The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-05-08
STRUGGLE FOR CONTROL
ADDS % 1-2 POINTS TO THE PRICE
OF NORTHERN PACIFIC.
Late md Severe Break Ovcrcomes a
Generally Buoyant Feeling-LOcaI
Trade in Strong Position.

AT New York yesterday money on call
was firm at 5}sql0 per cent; last loan, per
cent: ruling rate per cent.
Prime mercantile paper, f@41s per cent.
Sterling exchange was heavy, with actual
business in bankers bills at $i.S75sGI4.S72t for
demand and $4.s4i4m4.s4ss for sixty days;
posted rates. s4.S504S6 and $4SS1k64S9; COM
mercial bills, si.S3A G4S4A.
Silver certificates were Coo; bar silver,
6Oc; Mexican dollars, 4S1zc. Silver bars
were 275sd ounce in London.
Yesterdays stock market showed all the
gradations of sentiment from buoyant at
the opening to disorderly alarm verging on
generalization in the latter part of the
day. The market hinged almost entirely
on Northern Pacific. The extraordinary de-
mand for that stock continued and it al
most duplicated Mondays rise, advancing
an extreme 22i4, compared with % on Mon
day. In the early dealings this strength
retained part of its sympathetic influence
on the general market, but it steadily lost
that influence. The reason for the rise ex-
ertins depressing influence on the rest of
the market was shrouded in as much mys-
terry as the whole movement has been
AS tne DAY drew towards the close rumors
began 10 gain currency that the enormous
demand for this stock of the last few days
was the result of a desperate effort to re-
gain control on the part of insiders. The
supposltlon is that the recent effort TO Sc
cure control of Union Pacific led to a re-
tanatory movement on the part of the
powerful capitalists who control Union Pa
cine 10 embarrass the Northern Pacific in
tereStS with an enforced contest to main
tain their control. The success of the plan
must be admitted If such a struggle is real
ly the cause of the buying in Northern Pa
clhc The brokers employed in the buying
serve az some corroboration for such a
supposition. A house credited with buying
zOO,OOO shares on Monday was a buyer of
tens of thousands of shares yesterday and
was at the same time lending out the stock
for the benefit of the shorts to an amount
estimated at 100000 shares, thus striving to
allay the alarm of the short interest and
oiscouraging the hypothesis that the buy
ing movement designed for a squeeze
against the shorts. The appearances rather
went to show that the snorJ interest was
among the insiders. There were fears that
the collapse 10 follow the volatile rise in
Northern Pacific would unfavorably affect
the whole stock market. The rumors re-
garding Northern Pacific did not begin TO
take this form until late in the day. Re-
ports that the preferred stock was TO have
the option of exchange with the common
stock and so do away with its prior claims
sent Northern Pacific preferred up over 10
points Canadian Pacific continued its ad-
vance the theory that its prospective
control by Northern Pacific gave the lat
ter stock its strength Union Pacific was
run UP TO 1902 in an attempt on the part
|
mensurate with Northern Pacific. The
opening gains from to points pretty
generally and from B TO points in Sugar
and Union Pacific. The quick inroads made
upon those prices by realizing and the i'm
pairment of the buying power discouraged
the continuance N the speculation for the
rise The higher rate for money and the
demands by brokers for larger margins
also had a representative influence on spec
ulation. The late selling was enhanced by
the encouragement of timid holders who
are only willing TO hold on rise. The
break at the last was severe, reaching 81.
in Northern Pacific SiR in st. Paul, in
Union Pacific, ga in Rock Island, in Bal
timore & Ohio and between and points
in the large majority of the list. The
United States Steel stocks were again un-
der pressure throughout. and the current
gossip attributed this to shifting of steel
stocks into railroads. Prices closed above
the lowest, as bears took quick profits, but
the closing undertone was distinctly weak
The bond market was quite active and
irregular. Total sales at par value were
S.. 600. United States fives declined \.
and the threes "a per cent on the last call.
Following are the days share sales and
the closing bid prices: