South Bend news-times., 1915-10-05
REACTION HITS
STOCK MARKET
Brokers Hold it Natural After
Week of Advancing
Prices.

By Broadan Wall.
NEW YORK. Oct. Whether or
not il was the many warnings against
reckless speculation or the action OF
the banks in discriminating against
industrlals i'm loans TO commission
houses the stock market suffered re-
action in the late afternoon Monday
following the establishment Of several
new high records by the war stocks.
Nearly one and one-half million
shares again changed hands
Initial prices showed gains which
were increased during the forenoon,
but a reaction in the industrials due
10 proft-taking set in just before
noon At this point the railroads
were taken in hand and rose an aver
age Of a point under leadership or
Union Pacific, Southern Pacific, Great
Northern and Northern Pacific but
their strength failed to have any sus-
tanning influence on the industrials,
which continued to recede during the
afternoon.
The reaction was considered by
conservative brokers TO be natural
one after the seven sessions OF con-
tinuous advancing prices and 10 have
nical position.
Banks Take Precautions.
Wall street. with its usual foresight,
is making operations against any
sudden collapse in the present specu-
latfve wave Banks took time by the
forelock Monday and informed the
commission houses that more railways
and less industrials, particularly war
stocks were desired as collateral IN
loans. The commission houses, OF
course. would not impart this infor-
maticn to their customers but sim
1lltaneously with this notice, commits
sion house managers began persuad-
ing customers that it was time the
industriais reacted and the rails came
into their own. This naturally Te-
suited in prOfit-taking in the indus
trials and reinvestment in the rails,
with the result that the industrlals
were reactionary while the rails We're
strong The commission houses also
insist Cd on the continuance OF their
policy adopted weeks ago that mar
gins on purchases of war stocks oe
very large. With such safety cushions,
Wall street is doing much 10 mimi
mize the collapse" that Is being pre-
dicted on all sides.
Publication of a letter written by
Samuel Untermeyer decrying sense
less and reckless speculation IN the
sO-called war stocks attracted much
attention. While traders were reading
its contents. Bethlehem Steel common
of which Mr.. Untermeyer Is a sub
stantiaI holder. touched the new high
record of 399 1-2, an advance of a
1-2 points for the day. Several other
war stocks touched new tops. notably
Westinghouse Electrics, Allis-Chalm-
ers. American Locomotive, General
Electric, General Motors and L. D
Industrial Alcohol
For the first time in the memory
OF veteran brokers some trims were
refusing to accept stop loss orders
from customers. This resulted from
the refusal Of some specialists who
are 50 busy tnat they cannot keep
record OF the stop orders and partly
to the fact that the commission houses
are swamped with work. Before the
crush became so great, some houses
WOULD. upon receiving an order from
n customer, execute IL and subsequent
1v call him up and give the figure al
which the transaction was made, but
houses have not been doing this the
last few days.
Low priced copper shares were in
good demand owing to reports that a
large block of copper metal has beer
sold abroad at 10 cents a pound, f. o
b. Europe Inspiration, Ray Consoli-
dation and Miami closed with adj
vances. The latter's strength, how
ever. was largely attributed to rails
ing in the dividend from 10 cents tC
800 "A share. for the quarter.
Railroads Report Good Earnings.
Quite "a number of railroads made
favorable reports OF earnings for Au-
gust
American Agricultural Chemica
common sold at new high price. Re
ports that IL is receiving a larg,
amount of business owing 10 th'
Gripping OF the German companies by
the war are grossly exaggerated, ac
cording TO an insider The company
is doing a larger business than a yea
ago. but, owing 10 the curtailment O
supplies of potash from Germany, il
using substitutes which have SO IA
proven successful.
owing TO the huge commission bust
ness the price of stock exchange mem
berships continue to increase. Fiv
seats have been sold within the las
week. the last CLEANSING hands at sos,
GOO. an increase OF $4,000 over tn
previous sale.
Motor stocks were materially high
er The demand for Maxwell Motor
issues was stimulated by the report
that the back dividends on the frs
preferred would be refunded Will
warrants convertible into first pre-
ferred stock.
WHY'S Overland rose 9 points to
new high price
s..H-ua AH@A