Daily globe., 1882-10-07
NEW YORK.
Especial Telegram to the Globe.

NEW AVAAAe
Especial Telegram to the Globe.
NEW YoRK, Oct. 6.-Rhe bears have had
control of the market again, and have
hammered stocks at their own sweet will.
They began light and easy at Northwest
ern, Louisvilie & Nashville, and Union Pa
cifc, and the stocks-in fact most of the
active list respond readily to the blows.
Then they hat Richmond & Danville, and it
was knock-down 1low. This stock is
doubled up amonga few holders, who have
manipulated it to suit themselves. The
fall is said to be dze to several reasons
One reason given is that it was the result
of forced sales by a house which
had bssu carrying considerable
of the stock. Friends of the company
we're not prepared for the decline, and the
prices ran Off before sustaining orders
could be PUT into the board. When sus-
tanning orders cane the price rallied five
points. Another reason given is that the
decline vas due to- the fact that the insiders
are not giving any support to the stock, in
which tslGse has never been any active
dealers. The earnings in September are
said to be the largest in the history of the
road. 1t is pretty certain that Louisville
q Nashville is Ia a measure responsible.
Tho recent reports detrimental to that
company have had the effect of weakening
confidence in southern railroad securities.
Several citizens Of Richmond who are in
the city, said they could not account for
the fall at the present time, except want
of confidence. They, however, admitted
that several persons in Richmond had been
losers by the Richmond & Danville rail
road company. It was stated on the street
that SO was just as1 much too low as 240
had been too high. It was quoted at the
latter figure last spring.
There are rumoss without end concern
ing Louisville & Nashville. Said broker:
81 heard that the new stock has been dis
posed of. A firm identified with the
property has sold $e:0OO,OO0 of the
stock, and syndicate has agreed to take
the balance" If this is the fact in the
case, shorts will have to climb to cover.
The short interest is enormous. and deliv
ieries are pooI. IF there is a shortage in
deliveries Of new stock and loaned stock
rs called, there will be bear panic. ''The
Eeene interest are heavily long Of the
stock at 7O,'' said well-inforned opera
tos,. s'ard had bought on representations Of
outsiders. When the truth came out the
stock was sold at an enormous loss. and
heary shorts have since been put ont to
try aad recover some Of the money" There
is now no reason for supposing that
the stock of this company has been de-
pressed for the purpose of securing COLI
troll in the interest OF other important rail
road systems. 1t is impossible to ascertain
from any one in New York whether the
new stock has been sold or practically sold.
or how If it has not been sold it is to be
marketed. Naturally it does not tend to in
spire confidence in the management to
find that when a few months ago, arrange
ments were made for taking care of the
floating debt, SO little appears to have been
known of the extent of this cebt as to
have caused the omission from the calcuIa-
ton Of the amount (S2.OoO,OOO)
already accrued, and as much
more certain to accrue from the arrange
ments made. AS to the policy of adding
to the capital account rather than increas-
ing fixed charges, it is undoubtedly wise
and should have been resorted to before.
where it could have been done in way
not to have stabbed the credit of the COM
pany. Certainly the method taken of in
creasiug capital rather than debts in favor
of the bond holder, and there seems to be
no reason for the decline in the market
price of the company's bonds. But the
whole affair, which is no longer matter
Of rumor, has created feeling Of distrust
of the way corporations are managed,
has directed attention to other
corporations, and has made
it comparatively easy work for
those who would pull down corporate
credit as expressed in market prices. 1t
may take some time for recovery in the
market from the feeling of distrust, and
there is danger that in the meantime such
influences as are in favor of higher prices
for many stocks will be neutralized.
Two theories prevail in regard to the
attack on Union Pacific. One is that for
personal reasons efforts is being made to
shake Mr.. Belden. out of his.stock. The
other is that the Union and Central Pacific
companies are to be consolidated. and that
the hammering of Union Pacific is pre-
iminary measure intended to bring the
stock nearer to equality with the Central
Pacific.
Mr.. Vanderbilt is very confidently al
legged to have sold out of Union Pacific.
Mr.. Dillon is quoted as saying that Mr..
Vanderbilt sold because of some disagree
ment in regard to Wagner cars on the Un-
ion Pacific road. Mr.. Vanderbilt leaves
the city tonight for an extended western
tour, to be absent probably not less than
two weeks.
S;,ecciHtion has reached the point of
decentralization. The outside public are
unloading without discrimination. and TIE
power to make quotations rests en:irely
with the professional operators. Cammack.
Keene & Gould have been free and bold
sellers. and the only buyers are the men of
shrewdness who have patience to wait and
who never come into the market to buy