The age-herald., 1901-05-08
FROM BUOYANCY ID NATURALIZATION
  0iSorderly Alarm Prevailed at Opening of Stocks NORTHERN PACIFIC FACTOR Market Closed Steady at a Net Decline of Thirteen to Nineteen Points. The South Was Perslst-
 ent Seller.
NORTHERN PACIFIC FACTOR

New York, May 7.--Today's stock mar ket showed all the gradations of senti- nent from huoyant at the opening to dis orderly alarm verging on demoralzation in the latter part of the day. The mar ket hinged almost entirely on Northern Pacific The extraordinary demand for that stock continued and it almost du- plicated yesterdays advance, advancing 22A compared with 2s yesterday. In the early dealings this strength retained part of it's sympathetic influence on the general market, but 1t steadily lost that influence. The reason for the rise exert ing a depressed influence on the rest of the market was shrouded in as much mystery as the whole movement has been As the day drew towards the close, ru- mors began to gain currency that the enormous demand for this stock for the last two days was the result of desper- ate effort to regain control on the part of insiders. The supposition is that the recent effort to get control of the Union Pacific led to A retaliatory movement on the part of the powerful capitalists who control Union Pacific to embarrass the Northern Pacific thus bringing on an en- forced contest in a way to maintain their control The success of the plan must be admitted if such struggle is really the cause of buying in Northern Pacific. The broker employed in the buying serve as some corroboration for such a position. A house which was credited with buying 100000 shares yesterday was a buyer of tens of thousands of shares today ana was at the same time emptying out the stock for the benefit of the shorts to an amount estimated at 100, 900 shares, thus striving to allay the alarm of the short interest and thus discouraging the hy- pothesis that the buying movement was designed for squeeze against the shorts. The appearances rather went to show that the short interest was among the insiders. The presumptions which might flow from the fact of such a struggle between great groups of capitalists had chilling effect on the whole speculation. For one thing 1t would point to a state of vindictiveness between interests supposed to have been working in accord. Instead of benefitting in a community of. interests 1t would Fbint to a growth of gigantic rivalry with resultant power of competition eX- ceeding anything in the railroad wars of the past. It would indicate also that the le ling financial interests which has been the conspicuous figure in all the great financial plans had been out-generalled. There were fears also that the collapse to follow the volatile rise in Northern Pacific would unfavorably affect the whole stock market
 The rumors regarding Northern Pacific did not begin to take this form until late in the day. Reports that the preferred stock was to have the option of exchange with the common stock and so doing away with it's prior claims sent Northern Pacific preferred up over 10 points. Ca- nadian Pacific continued its advance on the theory that it's prospective control by Northern Pacific gave the latter stocks its strength. Union Pacific was run up to 1aols in an attempt on the part of it's friends to rally 1t to figures com mensurate with Northern Pacific. These stocks constituted the really notable features of strength in the market after the opening bulge, which was quite gen. eral and was due to the thrush of buying orders from the now widely extended speculativ, public. These opening gains ran from l to ? points pretty generally and from ? to 4 points in Sugar and Union Pacific. The quick inroads made upon those prices by realizing and the impair ment of the buying power discouraged the continuance of the speculation for the rise. The higher rate for money and the demands by brokers for larger margins also had oppressive influence on specu- lation. The late selling was enhanced by the Encouragement of timid holders, who are only willing to hold on rise. The Dreak at the iaSt was seNeie, steachihs S% in Northern Pacific; S1z in St.. Paul, s in Union Pacific, 5A in Rock Island, in Baltimore and Ohio and between and 5 points in the large majority Of the active list. The United States Steel stocks were again under pressure throughout and the current gossip attributed this liquidation to shifting of holdings from the steel stocks into railroads Prices closed above the lowest as bears took quick profits, but the closing undertone continued distinctly weak.
 The bond market was quite active and irregular. Total sales par value s5.bSo.0O0 United States 5s declined 1s and the 3's \ per cent on the last call.