New-York tribune., 1901-05-09
BONDS.
THE DAYS OPERATIONS IN STOCKS


THE DAYS OPERATIONS IN STOCKS.
An extensive break in prices took place in
yesterdays market. Liquidation was heavy
throughout the list from the opening until the
close but the sharp setback in values did not
develop until the last hour of business, when
losses Of 8 to 10 points were common. while in
the case Of ST. Paul and a few other issues
heavier declines were made. The market was
extremely feverish in the morning. with the
general drift of values toward a lower level,
selling of all the active issues apparently being
for the account Of substantial speculative in
ferests. In the early trading a further sensa-
tional advance in Northern Pacific served TO
restrict for a time commission house transac-
lions, and as a consequence the mornings total
of business was well under recent record break
.ng figures. Afternoon dealings, however, were
enormous and in the last hour brokers were
unable TO handle all their orders. An idea Of
the activity at the close may be gained from the
fact that last quotations were not sent out on
the tickers until twenty minutes after the official
time for closing In some stocks a bull panic ap-
peared TO be under way and in the Of st.
Paul q 20 point drop apparently reflected a
condition Of acute alarm among the holders OF
this issue.
Opening at 155, against Tuesdays closing at
1885, Northern Pacific rapidly advanced TO $50,
and as rapidly declined to 145. from which price
a recovery was made to 16S with the final quo
tation at $50. net gain for the day of 1872
points At the top level $500 shares changed
hands while the advance from 155 to $50 was
accompanied by dealings Of only $500 shares
Various reports were circulated regarding the
basis Of the corner in Northern Pacific stock
but insiders denied that they were interested in
the movement even going so far TO make the
49,
any attempt TO effect a corner in the stock. This
statement was put out, however, after the shares
had touched $50. Financial giants own the
Northern Pacific Railroad, but at the moment
the giants are apparently fighting among them
selves for the controlling power in the company
Union Pacific is involved in the trouble. while
Burlington and ST. Paul are also concerned, and
unless the difficulty is speedily and harmoniously
settled other roads may also become affected.
The extension OF the community Of control
scheme appears to be developing a serious
amount OF friction.
The rise in Northern Pacific common in the
last few days has hurt the general market as
well as damaged this particular stocks invest
rnent reputation. Corners" always injure
market Northern Pacific has advanced many
points beyond its actual worth and it is absurd
10 expect that 1t will maintain fits present price
tor any length OF time. And in going down it
may carry the whole railway market along
Fearing bad effects from the Northern Pacific
speculation. many people sold their stocks yes
terday, while conservative brokers demanded
enormous margins all purchases. On the
London Exchange sharp declines were suffered
by all the American issues and at times the
market was demoralized, especially in Northern
Pacific shares in which an eleven point break
took place. In the afternoon the local market
m eal1g
out the list, which was followed by sensational
declines in many issues. St Paul, Union Pacific
Atchison and Rock Island declined from five to
twenty points, recovering little before the close
The sharp breaks in these issues Were not due to
any known development affecting the proper
ties. The Street was frightened over reports
that big insiders in various companies were
fighting, and the ordinary public operator sold
on the theory that If the big" men were fight
Ing II was good time for the small" men Ito
stand from under"
Money was firm throughout the day. with call
loans as high as 20 per cent, and more gold was
taken for export. These factors helped to in
crease speculative nervousness in all quarters
OF the Street but they We're not the governing
causes or the days course Of values Manv
people thought that the corner in Northern Pa
cihc stock marked the end Of the mad buu revel
And many people who sold out ST PauI and
other prominent shares thought that the hostil-
fly among large interests would make contem-
plated railway consultations impossible for the
present at least In st. Paul, Burlington and
Union Pacific this theory was an important in
huence In shaping the movements of the stocks
In conservative circles it is naturally hone5 tho.
the craze for buying railroads at fancy prsces
has reached its limit. The terms at which con-
solioations are being effected are excessive and
the cost is now beginning to stagger the rublic
The industrial shares held comparatively firm,
while the railroads were declining and the po,nt
was made that the industrial issues were the
safest purchases on the list. These stocks have
not taken much Of a part in the bull movement
OF the last few months, and there is. therefore.
no reason TO look for any material decline in the
solid members Of the group. The Industrial
companies are not issuing bonds or increasing
their obligations. The railroads are however
ano even the Pennsylvania stockholders have
TO raise about 100000 for the new stock TO
which they entitled TO subscribe The rail-
road stocks are In most cases selling too high.