The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-07-12
4 SHARP BREAK IN STOCKS.
r r,yDERBILT SHARES AND GEN.
ERAB ELECTRIC LEAD
THE DECLINE.

r.oubIe Due to ltdutontOn ana nm Ap-
..,o. OF Buyers-An Example OF tho Mis-
,,,oruatIon London Receives Relative to
,...r,c.n Anairs- Wall Streets View Of
p,,,.deiphin'. Ambition to Become n Re
..rv. Centre - Heavy Esports OF Wheat
xxu Probably Bring Gold from Europe.
Tho stock market, which has been very
...riv dormant since the semi. panic in May.
suddenly became active yesterday. And to
49, .urprlse OF every one. liquidation became
WV in quarter where 1t was least ex-
.,,.d namely. In tho Vanderbilt stocks. The
s.nsral impression for number OF years
~. been that the principal Vanderbilt
.h.roa namely. Lake Shore, Northwest. and
W. York Central were so closely held and SO
Iii Thought OF BY those who own them that
.nIaree amount was likely to como upon the
m.rtet There has been OF late some selling
~ New York Central on account OF the pro-
no.ed issue OF new stock. but Lake Shore and
yorthwest have simply moved In quiet way
IN sympathy with the general tendency Of
nrices, which has been downward.
On sales Of 10000 shares. Northwest
dropped to OF yesterday. and closed at that
azure showing net decline OF AZ por cent.
for the day. Lake Shore. on sales of only 6.OOO
sbares closed 5h per cont. lower than on
Monday New York Central was even less ac-
i've, and sustained much smaller net loss.
when the selling OF these stocks began. about
midday, the brokers on the floor OF the Ex-
.hsnue wero inclined to attribute the orders
N A prominent bear operator. especially as
anna Of them wero executed by brokers whom
he frequently employs.
Before the close OF business the Street
changed its mind upon this point, for the
,e.son that the selling had by that time ex-
landed to number OF other stocks. notably
G.nsral Electric. St Paul. O.. B. and Quincy.
Rock Island, and Western Union. with crush
Inc effect In the last hour some ono UNDER
took to sell a block Of Chicago Gas. and sue
s.eded in breaking the price half dozen
noipts. Half Of this decline took place just at
the close. when. on sales Of 900 shares. tho
n-ies dropped from 64S to 81. It was aaid
that this final break was due to the execution
Of stop order at "a. However that may be.
tho Incident disclosed u paucity OF buying
orders that astonished the Street
In consequence OF this final drop. Chicago
Gas sustained the greatest net loss recorded.
which was IN per cent on sales Of little less
than 10000 shares. In an ordinary market
more than twice that amount could have been
sold without affecting the price moro than
point The heaviest trading was in st. Paul,
and It's prominence in point Of activity was
doubtless due to tho fact that London sold
quite little OF 1t early in the day. and then o
somewhat cratic room trader is said to have
lquidsted an extensive line OF speculative
stock. On sales Of 10000 shares It closed Az
per cent lower than on Monday.
The greatest interest centred. perhaps. In
General Electric. That stock was pressed for
sse all day. and the market for 1t was weak
throughout. 1t was next to st. Paul In point
ofsctivity, and second only to Chicago Gas in
ne progress It made toward lower prices. its
not loss being 6k per cent The Simultaneous
selling Of this stock and Of tho Vanderbilt
shares led many brokers to believe that the
large orders in them came from member Of
tho Vanderbilt family by marriage. His con-
nection with the General Electric Com pany is
vol known. and 1t was argued that no one else
outside OF the yanderbilts themselves holds
enough Lake Shore and Northwest to be able
to sell those stocks on the scale they were
thrown over yesterday.
It seems hardly probable that yesterdays
money market was entirely responsible for the
liquidation that took place throughout tho
stock market for the stocks that led In the de-
cline are as Q rule the best on the list, and.
with the possible exception of General Electric
and Sugar Refining would stand the scrutiny
Of the most exacting and conservative money
lenders Money ON call was not particularly
active yesterday. ruling at 3 to 10 per cent.
There Is, however. no time money Offering
worth speaking OF. One broker announced in
the Board that he had 100000 to lend for
sixty days. He was regarded as q curiosity.
since no one has offered time money in the
loan crowd before for many weeks.
In the last hour Of business the action Of the
market convinced even the most skeptical that
tho bulk OF the selling up to that time had
been Of long stock. for values melted away
with rapidity that produced Generalization.
The swiitness OF the decline and the absence
OF any rally whatever demonstrated that there
was practically NO demand for stocks except
from the shorts and few venturesome room
traders The character Of many OF the stocks
that suffered most severely yesterday gave the
decline greater importance than any similar
movement on tho Stock Exchange for long
time past
London was not much OF factor in the stock
market after the first hour. during which it
sold good many stocks. Two failures were
announced on the London Stock Exchange
Yesterday. and though the liabilities in neither
case were large they served to intensity the
uneasy feeling created by additional confess
slons OF insolvency by Australian corporations
en1 6ankers- 1twould appear from recent ad-
wees from London that SO far as American So
eurities are concerned the reasons for selling
saem are furnished from this side OF the waller.
private letter received yesterday from
well-known authority ON financial affairs In
london tells OF the unfavorable impressions
steated abroad by the wild and intern perato
uuerances Of demagogues and newspapers In
inc silver producing States. Foreign investors
end dealers In securities are not In possession
olsuiiicent data as to the standing and inGu-
snce oil many OF the politicians and editors who
are Taving about silver to form an intelligent
estimate OF the value Of their remarks. Hence
uey take them all seriously and regard them
az to BIO influential In shaping legisla-
aoh relative to financial Affairs.
AS a sample OF the news cabled from this
country to London tho following quotation
noni the letter referred to above is given. 1t
dated July1:
!, "propos OF a silver collapse and Americans.
" ore Was telegram In yesterdays second
tuition OF the Times. published about mid
uaE which brought about a mild furry and
eAei'ed good deal Of comment The tele-
st ,a, was In two parts. The first dealt