New-York tribune., 1920-08-03
Stocks Tumble,
Many Reaching
New Low Level
Uncertainties i'll Financial
Outlook and Rumor Of
Russo Polish Armistice
Terms Take Market Down
Crash f ollows Gains
Rate Decision Outweighed
i'm Sensational Decline:
Indusirials Hit Hard

Uncertainties in the financial and
business outlook, coupled with the ru.
mors OF the publication of Soviet
gussia's armStice terms to Poland. out
weighed the effect of the favorable rate
decision of the Interstate Commerce
Commission on the Stock Exchange vcs.
terday, and after rise in price during
the first half hours trading. stocks
tumbled for the rest of the day until
st the close the industrial average had
found a new low level for the wear
United States Steel common. after
opening UP a point at 50, dropped
to s5s.a the lowest price since 1917.
Railroad stocks on their initial trans
actions showed average gains of from
/ to points in the more active issues
but before the close Of the stock market
session much of the earlier rise was
wiped out, with some stocks showing
decline from Saturdays last sales.
New York Central. Baltimore e. Ohio.
Rock Island preferred stocks. Lehigh
Valley, Norfolk & Western and South
ern Railway retained enough of their
earlier advances to still show net gains
at the close.
Stocks at Lowest Levels
Liquidation in the industrials was
heaviest in the last hour, when pro-
fesslonal traders, leading the attack.
were successful! IN bringing about the
lowest prices of the day. Stocks which
made new lows for the year. in addi-
ton to Steel common, included Ameri-
can Can American Smelling and Rein
Ing. American Woolen. Bethlehem Steel
Central Leather, Chandler Motors. Mid
vale Steel. United States Pubber and
United States Industrial Alcohol.
Some of the net losses for the dav
were United States Steel, 24: United
States Rubber, 3A; Studebaker. 2S:
|anadlum Steel, 6as; Stromberg Car
buletor 8; Reading. 21s; Mexican
Petroleum, SA; Crucible Steel, AZ;
Corn Products, 2Ss; Chandler Motors,
81; Bethlehem Steel. SIS; Baldwin
Locomotive, AS; Atlantic. Gulf & West
Indies 5a4; American Woolen. a.. and
American Can, 3l4.
Despite the heavy losses suffered in
the stock market, railroad executives.
bankers and industrial leaders con-
tlnued to make favorable comment on
the interstate Commerce Commiss;on's
decision, which will increase railroad
revenues by approximately S1.50O.-
100000.
Charles Hayden. chairman Of the
Chicago, Rock Island & Pacific, said he
believed the rate increases granted
were perfectly satisfactory. How
ever" he added, at is nothing more
than the Interstate Commerce Com
mission should have done and am
pleased that it took the action it did.
There is one point in the situation,
however. and that is that the higher
tariffs should not be considered a rea-
son for further wage increases, as
these Increased rates will not cause
any material increase in commodity
costs
Charles E. Mitchell, president of the
National City Company, said that
while he was particularly gratified at
the promp. action of the Interstate
commerce Commission, he did not look
for any food of new railroad financing
IN the near future
Rate Decision Commended
The first grade roads," said Mr..
tneir ability to obtain funds, but the
second grade roads will undoubtedly
meet with difficulties. Much will de-
pend on how the increase in rates will
affect Individual properties. Only esti-
mates can now be obtained and bonds
cannot be floated dn estimates How
ever. am we'll pleased with the de-
ward has been takeR in the rehabilita-
ton OF railroad credit"
Thomas W. Lamont, Of J. P. Morgan
& Co.. commended the action of the
Interstate Commerce Commission, but
expressed the opinion that railroad
credit cannot be restored to its@pre-
war position until the carriers show
sufficient earning power to make new
stock financing practicable.
W. Il. Woodin, president Of the
American Car and Foundry Company,
said: This action Of the Interstate
Commerce Commission is one of the