The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-04-22


were very different from what Wall street
nad rursuaded itself they would be The
continuation OF the chairrnan's assertions
VI overproduction In the company's line
anu the disposition TO cut prices was not
W pe construed as reputation and con-
traction OF the acts and gloomy predictions
OF chairman Gates. made on Monday Fri
DAY rumors of change of control of the
company, the ousting of the chairman and
the installment of II. c. Prick had all
oeen dfssipated when the Stock Exchange
opened In the morning. The effect was
seen in sharp break in all the iron in
oustrfals on opening transactions. 1t
reached points in Steel and Wire and
nearly that in others. The general list
gave way in sympathy, but met with DOW
erful support The steel stocks rallied with
the rest of the market on covering by
shorts. But il soon became evident that
the support afforded the market was sim
ply 10 anord an opportunity for realizing,
which set in on a large scale. Stocks
which have been pulled" had the heaviest
weight to carry on account of speculative
proht-taking. Missouri Pacific and B. e.
o. were conspicuous in that class, the
former falling 3isc and the latter 23sc. De-
ciines reaching up to points were num-
erous all through the railroad and indus
trial lists, and in several stocks exceeded
that. The bears were disposed to cover
on the appearance of a favorable bank
statement, but the rally renewed the pres
sure to Hquidate and prices fell to the
lowest. Among the steel stocks, the ex-
IRENE declines were: Steel and Wire, Ga;
Federal Steel. 5: Steel Hoop. preferred, 4;
Republic Iron and Steel, preferred. 315;
Steel Hoop, National Steel and Tennessee
Coal, 3. Losses elsewhere in the group
ran up to pa. There were some spasmodic
rallies on the taking of quick profits by
the bears. but the activity and general
weakness continued UP to the close
Stocks are generally lower than at the
closing of last weeks trading. which was
on Thursday, and the volume of business
has shown a progressive decrease from
day to day. The pools and combinations
which have had in view the bidding up Of
number of special stocks have relaxed
their efforts. and the bull contingent gen.
orally has assumed a waiting attitude
where they have not turned actual SELL
ers to realize. Wall street attributes this
condition of affairs largely to what is
called 1.-The steel and wire episode" Ger
tain insiders in that company are shown
TO be heavy sellers of the stock. On Mon
day the stock broke badly on this selling,
and after business hours on that day
Chairman Gates announced that a dozen
mills of the company had shut down. He
asserted that overproduction was the
cause. and accompanied the assertion with
gloomy predictions regarding the outlook
for prices in the iron trade as whole.
The conviction is very widely and firmly
held in the financial world that the future
prosperity of the country is based to a
large extent on the maintenance of the
present prosperous conditions in the iron
and steel trade.
MUCH ACRIMONY CAUSED.
This unexpected jeremiad delved into the
| inner circles of the trade and had a de-
| cisve effect on the course Of securities.
notwithstanding the most strenuous ef-
| forts to counteract it. These efforts often
| took the form of indignant protests and
| expressions of outraged sentiment. No cpl
| sode of recent years has caused so much
| bitterness and invective. Not only in
stock market circles, but in the iron trade
| as well, rose clamor of denial of the
| assertions and opinions of Chairman Gates
| Representatives of other companies and
| authorities in the trade were unanimous
| in cOntradicting the gloomy outgivings re-
| garding conditions in the iron industry
| There was a chorus of apprehension of the
| moral obliquity involved in bear move
| ment In stock by insiders of company
| Indications that the operations in the Stee
| and Wire stock were incident to bear
| campaign. of which the regular short sell.
| ing of railroad stocks a preliminary
| were cited as convincing evidences of the
| unworthy purpose behind 1.-The Steel anC
| Wire episode. But whatever ground there
! was for all this clamor, the fact remained
| that large number of steel mills were
| shut down and the effect of the interview
| was to cause yielding tendency in iror
| prices. 1t was proved that, viewed simply
| as a tactical maneuver. no more effective
| bear stroke could be devised than to arous,
| doubts over the soundness of the iror
| trade. 1t brought a large volume of securi
| ties 10 market ana discouraged the buyinf
| demand, even OF professional operators
| who prOfessed to see clearly the motive OF
| the whole proceeding and to disparage tn,
good faith and the truthfulness of it. Bust
| ness from outside sources dwindled TO un
| important proportions. rejecting the sen
| timents of doubt aroused in the minds o.
the business world. Even foreign stool
| markets showed this effect 1t served Il
| counterfeit affectually all favorable factors
making for higher prices
1t was the general feeling in Wall stree
that digestion of profits on the late ris,
in prices had been pretty we'll accom-
lished and the reaction had probably rJl
its course. A renewed upward movemen
was expected and was inaugurated witt
some confidence Monday, when the breal
in the metal stocks interrupted it. Their
was some apprehension that when the new
! bank note law began to operate the result
ing currency expansion would result in un
| Que speculation. The weeks reaction il
| the stock market is the more notable Il
| view of the easy condition of the none.
market under the effect of the new law
| The payment of premiums on refunde
| government bonds has contributed Iargel
| TO replenish the cash of the banks on sub
treasury operations. Owing to large pen
sion payments the governments surplus o
| revenues for the month thus far has bee
| kept at low figure. Easier money
| reported at New England points, and 4
the Northwest the payment Of loans is sal
| to be in progress. The local money mar
ket, under these influences, shows signs O
| becoming somewhat plethoric, and the UP
ward course of sterling exchange and tn
hardness of foreign money markets sue
} | gests what the outlets for surplus fund
will be. Exchange is already above tn
J | point where 1t was when gold last wen
| out, but at that time the Bank of Englan
was paying one penny an ounce higher fo
| American eagles and was allowing interes
on shipments in transit. In addition I
| easy money conditions statements of carr
| ings of railroads have proved favorabl,
, | The country's foreign trade shows in
creased figures. and the wheat market ha
reflected the excellent crop weather in sag
ging prices. The approach of a nations
political campaign invariably unsettles I'll
| stock market more less. But there ha
been no other positively unfavorable factC
i, at work but the Steel and Wire episode
The bond market has not kept up to III
full level of activity and strength, bl
; strong points have persisted in 1t all weel
United States fives, DID, and threes, regi:
tered, declined y and threes, coupon, "a
the bid price. New fours advanced ! pt
cent.
Following are Saturdays share sales an
, | the closing bid prices:
Closir
| Stocks. Sales Bi
| Atchtson ......-....'............'.. SigdV 80