The Washington herald., 1914-07-30
MARKET MAKES
Slight RECOVERY
Favorable War News Causes
Gain in Leading Issues
in New York.
c. P. UP FOUR POINTS
Situation More Favorable During Day
Characterized by Violent Fluc-
tuations and Nervousness.
c. P. UP FOUR POINTS
By w. STEAI.EY.

new York STOCK market yesterday TAI
He'd and there was a gain in leading
issues. The day. however, was marked
by violent fluctuations.
Canadian Pacific. the premier inter-
national railway stock. was again the
storm center. The stock closing at
1S rs made a gain Of four points over
Tuesday. During the day 1t went as
low as I6O and as high as 1855 L.
The stock has commanded for years
first place in the affections Of European
investors although Canadian property.
It has been sold recklessly and prob
ably 5000 shares have changed hands
in the last two days. It Is dihicult TO
impairment of its property through war
in Europe, but, of course, the same may
be said of other American issues.
Copper, Great Northern. and Chesapeake
and Ohio closed lower than Tuesday. Cop
per's close was IS Ia nearly a point on
Tuesdays price. During the day it was as
low as IS 81 Great Northern went to
113, a loss of five points, but closed at
III "a Chesapeake and Ohio went TO q,
but colsed rs points up.
Steel's close, Sc S-4, was a point over
Tuesday. A low of 81 was touched by
the leader. Union, Baltimore and Ohio,
and Reading were up a point. Texas Oil
went to us during the early trading, but
closed at Is Ia
There were heavy overnight declines all
through the list. being caused apparently
by urgent selling out Of stocks where
margin requirements sent out Tuesday
had not been met. The Coppers were
amongst the weakest issues on the
board, Abalgamated and Utah losing
about three points on first sale, but de-
clines of from two to three points In
active issues like Union and Reading
were quite common, while Steel lost al
most as much. Canadian Pacific, on the
other hand, which suffered more than
any other stock Tuesday, held frm
around Tuesdays closing level.
There was good support at the low
level rendered throughout the list and
before the end of the first hour a better
tone showed itself. In the second hour
prices rallied sharply, all of the early
losses being made up and in many cases
stocks sold well above last nights clos
ing, Canadian Pacific again being promi-
nent in the rally.
A great deal Of nervousness and fever |
ishness prevailed throughout the trad
ing, but in view OF the fact that New
York was practically the only important |
freq open market for securities It may |
be said that 1t gave a fairly good ac-
count Of itself. Transactions were again |
on an enormous scale, sales reaching |
$1,000 |
On the constructive side Of the market |
it may be stated that the farmers are
getting high prices for grain and live
stock and the railroads are very busy.
The Chicago and Northwestern RailreAd
broke all records for the month OF June
in gross earnings which exceeded its
phenomenal showing last year by $s1,767,
and this is regarded as the typical grang-
er road of the country. That shows how |
the best part of the grain States Is
thriving better than any other evidence
that can be offered.
The quarterly report Of the United
States Steel Corporation showed net earn
ings of 81, 900 in excess of the previous
quarter and far ahead Of estimates made |
in Wall Street. 1t did not earn its COM |
mon dividend, but the volume of its out |
put was gratifying and prices are now |
higher. The bears have not reduced their |
commitments in spite Of all the proit |
taking and the market is still techni- |
cally strong.
Monday was much firmer and all fixed |
term rates were 4 per cent. or higher. |
but the assurance that the Federal Treas
ury will finance the crop movement kept /
down Stion in long term loans.
On July ), a little more than a week
after the a. sassination of the Austrian
archduke, a declining movement in the
market began, and only on three or four
days have thenk been net rallies since
that time Europe was a heavy seller.
and the probability is that the declining
movement represented the views OF the
best-informed rterests regarding the
drift Of affairs the Near East.
When the declining movement started.
sentiment in New York was bullish; for
New York knew little Of what was pass
]
were bought courageously, in the belief
that following certain local occurrences,
an upward movement of substantial pro-
portions would set in. In the past few
days, however. the sentiment among
traders has become bearish. and stocks
have been sold in quantity by people
who had bought them higher up, and in
some cases by Spectators who did not
own what they sold.
The result has been the formation Of
a better technical position; but of course,
a strong technical position would not
suffice to hold the market in the event Of
a big European war, and panicky hQui-
dation Of American securities by foreign
holders. It Is conceivable, however, that
there should be such conflict.
Local stock Market.
Improved trading characterized the
Washington Stock Exchange yesterday.
Bond sales amounted to 5000 while
IT6 shares Of stock were sold.
Five 1900 Potomac Electric Consoli-
dated Is brought 100; one 81. 900 Railway !,
81 1-2; one $1,000 Potomac Electric Light
5, los, and two $500 fractions. 107.
In the stock list the principal trading
was in Washington Gas. One hundred
shares brought 76 and twenty-five shares,
Is.
Ten shares Of Washington Loan ami
Trust brought go and sixteen shares Of
Mergenthaler, Z5 1-4a215 1-2.
n. & o. -StockhoIders Doubted. ID
with the Union Pacific distributing its
Baltimore and Ohio holdings to its own
stockholders, 36 per cent of the Balti-
more and Ohio's $50, 10000 preferred and
IS per cent of Its 52000,000 common
stock is changing ownership. Baltimore1
and Ohio's stockholders recently num-
bered 1900.
1t is expected by the Baltimore and
Ohio. management that the Union Pa
cifc distribution will practically double
the number of Baltimore and Ohio own ]
ers. The stock will thus attain a wider J
distribution than at any previous time .
In the company history.
Apparently some Of the American stock ,
holders Of the Baltimore and Ohio ar