris Bank
Rates Expected to Slim
ulate Our Trade.
STOCKS A BIT HEAVY
Copper Stocks Hold Their Own.
Union Pacific Strong-The
Local Markets.

Yesterdays New York market was
heavy and in spots weak. Stop losses in
the Standard issues were uncovered that
brought back to market stocks which had
found a temporary lodgment with SEMI
professional public.
With a reduction of / per cent in the
English bank rate and a drop of IL per
cent in the French. foreign markets
showed a buoyancy reflected by an ad-
vance in consols to 7614, the highest
point touched since 1911.
Early prices in London were nearly a
point above our close. and foreign houses
were heavy buyers of stocks, taking some
10000 shares. The fact that our market
was not more responsive to the improve
some bankers.
Senseless rumors spread by servants,
brought a run on one Of the strongest
saving institutions in New York, while
there was not the slightest fear in bank
ing circles that all demand Of depositors
would be promptly met. The incident was
Used to depress prices.
Pressed Steel Car directors placed the
common stock on 3 per cent basis. In
view of the large earnings, the heavy
accumulation of cash and the excellent
outlook for the present year, this action
was considered conservative.
A slump in RumeIy.
Rumely issues slumped badly. the pre-
ferred losing s SIS; the common, L..
There is little announcement for the
stockholders in this company.
Union Pacific was strong. about l6l.
Southern Pacific slumped badly, dropping
from sS is to 96 1-2. London brokers bid
the price up to 81 at the close.
Copper stocks failed to decline with the
rest of the list: Anaconda and Utah
gained fractionally.
Oil stocks were heavy. California Pc
troleum losing two points and Mexican
Petroleum 3-4. New York Central slid
of easily and St. Paul dropped more than
a point. Wabash preferred fell off two
on the announcement that the reorganiza-
tion plan would soon be made public.
Although the market ignored the para
mount news of the day, the reduction in
the French bank rate and the lowering of
the English rate. it will undoubtedly
stimulate international confidence. which
should be reflected by a renewal of the
advance in our markets.
The situation in New York has been
strengthened by the stepping out of small
bulls and the opening of a vulnerable
short account that is good feature in a
healthy market. Easy money. the prime !
requisite of speculation. seems assured.
Local stock Market.
OF
change yesterday showed little change
from Tuesday. Bonds sold to the extent
of $4,000. Twelve thousand dollars in
four lots of Washington Railway and
Electric Is was the feature. Seven thou |
sand dollars of Potomac Consolidated IS |
sold at 100.
Ninety shares of Washington Railway
and Electric common sold at 30. Thirty |
nine shares of the preferred went at the |
same price. Ten shares Of Capital Trac- |
ton brought 112 IS, thirty-one shares of
Washington Gas. IS l-Sa4S IA: fifteen |
shares of Mergenthaler, rs.
President Rca's Statement.
Samuel Rea, president of the Pennsyl- |
Nania Railroad Company, yesterday gave
out statement relative to the decision
of the Interstate Commerce Commission
on secret rebates
Mr.. Rea points out that certain news
paper reports of the decision were gar
bled In other words the entire situation
was called to the attention of the Inter-
state Commerce Commission by the rail-
roads in an honest effort to learn what
course they should pursue.
The public, however. is led TO believe
that the commission was carrying on an
active prosecution of the railroads. 1t
is a glaring example of what the rail-
roads frequently have to contend against.
ME- Red statement Is as iOllOWS.
1T should be clearly understood by
the public that the decision of the Inter-
state Commerce Commission published
today concerning allowances to short
lines of railroad serving industries, does
not contain any suggestion that the
practices detailed therein constituted
secret rebates.
The rates covering the allowances
by the railroads to these short industrial
1irae al Lei
with the Interstate Commerce Commits
sion. and were and are, therefore. a mat
ter of public record.
Statement by the Commission.
THE commission itself. in the full
opinion, makes this statement:
1t is proper to say that the whole
matter was voluntarily brought TO our
by certain of these industries
and the line railways which serve them.
The demands of plant railways for
larger allowances the increasing num-
Der of industries that were Incorporating
railroad companies to take over the
operation of their plant tracks and loco
motives with a view to demanding al
lowances, and the growing volume of
complaint against the determinations
arising out of these relations between
the line carriers and the industries so ,
favored. together with certain formal {
ana informal ruilngs by the commission I
in other cases, had combined to raise a
doubt on the part of the carriers and the
industries as to the legality of these al
lowances and free service. Y
The entire situation was laid before
the commission by the railroads and in
dustries involved three years ago, no
method of solving the peculiarly compli- J
Gated questions involved having been :
worked out by the carriers and the in :
dustries. who had for many years prev i
lously recognized that a more definite
and systematic treatment of the whole
problem was necessary
In the briefs filed on this subject on
behalf of the Pennsylvania, the New
York Central. the Baltimore and Ohio, ,
and the Erie Railroad systems, the fol- +,
lowing suggestion was made by the J
railroads themselves: q
The payment OF any allowance for
the performance OF this service in
svitably creates suspicion, gives rise to
complaints, and the only way to effect
Ially deal with the problem is to abol-
sh all allowances for the performance
'f this service either by the industry it.
'ef. or the industrial railroad
There was no secrecy about any phase | i