South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-07-18
BROKERS AWAIT
RATE DECISION
Values Decline in Anticipation
of Interstate Commerce
Commissions Report in the
Freight Toll Case.
BY BROADAN WALL.


NEW YORK, July 1s.-Today's
stock market was erratic. Many OF
the low priced stocks suffered sharp
declines to new low levels but strength
featured the standard issues. Wall
street expects a rate decision Saturday.
Top prices almost invariably dis
count coming events and the recent
decline in values on the stock ex-
change reflects expectations concern
ing the forthcoming report from the
interstate commerce commission on
the eastern freight rate case.
AS exclusively announced in this col
umn last Monday, selling that began
a week ago was in anticipation of this
news. During the last three or four
years railroads that could no longer
sell common or preferred shares or
induce investors TO take new bonds.
soll short term obligations in the
hope that the railroads would be per
mitred to earn a living wage and that
these obligations could in time be
exchanged for a fixed form of indebt-
edness. The doom of the short term
note as an aid to roads would appear
to be at hand.
Foreign investors who freely ad-
vanced funds to our railroads during
the period of early construction and
later developments, now show their
disgust by returning securities of the
railroads at panic prices. NJ. K. and
II. hangs on the edge of a receivership
and at the present prices for Denver
and Rio Grande securities no reorgan-
ization seems possible except under
the supervision of the courts. And
Erie, hopelessly behind. has no +. III.
Hartman today TO come to its rescue.
LONDON was idle, but the continent
sold the low priced stocks heavily.
Erie issues dropped from l to 3
points and VI. X. and T. common sold
at and the preferred at p 1-2. Den
Yer issues were heavy. the preferred
breaking TO sc "a. Union Pacific war
rants for the extra division were ad-
mitted on the stock exchange and
heavy sales occurred against the rights
in Baltimore and Ohio common and
preferred, the former dropping to S3
3-S and the latter to IS Is. c., c., Q.
and st. L. lost three points on a single
transaction. New Haven closed un-
changed and the stock may be expect
ed TO hold steady around prevailing
figures. Support was noted in New
York Central and the price was firm.
Efforts were made to hamper Steel
common, but good support developed
around SO 1-2. Pennsylvania and
Reading were both under pressure for
foreign account. There is a fair in
vestment demand for Pennsylvania
below 10.
Bonds were generally firmer; New
Haven convertibles going to 103. New
York, West Chester and Boston -2s
gained point and Rock Island deben-
ture IS made a smart recovery. Atch-
ison cOnvertibles were heavy.
Wall street expects that a covering
movement will follow the announce
ment of a rate decision. This rally
however, is not expected to mark
permanent turn for the better prices
for no Improvement is anticipated
until foreign selling ceases or dOmes-
tic demand absOrbs the floating sup
ply.
Baltimore and Ohio preferred at 10
is an attractive investment which
should be enhanced when the common
cuts or stops its dividend. Denver pre-
ferred at 10 offers speculative posi-
bilities.