New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
REVIEW OF THE
STOCK MARKET
Good Support Limits Fall
of Prices Following
ClafIin Failure.

Banking support Of the kind that
has come 70 the assistance OF the hold
ing concerns Of the Claiin group Of
corporations mitigated in yesterdays
market the effect of liquidation that
followed word Of the suspension of the
H. B. Clafin Company. At the open
ing securities we're down generally
considerable fraction below Wednss-
days final prices and selling pressure
In the early trading was continuous,
but the offerings were well absorbed,
and toward the end Of the first hour
the market had steadied. Around the
beginning Of the afternoon there was
a lull in the dealings and prices hard
ened a little, but in the later hours
selling was renewed, and the close was
at or near the low levels of the day.
Net losses OF points or more were
common, with the industrial list par
ticulsrly soft. The list was broad and
the days total reached over 100000
shares. The bond market was rather
neglected, those issues most inclined
20 follow the course % shares turning
reactionary.
At best, news Of the application for
receivership Of the ClaAin Company
was shock 10 the market. For gen.
erations this house had been the great
mercantile concern of its kind for this
country. With the comparative decline
of New York City as a jobbing centre
il had associated with itself retail
houses throughout the country as an
outlet for its goods, and the financial
requirements of these, il was an
nounced, had grown more than could
be met. Obligations of the company
in the form of two-name paper had
been floated among the banks in the
interior, which are prone 70 take much
smaller volume in periods Of depres-
sion like the present. This distrlbu-
ton of liabilities, while it makes the
difficulty felt over a wide area, will, 1t
is said by banking authorities, pre-
vent embarrassment Of individual hold
ers.
United Dry Goods preferred, whose
break Of 14l2 points on Wednesday
was to many the first warning Of the
difficulty of the Clafiin Company,
opened u points lower at 20, rallied
10 ~. but closed at 65, II points down
on the day. In sympathy May Depart
ment Stores made a maximum loss of
over 5 points and Woolworth Com
pany over 8 American Wooden shares
lost . points or more on small trans
actions.
In addition TO this mercantile dis
turbance other depressing news came
to the market in considerable Volume,
Railroad earnings of the Atchison,
Chicago & Northwestern, Union and
Southern Pacific for May were dis
couraging. In Southern Pacific the
loss amounted to some 100000 IL
gross and over Sl,000,0O0 IN net.
Wells Fargo reduced its semi-annual
dividend from to per cent, and
New York, Ontario & Western, fearing
unduly to reduce its surplus, passed
the customary per cent annual dis
bursement. Wells Fargo closed at par,
points down. New York, Ontario &
Western broke IL points when the
bad news was announced, Just before
the close.
Income tax payments continued their
drain on the banks cash holdings,
over Sl5,OO0,OO0 having been lost
TO the Sub-Treasury since Friday.
Time accommodation showed nrmer
tendency and call loans renewed a
trife higher at , per cent. There was
practically no market in commercial
paper. with H. B. Clahin acceptances,
for wears the standard obligation Of
that kind, eliminated.
Exchange rates were easier, demand
sterling again going below ass, and no
cold was taken at the Sub-Treasury
for export during business hours
Gold continued to accumulate IN the
great European banks. The Bank Ct
England reported an addition Of over
81 2OO. 600. the Bank Of France gained
100 600 600 francs and the Bank OF
Germany 100000 marks.