Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-05-09
Bull AND BEAR PANCS
NORTHERN PACIFIC TUMBLE
WAS THE IMPELLING CAUSE OF
HEAVY SALES IN MANY 9TH
Err STOCKS.
(By Associated Press.l


Northern Pacific was the impelling
cause of the demoralized rush to sell
other stocks which was held in check
| for a time after the astounding open
| ing in Northern Pacific, but which gain
| ed almost panic force in the late tracing.
| Prices were not toppled over as a direct
result of calling of loans and forced
| liquidation. such as often eliminate
period of over-speculation, although
| there was a very general broadening OF
margins and added severity in the scru-
tiny of collateral, as was Inevitable IN
| the uneasy conditions prevailing, but 1t
was evident that the holders OF long
stock were holding their stocks tena-
ciously and were waiting to be actually
forced out. The punishment which was
being inflicted on the shorts in North
ern Pacific was SO distressing an exam
pie as to keep the bears in timid frame
Of mind and they shesItated to attack
| the market. The support which came
in on the opening dip helped to en-
courage the bulls and intimidate the
bears, but the liquidation seemed so
large that the bears took courage and
attacked the market after midday and
secured rich returns. AS the recession
in prices reached the ten point line the
decline gathered force, showing the dis
lodging Of long lines of long stock by
the wiping out of margins. A scrutiny
Of a stock table will show the large
number of stocks whose declines eX-
tended to between 10 and 20 points,
with the resulting wiping out of the
ordinary margin. The chaotic condi-
ton into which the market was thrown
became alarming in the afternoon, but
the determined support which developed
and the resultant rallies, which reached
as much as points in one or two in
stances took away the effect to par
tial extent of the disorderly drop in
prices and even induced expressions
from some of the more confident bulls
that the heath of the market was
greatly improved as result of the
days happenings. The apparently un-
limited buying orders which appeared
in United States Steel preferred when
the decline had reached u points and
the resulting rally of S1a points gave
some of the bull spectators the cour-
age to claim that the days reaction was
really engineered by the powerful finan-
cial interests which have been behind
the bull market throughout with de-
sire to shake off weak followers and
that it was not out of proportion to the
unprecedented advances which had pre-
| coded it, to the unqualified conditions
which at present obtain in this country
| and to the prodiguous dimensions of the
| market and of the forces which have
been at work in it, 1t is the contrary
view that collapses such as that of to-
day do not tend to attract new buying
demand by sucn reasoning as that
prices are more attractive at lower
prices. Any one seeking to explain to-
days movement will have to go back
over period of many weeks and for
every suggestion of a great financial
combination or consolidation, he will
nave to suppose deep seated doubt or
apprehension such as was shown by
the disclosures of this morning in
Northern Pacific. 1t came with a chilly
shock to the speculation that the coun-
trys great financial forces which it was
supposed We're earnestly working in ac-
cora TO secure community of interests
IN the whole railroad world were in fact
arrayed against each other in measures
OF bitter retaliation and antipathy. The
Burlington deal, on which such far
reaching conclusions have been based
by the spectators was seen to be in
Jeopardy. 1t was learned that the level
TO which prices had attained had induc-
ca insiders presumably best posted on
the value of their properties. to sell suf
ficient holdings to endanger their CON
troll.
This explanation of the competitive
ouylng winch has induced some of the
recent sensational advances threw doubt
upon the whole series of rumors of
pans for great consultations and
trahscontlnental combinations among
the railroads. In other words the broad
animation was carried by the disclos-
ures growing out of the Northern Pa
cine development that the recent buy
ing OF stocks was for the most part
wholly speculative and without the
supposed basis investment purposes.
ADD TO this the growing constructions
OF the money supply, continued insati-
able demands from the stock specula-
tlon lnroads upon the narrow bank sur
Plus by the taking UP of the revenue
surplus OF the government, a further
Shipment OF gold to Europe to-day and
| growing uneasiness among money lend
ers as to the stability of values to the
securities which they hold as collateral
and the delicacy of the position is cas-
lily seen. 1t is not surprising, there
fore, that the shock of the Northern
Pacific episode coming upon this sit
uatlon toppled prices over. Northern
Paeific's sky rocket course this morn
ing to $50, compared with 14315 at last
nights close and 1872 for the London
parity this morning is almost unpre-
| cedented for short time movements in
the local stock market This stock was
up TO that figure and back to the open
ing figure of 155 within Is minutes. It
went as low as las afterward and as
high again as 10, closing at 100. The
| close corner into which the shorts were
crowded OF course explained this move
ment. Among the severest sufferers in
the afternoon slump may be mention
ed St Paul, which fell 1874; Union Pa
cifc 1712; Rock Island IA; Missouri
Pacific Is; United States Steel pfd. u;
Delaware & Hudson 10; Amalgamated
Copper 12A: Pullman lis: Illinois
Central IL, Burlington 107s; Brooklyn
Rapid Transit 1919; Kansas & Texas
10; Western Union 10 and other stocks
all the way UP to 10 points. The final
rally reduced most of these losses con-
siderably but the closing showed spec