The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-06-03
STOCKS RISE BUOYANTLY FROM 4
NUMBER or CAUSES.
settlement of Northern Pacific of PO-
tent Enect-Easy Money and Good
Crop Situations Helpful.

return TO the level of prices and the ad-
vancing tendency which was interrupted by
| the devastating effects OF the corner in
| Northern Pacific. There was headlong buy
| ing of stocks all through the list on a
buoyantly rising scale. All things were
| made fuel for bullish enthusiasm, and any
news which seemed to threaten values was
| Ignored. The market took on all the char
| acteristics of the recent boom period,
and after absorbing all offerings to take
profits rose vigorously again in the final
dealings to the highest of the day, where
| 1t closed. There was no exception to the
| strength of the market. but some OF those
| stocks which have been advanced sharply
| or late were kept steady by the offerings
| TO realize profits. This was notably true
| OF the southwestern and Southern rail-
| roads. The early squirt was most sensa-
| tional in Union Pacific, the United States
| Steel stocks and Atchison. The first sales
| of United States Steel were of 5o.Wo shares.
| The rise i'm Union Pacific extended to 3s4
during the first hour There was some re-
action midway OF the session. but the
grangers became conspicuous, led by st.
Paul with a 93s points rise. Rock Island
gained 5H. Northwestern AS and Great
Northern preferred i1s.
There was still a conspicuous absence or
dealings in Northern Pacific. not single
transaction being recorded either for the
common or preferred. Not even Ola
and asked" was recorded for the common
stock at the closing. The details OF the
Northern Pacific agreement are not an
nouncd and rumors were numerous, point
ing to wide-Teaching adjustments all
through the railroad world as corollarles
of the Northern Pacific settlement The
whole of the Northwestern railroad system,
it was said, would come into one har-
monious control and representation OF the
same control would be found in the Union
Pacific system. Union Pacific, said the
gossips would detach the Southern PACING
for the benefit of Pacific outlet for the
Gould Southwestern system ana content
itself with the Central PACING. Inc opera
tor who was regarded as the market leader
during the recent boom was very con-
spicuous in the days dealings and bought
many thousand shares of many different
stocks all around the room. The bulls de-
clared that great financial powers had In.
trusted large resources to the dlrectloi, oi
this operator to inaugurate a new buli
movement. The bank statement showed
an unexpected increase IN cash reserves,
and the large loan expansion was taken as
an indication that all important nqulda1lon
i'm the stock market had been competed
and measures were being taken Tor renewed
operations in the market; Inc cams rs III tr rne
points or over. There was an enormous
absorption of Union Pacific convertible
bonds as we'll as of the stock.
THE WEEKS BUSINESS.
The stock market has shown more ANNA
ton and more consistent strength TINS
week than at any time since the commotlon
of May Q. Professional operators still make
a large proportion of the dealings, ana
there have been many movements, es-
pecially i'm the industrial list, that can only
be explained on the score or manipulation
by pools. But, beyond these. there has
been palnable effect produced by mum,
Der of developments which were interpreted
as favorable by the stock traders IN the
general situation. There was feeling in
the street that the project of an ADJUST
ment of the Northern Pacific dispute and
OF avoidance of further hostilities as an
outgrowth was coming to a settlement. The
conviction of this was strong before the
official announcement, based on number
of differences. The arrival OF Mr.. Morgan
in London from his vacation fostered II, as
his decision upon the matter was essential
la any event. So did the fact that confer
ences were going on in this city between
the parties in interest. The upward move
n,ent in Union Pacific and Southern Pacific
Is accepted as cOrroborative evidence. The
offer of the two banking houses which rep
resent the contending interests to allow
the London interest TO settle for the fixed
price of 153, where they are honestly un-
able TO make delivery relieved somewhat
the fears of further stock market dis
turbance growing out of the difficulties or
the shorts, but the wording of the offer
makes it clear that there was no relaxation
or the closeness with which the rivals were
exacting all possible deliveries of actual
certificates of the stock. The stock is also
practically unprocurable in the market.
The fact was considered significant that
the list of collateral for the slOO,OoOOOO is
given in the application 10 the Stock Ex-
change to list those bonds, did not include
any Northern Pacific stock. The inference
was that the stock was thus designedly
left free to be disposed Of In any settlement
of the dispute in the Northwestern rail-
road territory A clause In the mortgage,
however, makes Ii clear that the proceeds
of the bond issue may be applied to reim
bursting the expense of the Northern Pacific
purchases in the interest Of the company.
In the meantime the project, which is
souri, Pacific" has taken on greater dis
tnctness of outline and admittedly includes
a trunk-line outlet for the Gould Rockefel
Ter Southwestern system to the Atlantic.
Both the Erie and the Delaware. Lacka-
wanna & Western seem, from the market
movement of their stocks. to be aimed at
by this project. The advance in this group
of stocks. under the buying supposedly for
this purpose. has had a stimulating effect
on other stocks. There has been large buy
ing of Atchison and a revival of the rumor
that this was for account of the Pennsyl-
vania in retaliation for the Gould project.
The disapproval OF this project by the great
trunk-line proprietors is taken for granted.
The interests thus brought into conflict
would be partly identical with those in
volved In the Northern Pacific dispute.
OTHER FRICTION POINTS.
Suggestions of friction along the same
lines are found in the rumors of Illinois
Centrals plans for entering the Chicago
ST. Paul granger field through the Mime
apolis & st. Louis and Iowa Central and
the report that large purchase of Ohio
bituminous coal lands is supposed to be
for Gould account. Apparently, the specu-
lative traders have returned 10 their old
Interpretation of these developments as in
dicating the extension of community OF
interest rather than the later interpreta-
ton induced by the Northern Pacific Incl
dent. of harmful rivalry between the great
railroad powers 1t is to be said that the
stocks which have been moved up by these
causes have also enjoyed the advantage of
remarkably strong showings of net earnings
for April. In fact, their first movement was
In response to the earnings statements
Atchison, Southern Pacific, St. Louis 81 San
Francisco, Union Pacific and Southern
Railway were all affected from that cause
April statements OF net earnings and OF the
May gross earnings was an influence on
the whole railroad list The continuing
good prospects for the cereal crops and the
reports of serious damage TO foreign crops
had a strengthening influence on railroad
stocks.
Political considerations also PLAYED =
mite settlement-of the Chinese problem
made itself felt In all the markets OF the
world. The Supreme Courts decision in re
SO-called insular cases negatively
Strengthening since a contrary decision I'M.
setting present considerations would nave
been opposed TO the fixed distaste of cant
tai for change The action of the Cuban |
constitutional convention on the Plat
amendment at first regarded as a |
favorable factor in the market. The con-
tinued ease of money indicated a growing
accumulation of idle funds and a prospect
of increased efforts TO find fixture tor
them. For this reason the export OF gold