Evening star., 1901-08-27
Strong Opening in Stock Followed
by Sharp Break.
DRIVE At WESTERN SPECTATORS
Punishment for Selling Steel
Stocks on Strike News.
GENERAL MARKET REPORTS
Special Dispatch to The Evening Star.

Special Dispatch to The Evening Star.
NEW YORK, August 27.-opening prices
this morning were generally steady at frac-
tional advances and were well sustained
during the morning hours. The most sig
nificant development of the day, however.
was sudden reaction during the early
afternoon in which prices yielded from /
to ~ per cent under big selling. Profit
taking by leading interests was credited
with starting the decline, and later the
room offered stocks down I'm the hope OF
catching stop orders.
The suddenness of the reaction was some
thing of a surprise. since 1t was counter to
all the routine news developments of the
day. Earnings were generally good some
splendid increases being reported partic-
ularly in Atchison, in which a net increase
of s662. eco for the month Of July was re-
ported
An important meeting of Union Pacific
directors is expected tomorrow, and some
signiflcant changes in the directory are not
unlikely. This fact, taken in connection
with the probable discussion of Southern
Pacihc's affairs and the financing of the
Northern Pacific transactions. should bring
all the stocks concerned into new prom
inence.
Pennsylvania and New York Central were
strong features OF the morning under a
conservative demand, in which commission
mousse business was conspicuous. An in
crease in eastern traffic and special inside
developments were urged in explanation of
the buying. A general refinaneing of the
junior Vanderbilt issues is being canvassed
In influential circles and serves to attract
speculative interest to that group.
Louisville and Nashville was strong under
falr demand. in which a closer traffic
agreement with Southern Railway was used
as the incentive. The coal stocks were
strong during the morning, but the selling
IN them during the reactionary period was
hf,,sre sf..-
group withstood the selling remarkably
well.
The street has theory that the western
operators who sold so persistenty on the
news OF the steel strike when the outcome
ives more in doubt than at present have
covered short stocks, and have recently gone
heavily long of the market. In order to
discipline such operators for the increased
dlfncultles imposed upon the supporting in
terest while the fate of the strike was in
the balance, the stocks sold to the west
came from that supporting interest. and
arc now being marked down in price
In narrow market theories of this kind
are numerous, but the real trouble with all
narrow markets is the fact that public in
terest is wanting.
Today's decline reflected the presence of
a nervous interest in the long account
which could not stand the shock of l per
cent decline. A goodly sprinking of stop
orders We're under the market and once
they were located efforts to catch them
were devised.
Experienced traders are familiar with
the almost certain prospect of having a
stop order caught, and the device Is rarely
resorted to outside of commission houses.
The decline today justifes the view that
the real rise from the recent level will
have numerous false starts, and that no
haste Is necessary. The banking interest
buys or declines only, and similar policy
should prove profitable to the average
dealer The final trading was again pro-
fessional, and the closing was at net de-
clines In nearly every instance