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

Special Telegram to the Globe.
NEW YORK, Oct. 6.-The bears have had
control of the market again, and have
hammered stocks at ,,.s elr own sweet Will;
They began light and easy at Northwest.
ern, Louisville & Nashville, and Union Pa
cifc, and the stocks-in fact most of the
active list, espond readily to the blows.
Then they hit Richmond & Danville, and it
was knock-down blow. This stock is
doubled up among few holders, who have
manipulated it to suit themselves. The
fall is said to be due to several reasons.
One reason given is that it was the result
of forced sales by q house which
had been carrying considerable
| of the stock. Friends Of the company
were not prepared for the decline, end the
prices ran of 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 was due to the fact that the insiders
are not giving any support to the stock, in
which there 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
u Nashville is in 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 a 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 SS was just asl much too low as 24O
had been too high. It was quoted at the
latter figure last spring.
There are rumors without end concern
ing Louisville & Nashville. Said broker:
II heard that the new stock has been dis
posed of. A firm identified with the
property has sold $8,OOO,OOO 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
cries are pool. If there is a shortage in
deliveries of new stock and loaned stock
is called, there will be bear panic. ''The
Keene interest are heavily long of the
stock at TO-" said well-informed opera
tor, ''and had bought on representations of
outsiders. When the truth came out the
stock was sold at an enormous loss, and
heavy shorts have since been put out to
try and 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 con-
troll in the interest of other important rail-
road systems. It 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 few months ago, arrange
ments we're made for taking care of the
floating debt, so little appears to have been
known of the extent of this debt as to
have caused the omission from the calcula-
ton of the amount ($2,OOO,OOO)
already accrued, and as much
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 a way
not to have stabbed the credit of the COM
pany. Certainly the method taken of in
| creasing capital rather than debts in favor
I0ff flo1 hold
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
| it comparatively easy work for
those who would pull down corporate
credit as expressed in market prices. It
may take some time for a 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 a pre-
liminary measure intended to bring the
stock nearer to equality with the CentAl
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 disapree-
ment in regard to Wagner cars on the Un-
ion Pacific read. Mr.. Vanderbilt leaves
tho city tonight for an extended western
tour, to be absent probably not less than
two weeks.
Speculation has reached the point of
Generalization. The outside public are
unloading without discrimination. and the
power to make quotations rests entirely
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
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