The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-05
RAIL DEMANDS
TUMBLE STOCKS
! 2 TO 1S POINTS
Market Suffers Most Severe
Break of Year-LOSses
All Along Line.
FAVORITES ARE HIT HARD
Sales Continue All of Session
as Result Of Ultimatum of
BrotherhoOds.
FAvORITEs ARE HIT HARD

The stock market suffered yesterday
its most severe break OF the year,
with prices crumbling before the on
slaught of the professional beara,
whose operations were aided material
ly by important liquidation from large
holders Of stocks. Virtually the whole
much as 1sh points were registered
in some active issues. Declines Of 10
points on the day were numerous,
while a large number Of securities
declined from 2 to points. 1t was
a virtual rout for those on the long
side of the market. and many a large
block Of supposedly we'll held stock
was forced on the market during the
riotous session.
The chief cause was the ultinatum of
the railroad workers unions that the
roads must be taken permanently under
Governmental wing. From the start OF
trading In the New York Stock Ex-
change, as well as In the other stock
exchanges and commodities markets. 1t
WAS obvious thai ,the condition brought
about by the brotherhoods' stand was to
have y bad effect on prices. And as the
day progressed the selling continued
with little let up. At no time could Il
be said that the market had any i'm.
portAnt rally, or scarcely even check
in the drop. ..A
Wall street starts Glumly.
! Wall Street started at work yesterday
morning feeling glum and sour after
| reading its morning paper. Scarcely any
one could be found who did not look for
\ a sharp decline In securities.
The fact that Wall Street was moi
surprised perhaps accounted for some
at least Of the selling. Many own
ers Of Tong stock who had good
pronts to their credit hastened to sell
at the earliest possible moment. Added
to this liquidation was constant pressure
by tho professional bears.
Other breaks had occurred since the
new year was hailed. but none was sc
marked or 80 consistent as yesterdays
! Almost 100000 shares changed hands
| In the five hour session in the New York
| Stock Exchange.
The money rate ranged between s and
7 per cent all day. touching its low
| figure late in the afternoon when the
J stock prices were at their lowest.
Call funds were relatively plentiful
with the rate remarkably low, com
| pared with some Of the 10 and 20 pei
| cent. money Of the last few weeks.
The stocks which suffered most were
those which had been bid up the highes,
in recent weeks.
Drop of More Than Is Points.
/ Stromberg Carburetor recorded tn,
greatest decline OF all--more than II
points. Stromberk experienced sen
sational climb a couple Of weeks ago
shooting from 4 little above so to 104
within a short time. 1t then declined
rapidly to sS. around which point 4
held fairly firm until yesterdays crash
BY reason OF its topheavy market posi-
ton It was wide open to bear attack
and with a nnal sale around 73 Il hat
been driven down some Is points.
other securities which have been lead
ers among the speculative fayorites II
recent weeks got a sharp drive down
ward. They included the steel shares
some shipping shares, some specialtiea
oils, motors, etc.
United States Steel common, leader o
the market for years, suffered a 5 poin
ride down the scale ..losing below 1ol
and within u OF Its lowest prtce'of thu
! session. American Woolen. specialt!
marked by excessive speculation In tn,
last couple Of months. declined NOR,
than II points to 40. against a close o
il2lh on Friday. American Bosch Mag
neto fell some points, Atlantic. Gulf
West Indies more than II. Corn Prod
ucts 7, Endicott Johnson more than 9h
General Electric ~, Mexican Petrol
cum almost IL, Pen American Petrol
cum 0, Stutz Motor sh, United Frui
s, and 80 on through the whole list.
OF the at stocks traded In yesterda.
only eight showed a gain. Each Of tn
eight was 3 preferred stock. All tn
others closed at loss.
The eight stocks which closed at
gain were:
Cruclble Steel Company preferred
LigRatt Myers Tobacco preferred
iIakesErie and Western preferred, Mex
lean Petroleum preferred. New York
Chicago and ST. Louis second preferred
New York Dock preferred. United Dru
Company first preferred and Virginia
Carolina Chemical preferred.
The financial rout was not confined I
the stock market. however. Cotton SUI
fered along with the other commodities
at one time being 200 points below Sat
urday's closing prices. Grain, too, re
ceivsd its share of the general demoral
lisation, while tho securities traded In o.
the Curb slid down the line with thos
lon the big board"