The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-17
FINANCIAL NEWS
And COMMENT
Stock Market Weakens on Post
ponement Of Railroad
Rate Decision.
REACTIONARY DAY ABROAD
100000 More Gold Engaged
for Export-Big Bank
to Cut Capital.
DAY ABROAD


general influences at tho outset Of the
new week to produce an adverse effect
on the stool, markets, domestic and for
eign, and the Wall street share list closed
yesterday at more or less common losses
Of all the recovery made toward the end
Of last week. There have been several
suggestions lately I'm the aspects Of the
security markets both at home and abroad
that the impulses which were 10 strong
in January In favor Of active advance had
been materially exhausted with the excep-
tion Of tho considerations supplied by
cheap money. and about tho significance
Of that varying views have begun to
prevail. From tho fact that reaction was
the order Of tho day in London as we'll
that the particular developments which at
tracted most attention here were not
wholly responsible for the price movement
However. local notice was chiefly en-
gagged with the announcement made be-
fore the opening Of the market that the
Interstate Commerce Commission had
postponed from March until September
tho rate advances involved In the appli-
cation of the Eastern railroads for per-
mission to make an average increase OF
per cent. in their freight charges. This
was undoubtedly tho direct incentive to
the active selling movement which
promptly took place. although the swift
effectiveness Of the selling was probably
related to the more general conditions in
volved In the position Of stocks Lon
don was a prominent participant In the
early selling movement. both on account
Of the reactionary disposition abroad and
for the saSno reasons which prompted
local sales
In the first hour and a half fully half
Of the days total business was trans
acted, and In that time quoted values
accomplished In most cases practically all
their decline for the day. Subsequently
there was a good deal Of dulness. but
while pressure was lacking the more
pronounced feature OF the market was
its failure to rally The relapse was gen.
eral throughout tho list OF leading stand
ard shares and Included industrials as
we'll as rails Mexican Petroleum INDUCED
IN q nt OF weakness on Its own ac-
count. Canadian Pacific was affected by
the foreign tendencies toward recession
Strong spots were supplied by special
ties. notably by Western Union and Ameri-
can Telephone. concerning which 1t became
known that q banking syndicate was in
process Of formation to underwrite the
offering Of American Telephone holdings
OF Western Union for subscription by
Western Union shareholders. and accord
ing to rumor the attractiveness OF the
offer was to be enhanced by tho prospect
of an increase In tho dividend. The mar
ket closed heavy on the whole with most
OF the customary leaders ruling around
the low prices of the session.
1t Is doubtful " 20 much OF reac-
| tionary response would have been made
to the days budget Of marketwise news
| II there had not been some display Of
reactionary symptoms lately. although
| these were manifested more In sentiment
and In talk than In actual pr.ce changes.
! Nevertheless the markets position became
| a matter of more interesting conjecture.
because Of the way In which it pro-
ceeded to reflect the Interstate Commerce
Commissions further postponement of de-
. cision in the Eastern rate case. OF course
! the order suspending rate advances was
formality. but II was corroborative OF
Indications In the last two or three weeks
! that the bright January hopes OF an early
ruling favorable to the railroads had been
dimmed. The same statement may
| be made OF other matters which were SC
! influential a month ago. but tho waning
| of optimistic sentiment about railroad
prospects presents difficulty with which
| the stock market IL peculiarly concerned
II may turn out that the work OF tho
| commission in the direction OF changinl
railroad practices with reference to in
dustrial short line allowances and charge,
| will furnish a very substantial compensa
ton to the railroads as offsets to tn,
delay Of decision on the question OF gen
eral rate increases. but at the momen
the situation has to be reckoned with b,
Wall Street In terms OF disappointed ex
pectations. A natural corollary Is thu
effect which this disappointment may hav,
on tho outlook for sustained improvement
| In the steel trade, but Of all this II ma.
be said that February IL not the montl
to determine the trend Of business vol
umes or Of quoted values. Tho announce
ment that tho Carnegie Steel Compan!
had posted wage reductions and the pro
gramme OF the Federal Industrial rela
lions commission for an investigation o
the problem Of unemployed labor mad
some contribution to the reac;ionary proc
esses Of Wall Street.
II Foreign advices attributed the renewc,
heaviness OF tho London stock marke
to the disturbing phases OF British poll
tics and to the signs that new securit,
promotion WAS being overdone. The Soutl
African loan had to be taken largely b!
the underwriters, and discounts hardene,
perceptibly In response to evidence tina
borrowing had been proceeding too rap
idly and to the continual inquiry for goi
which Is converging at London. TIL
outcome ofs foreign financial happening
was a sharp rally in foreign exchang
} here, demand sterling recovering to ass y
There was a barely perceptible hardening
OF local money rates, the call accommo
dalton renewing at per cent. Anothe
! engagement OF 100000 gold for ex
port to France was made, bringing up tn
total so far this year TO $l2.000.000 an
showing that the Bank OF France was sti
engaged In Strengthening its reserve hold
, ings out OF the American gold stock a
I long US the transfer of the metal coul
he made without disturbance,
. Tho proposition Of the Fourth Nations
, Bank to reduce Its capital from $4,000. 90
to s3.0O0.O0o came az a surprise to
, large part Of the financial community.
, was the first token so FAR supplied OF on
result which IL likely to he produced h
! the passage Of the Federal reserve act