The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-14
FINANCIAL NEWS
AND COMMENT
Further Marked Decline in Ca
madam Pacific Dampens
Optimism.
MARKS FEELING ABROAD
Gives Color to Report That
Gould Stocks Collapse Has
Stirred Prejudice.
MARKS FEELING ABROAD

Up to the time OF the publication Of the |
on the New Haven investigation the stock
market acted much as II did throughout
last week. The trading was light and
prices steady In the general list, with tho
various Could issues, New Haven and
ono or two other minor issues occupying
the centre OF the stage. There was. 1t is
true. a new influence of unsettling nature
at this time in the continuation OF heavy
selling of Canadian Pacific stock which
and Berlin markets. Nevertheless, there
was. as before. no definite Indication that
the severe declines in these special quar-
tiers was to extend to tho main list. There
may, therefore, be soms difference OF
opinion whether tho New Haven report
supplied the sole impulse for the s,,bsc-
quent wave OF selling or whether tho
market yielded under tho cumulative
effects OF all these matters OF adverse
nature
Ii was not so much the findings of the
New Haven report that supplied the
motive for selling as the unrestraned
severity OF the language employed
by the commission In denouncing the
management OF the New Haven road
under tho Mellen regime. drastic ar
raignmcnt of the methods of the former
management had been anticipated, but the
financial community was hardly prepared
for so bitter an attack on the principal
individuals concerned in this most un-
happy chapter OF railroad history. In
many of it's features the document was
absolutely unparalleled. The selling
movement with which the report was re-
ce.ved undoubtedly represented an attempt
by the speculative element to discount its
actual effect upon the investing public.
The Streets estimate of the immediate
stock market effect of this incident may
be inaccurate But even allowing for the
fact that the community Is already well
acquainted with the history OF that period
IL will not be denied that such con-
demnation coming from the source II does
will undoubtedly exercise n wide and far
reaching influence both here and abroad
even II not in a stock market sense,
4 perpendicular drop OF 10 points in
the New York, Westchcster ami Boston
Az per cont bonds was n dsquieting
feature that could not very well escape
attention. These bonds are guaranteed
principal and interest by the New Haven
road and the strikngly poor demand FOR
them stimulated discussion OF compllca-
tlons in the New Haven situation OF an
even more serious character than any
that have vet received general attention.
A further marked decline in Canadian
Pacific was another dscouraging Incident.
obviously IL contained plain limitations
that the financial position abroad does
not Justify any great optimism and gave
color to reports that the collapse in the
Could securities, which are heavily held
abroad, had further prejudlced American
stocks and bonds in the eyes or the Tor
eigners The renewed liquidation In cana
dian Pacific may have any number OF
causes behind It which concern the Cana
dian Pacific alone. The situation in
Vienna is said to be highly disturbed, the
after effects OF the Grenfell failure may
still exert an influence and there have been
reports Of poor crops and slow trade IN
tho Dominion. But II may also be that
the weakness OF this great international
favorite also reflects in some degree dis
appointment OF the foreign investor In the
course OF financial affairs In this country
upon which he has built great hopes.
Outside OF the securities OF Western
MARYLAND. which were again very weak
and also OF some of the southwestern
roads prominent last week, New YORK
Central attracted attention. This led 10
freouent references to the investigation OF
the Senate into the affairs OF that prop
| erty.
AS concerns the general news OF the
day with financial bearing this was
rather favorable. The grain market:
| turned weak after a miniature crop scare
had been dissipated by news OF rain lr
portions Of the bolt where dlsagreeably
dry and hot weather had been reported
| SUNDAY