The Washington herald., 1914-07-14
STOCK MARKET
WEAK AT CLOSE
Prices Collapse Violently,
with Scattered Rallies
by Shorts.
RATE DECISION FEARED
Western Maryland R. R.. Breaking to
New Low Figure. Creates
STIR in Street.

New York, July Il Prices collapsed
violently in today's stock market. Thi
closing was weak with rallies here anc
there on short coverings. Liquidation
apparently is still unfinished, support II
lacking and the outlook disquieting.
There 70 a strong opinion current or
the street that the rate decision on ths
question Of the per cent freight rate
advance VIII be unfavorable to the rail-
roads, and that fore-knowiedge OF this
formed the basis Of the present selling
movement,
At the opening the market was fairly
steady,-with notable strength IN Union
Pacific, Southern Pacific and Steel COM
mon. Canadian Pacific sold at $50, when
Harry Content appeared in the crowd
with a selling order that broke the price
10 ISs at which figure he offered 500
shares. Temporary support appeared In
buying orders from London, but the sell
ing continued and Harris, Winthrop q
Co. added to the pressure. The price
broke TO 1S5 SIS, a new low figure and
some eighty points below the high rec
ord OF 1913.
General Scattered Selling.
Scattered selling appeared in other
stocks New York Central fell nearly
three points. Without the privilege OF
increasing freight rates the outlook for
the stockholders in this property is in
deed gloomy.
Recent heavy selling of New Haven
is now credited to interests in possession
of the drastic report Of the Interstate
Commerce Commission. one OF the sever
est arraignments ever made against a
corporation. A covering movement fol-
lowed in the stock and, although the
previous low figure of IS 1-2 was touched,
there was a rally to 81. The effect Of
this document upon the directors Of other
railroads and upon the minds OF the in
Vesting public may soon be forgotten.
Reading fell more than two points, and
Lehigh Valley declined two and one-half
Specialties were weak, Sears-Roebuck,
American Tobacco and Woolworth losing
from two to three points.
Rumors that the courts might hand
down a decision tomorrow authorizing
the Union Pacifics Baltimore and Ohio
holdings, started a selling movement in
the latter stock that broke the price
nearly two points
Short selling has apparently outrun
liquidation in Missouri Pacific. The stock
was steady all day, closing with a gain.
Denver common fell below s. and West
ern Maryland dropped from 1914 to
13 81 Not so lopg ago stockholders paid
a $40 assessment on these shares.
Steel common grew weak in the after
noon, losing points from the early
prices. Copper stocks held fairly well,
Amalgamated losing only 1-2.
ArbitraEe Leaders Inactive.
Aside from the buying in Canadian Pa
cifc little business was transacted by
the arbitrage dealers. Heavy selling or
ders, however, appeared from the conti-
nent in the purely investment stocks, in
GLIDING Louisville and Nashville, North
ern Pacific, Great Northern preferred, and
Norfolk and Western
Bonds were heavy. New York, West
Chester and Boston 31-2, although guar
anteed by the New Haven, lost points.
Western Maryland Is fell more than 4
Rock Island issues and Denver and Rio
Grande IS were heavy.
If the Interstate Commerce Commission
decides not to permit railroads to in
crease the selling price Of trausporta-
ton. the public will not supply funds for
equipment, new lines or organization.
Dividends will be either reduced or
passed.