The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-10-27
NORTHERN PACIFIC ROW
Still. CAUSES DISTURBANCE IN THE
SEA OF SPECULATION.
Trouble Seems to BE as Far from n
Settlement as Ever-Monetary Com
ditiOns Continue Unsatisfactory.

tating irregular stock market to-day until
the appearance of the bank statement on
the tape. The unexpected increase in the
cash reserves of the banks Of 81, So, 800
prompted the bears to cover their short
lines and rally the market generally TO
above last nights figures, although the
net changes generally will be seen to be
insignificant. There was positive indie
pendent strength in Missouri Pacific which
advanced it PA above last night There
was no news to explain the movement, and
the sympathetic effect on allied stocks was
slight Peoples Gas made a good recovery
from recent weakness. st. Paul was active
and fluctuating, and received the full bene-
fit of the late covering movement. Anal
gaInated Copper was heavy throughout,
with news of the shutting down of the
company's mines, and in the late dealings
the stock broke 21s under last night inter-
rupting the recovery elsewhere and making
the close irregular. The source of the re-
ceipt of cash by the banks is a mystery, as
known movements of money indicated a
loss of upwards of s., 10000 for the week.
The loan item reflected the continuance of
reborrowing by debtors who are paying off
foreign loans.
After falling into a lethargic condition
early in the week the stock market de-
velOped a degree of activity and strength
later. The buying, which was responsible
for this advance was large and concen-
trated in its source and congested in few
stocks, shifting from day to day from one
group TO another. The movement was
initiated in the Chicago q Northwestern
stocks, shifting into the VanderbiltS gen.
orally, then into St. Paul, Union and
Southern Pacific and then into the coalers.
The industrials and specialties have moved
independently, as is usual in periods of ir-
regularity in the general market. notable
of rlref
dominating professional character of the
operations. Commission houses which usu-
ally operate on orders from the general
speculative pubic nave been cOnSplcuouSly
in the background during the week. Brok-
erage houses usually employed by the great
financial interests in the street have exc
cuted large orders on both sides of the mar
ket, leaving the uniformed public confused
to whether those interests are committed
TO the long or short side.
Doubt and uncertainty, in fact, are still
the prevailing sentiments in speculative
circles. Some of the buying has been at
tributed TO progress toward a settlement
of the Northern Pacific controversy. If
insiders have bought stocks for that reason
it is on information of which the public is
kept in ignorance. The actual develop
ments show a condition of that cOntro-
versy so far from settlement as to promise
prolonged period of negotiation, even
with the best intentions for final peace of
the parties in interest. That negotiations
are in actual progress is clear, but ii is
also clear that these negotiations are now
first undertaken on a subject which Wall
street assumed was definitely settled when
Mr.. Morgan announced the members he
3 has chosen to balance the Northern Pacific
board of directors. The various statements
given out on authority Of President HILL
of the Great Northern, and of the Harri-
man-KUhn-LOeb interests clearly show di-
vergent views and the holding to them
! with determine ton.
The Hill interests have insisted on their
! contention that Northern Pacific preferred
is TO be retired i'm accordance with the
/ rad in ,elr,r~ f11a
| reorganization plan. The effect of this
would be to Gust the Hartman Kuhn-LOeb
interests from their control, which is
through preferred stock holdings, and leave
the Morgan-Hil majority of the common
stock i'm control of the company. The
Union Pacific party is equally insistent that
their control of the disputed property is
not TO be relinquished. The recent buying
/ of Northern Pacific preferred is supposed
to be by this party. 1t is admitted that
numerous legal and technical obstacles eX-
list TO the adjustment of ownership of a
/ railroad company by competing or parallel
/ lines
! Importance is attached TO the money dis
] turbance in foreign markets As bearing on
! the large foreign credits which have been
! used to carry the large holdings of North
/ ern Pacific ever since the lookup in May.
! Repayments Of these credits have con-
/ tnued to sustain the foreign exchange
! market this week as for some time pa st
| The course of the loan account of New
! York banks shows that this burden is
| shifted upon domestic credit institutions,
| waiting on the Northern Pacific settlement
| for relief The usual fall inflow of gold to
| this country is thereby interrupted. except
| as the Australian remittances can be sub
| stituted. The calling home of French cred
/ its seems be for the purpose of meeting
| heavy losses incurred by French capital by
! 0verinvestment in Russian industrials The
| long process of liquidation in Germany also
continues, following the collapse from
J speculative imitation. The maturity of obli-
| cations at the years end in those two
| countries and Great Britain's continued ne
| POnNuCf q
! in South Africa indicate a strained period
| at that time, which is likely TO be reflected
| over the whole financial world. AS to i'm
| mediate money conditions in New York
| the government surplus is making renewed
| demands on the market. now that the gov
| eminent bonds redemptions have ceased.
Railroad bonds have been i'm improved
| demand at advancing prices. United States
! refunding twos declined u and old fours a
! The threes advanced Il above last week
| closing dull
FOLLOWING are SATURDAYS share sales and