The sun., 1915-10-06

OF the Stock Exchange is the outward
evidence of quiet Investigation that Is
now set In motion to ascertain which
firms are encouraging wild speculation
and discipline them.
All last week, and particularly at the
end. bankers refused to recognize the in
fiated values Of stocks that had adj
vanced with astonishing bounds. They
refused to loan on more than SO per cent.
Of the market value of most Of the sud
denly advancing industrials. They did
not discriminate against indust rails Ms
such. but did against the excessively
high prices OF the popular favorites.
When stock Exchange houses would go
to their banks loaded down with nothing
but industrials of high price they found
that they could not get the money they
needed They scnrried around for in
hustrial stock loan money from other
brokers and found II hard to borrow. SO
they turned TO their customers. Many
who were lightly margined were forced
to sell out.
The wide open break OF some of the
industrials yesterday was the result
Helped out by the Official statement OF
the American Car and Foundry Com
pany that its war orders were small In
comparison with rumors Of them. the
forced selling drove prices down in quick
order. Shortly after l o'clock the break
came. Baldwin Locomotive was the
leader From about 12: it dropped with
out a halt to lie. Car and Foundry lost
Fix points from its high Of the day.
Colorado Fuel and Iron, Crucibe Steel.
Lackawanna Steel, New York Air Brake.
sheffield and Westinghouse. which
have had big advances In the last week,
! were sold down with ease.
bucket shops want slump. d.
There were evidences also that the
bucket shops were doing their best to
accelerate the break by added selling.
In the midst OF the selling Bethlehem
Steel went to a new high mark by cross
ing 400 TO 400ta.
The day, with trading in a million
| and quarter shares, was not as busy
! as the recent million share days. though
| the afternoon session, In which the heavy
decline took place. was at high speed.
The tremendous odd lot business
less than one hundred share lots
caused odd lot dealers TO increase their
| commissions on these trades. 1t Is
estimated that from 100000 to 100000
shares In odd lots have been done each
day. a good deal OF which has not ap-
peared In the total sales
The odd lot business requires big
| office force Of clerks. 1t has been neces-
sary TO add to these staffs.
The commission was boosted to "a
on purchases OF odd lots by customers
| instead of the usual y. ON sales the
/ commission OF y will be continued AS
| the odd lot buyer always has to pay -
| above the last quotation price on any
stock he buys, this advance IN commits
sions means that the odd lot trader
4 will now have to pay ~ in commissions
I for every full transaction. With
stamps this means about 9. charge &c
J a purchaser.
George r. Mellick OF Carlisle. Mel.
lick Il Co.. one OF the largest odd LOT
dealers, justified the advance yesterday y
on the ground that there was 40 per
cent. increase in Office expense ant
I volume OF work
! THE action Of the dealers" he said
may lead to curtailment OF some OF
the speculative odd lot business. which
| will not be regretted by the commission
! houses or the odd lot dealers"