Douglas daily dispatch., 1926-03-04
STOCK PRICES
STILL DROP ON
MERGER REPORT
[1ly pispa,ci, a. p. wirel

NEW YORK, March 3.-Another
dramatic break in prices, in which
all existing records for the volume
and breadth of trading were broken,
took place today in the New York
stock exchange. Net declines in the
active issues ranged from 1 to S3
points with the shares of stocks Of
railroads identified with pending
merger plans bearing the brunt of
the selling attacks, due to the in
terstate commerce commissions re-
lection of the proposed nickel Plate
consolidation.
Total sales as compiled by Asso-
ciated Press tabulators were 3,7S5,7O0
shares, as compared with 3,O15, 200
yesterday and 3,34O,6OO in the previ-
Gus record breaking session of No
vember 10, 1925.
The number of industrial stocks
dealt in was 65S, as compared with
the previous high of 625 established
yesterday.
Despite the unprecedented and al
most perpendicular decline of the
past two weeks, which is believed to
have reduced the quoted value of the
securities listed on the exchange by
over $1,000, 10000 no uneasiness over
the financial situation and credit
standing of brokerage houses was
apparent in leading banking circles
tonight.
One of the most powerful banking
Institutions in the financial district,
which has come to the support of
the stock exchange in the past fl
nancial crisis made inquiries of sew
eral stock exchange firms today, ana
also conferred with stock exchange
officials, later making it clear that
their reports showed conditions to
be sound and that there was no
cause for alarm as result of the
recent break in securities prices.
Lowering of the renewal rate on
call money to Az per cent and the
appearance of substantial buying or
ders for such high grade stocks as
United States Steel common, Ameri-
can Smelling, New York Central and
Union Pacific, none of which broke
below the low price established yes
strong banking support in todays
market
Nickel Plate" common was the
hardest hit, collapsing 33 points to-
130 on total sales of only 1900
shares, the first of which did not
appear on the tape until near the end
of the third hours trading. 1t sold
as high as 1878 earlier in the year.
Common stock of the Chesapeake and
Ohio, whose minority stockholders
successfully proposed the financial
terms of the Van Swerigen consoli-
dation scheme, showed Independent
strength, soaring over points to
1925 but slipping back to 1862 at
the close.
Fears that the adverse :'Nickel
Plate" decision would upset or delay
other railroad consolidation plans
brought about heavy selling of such
issues as Atlantic Coast Line, Louis
vile and Nashville, Rock Island,
Delaware and Hudson, st. Louis-San
Francisco common Wabash, Missouri
Kansas Texas common, Missouri Pa
cific, Kansas City Southern, Lehigh
Valley and Pittsburgh and West Vir-
ginia, all of which were hammered
down to nearly 10 points below
yesterdays final quotations.
Distress selling also was apparent
today in some of the high priced in
dustrials specialties. American Can
dropped from 315 to 290 and General
Electric from 32414 to 302, with over
a score others showing net declines
of to 10 points. Anaconda, Hupp
Motors, Westinghouse Air Brake,
Texas Gulf Sulphur and Western
Union were among the relatively few
issues to show substantial gains on
the day, closing to 5 points hign-
er.
Seldom in recent stock exchange
history has there been a sustained
decline as long and as extensive as
the present one. This was attributed
by many brokers to the fact that
many professional bear traders, who
started hammering the market over
a week ago, had covered their com,
mitments in the early part of the
week. AS a result the tremendous
volume of real liquidation by in
vestors and small traders arising
from the unexpected action of the
commerce commission
found the market without the steady
ing influence of short covering ordi-
narily in evidence after each drastic
decline in quoted values
The unprecedented volume of bust
ness today again taxed the facilities
of the stock exchange and the lead
ing brokerage houses The final
quotation made it's appearance on the