The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-16
FINANCIAL NEWS
AND COMMENT
stock Market Much Unsettled
by Heavy Breaks in a
Few Issues.
RALLIES TOWARD CLOSE
New Haven and New York Cen
trail Leaders on Decline
Other Features.

sI'Sdteu u SUFFICIENT total 10 make the
course OF prices significant. The deal
ings In comparison with the average mar
kcts of recent months were on an active
scale. and most of this activity repre-
scented concentrated selling IN a few is
sues. II would be difficult to assign an
adequate set OF causes for the movement
OF the share list. A variety of influences
undoubtedly combined to continue the de-
cline which began a week ago In some
securities which were In a weak position
The large majority Of corporate shares
have been but little affected by the recent
topping over OF unsound structures, and
II may turn out that what has been go
Ing ON In the last few weeks has been n
wholly desirable and very necessary read
justment OF particular prices to the con-
sequent advantage OF the whole price
level
That there was further liquidation YES
terday was evident. but for the most part
1t seemed to be liquidation which was
forced by speculative .bearish effort in
telligently directed toward weak spots in
the list at an opportune moment when
there was large amount OF adverse news
calculated to develop weaknesses. There
was foreign selling again because. al
though the markets abroad were not OBJ
Niously disturbed on their own account
or ON ours. Europe Is reported to have
formed a new set OF Impressions unfavor-
able to American values as "A result of the
scandal constituted by the spectacular
breakdown OF some OF our corporate en-
terprises. 1t is a question IL the att 70
tude now attributed to Europe is likely to
make for an Increase OF depression here.
Speculative Europe was long ago sold
out OF American securities, and the pre-
vailing soundness of American values COM
mcnds Itself Overwhelmingly To the Eu-
ropean financial judgment against the I'M
wholesome features Of our material prog
ress winch are now receiving exaggerated
attention.
Advces were freely circulated before
the Wall Street opening to sell stocks
which later broke heavily and there was
thus provided some clue to the spccula-
tive character of the pressure to which
the market was subjected. II was not
until around and after midsess,on that
stocks generally gave way to any APP
probable extent, although one or two
issues fell violently in the forenoon. not
ably New Haven. In the early after
noon there was a more or less common
slump led 10y New Haven and New York
Central which lasted until the final hour
Then a rally set In which became vigor-
Gus in tho late dealings and the tone at
the close was firm. TIL afternoon slump
had all the appearance OF an energetic
raid and some ENCOURAGEMENT to con-
structve ideas about values was fur
nished by the rebound which succeeded It,
Throughout the day there was good
deal Of gratifying general resistance to
pressure. although the cases OF weak
ness Were numerous Missouri Pacific and
Chesapeake and ohio acted az though
they had been oversold although the
at,,
The Rock Island stocks and bonds went
lower and the Wall street air was filled
with talk OF rcceivershlps for the Mis-
souri, Pacific and Rock Island properties
as well as for the New Haven. The for
nation OF protective committees for the
Missouri Pacific securities, including a
strong committee TO care for the inter-
ests Of the shareholders. pointed clearly
at the carly undertaking OF reorganiZa-
ton measures. but it does not appear
that financial readiustment OF any OF
these properties can be accomplished
without resort to the courts.
The desperately complicated posture Of
New Haven affairs accounted for the
course of the stock and the convertible
bonds and lent a painful degree Of In
,erest to the important meeting Of the
company's directors to-day. The financial
community was altogether at a loss to
conjecture what policy the New Haven
directors could adopt which would best
safeguard the shareholders when there
IL 90 much ruthless political purpose TO
make capital out OF the New Haven trag-
edy. New York Central was made the
target OF attack on account OF a sympa-
thetic connection with the New Haven
situation and also because the New York
Central system has Incurred political ami
mosities The renewed relapse OF Cana
dian Pacific resulted from foreign SELL
ing to the accompaniment OF rumors
about strained conditions in the Dom'n-
ion.
baltimore and Ohio fell on the pros
p.ctive Increase of the market supply
OF the stock now that the distribution
~ the Union Pacific extra dividend
seems assured by the Court or Appeals
decision. BY the same token Union Pa
V.ific WIS helped, and the underlying
,irmness of this stock and or United
states Steel. Southern Pacific and few
other standard issues was factor OF
general market support.
Some part was played In the days
operations by revival OF gloomy APP
prehenslons OF the nature Of the decision
which the Interstate Commerce Commits
sion has yet 10 render in the Eastern
rate case This being so II Is pertinent
20 observe that the decision Is likely Ia
find quoted values pretty well prepared
for disappointment The chances OF bia
railroad strike in the West were not re-
garded as good enough 10 warrant fears
on account of 1t.
Wau street notice was so closely en-
gagged with matters involving the fate
of a few important corporations that
other marketwise news was but little re-
garded. Nevertheless II was noticed that
foreign exchange continued 20 sag az the
domestic money market maintained It's
firm tone. The disorganizatlon of the
commercial paper market may illuminate
the request from interior banks to the
Treasury Department to make large de-
posts OF public funds ostensbly for cron
moving purposes. The state of the com
mercial paper market is Of course the
direct outcome OF the Clahin failure.
which is now being attended with so
many unpleasant revelations as to tho
process of manufacturing the famous
reccivables that found 40 ready sale