The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-11
OminOus Jumps i'm Price That Re-
crn Pacific "Squeeze.''
TOUCHED 100, CLOSED At 11s
MORE SHARES SOLD IN THREE DAYS
THAN THE CAPITALIZATION.
Many Guesses as to the Cause of the
Extraordinary Movement-MOney
Market Very Sensitive.

NEW YORK, April 10-There was a very
wild market for Louisville & Nashville to-
day and the ominous jumps made by the
price in it's conclusive advance to 100 this
morning aroused unpleasant memories of
May last year when Northern Pacific was
cornered, precipitating the severest panic
iii the history of the Stock Exchange.
Many of the active operators in Louisville
& Nashville on the rise have fostered the
supposition that distressed short interest
was aimed at by the campaign. The dis
position to buy stocks was suddenly cooled
and a preference for the selling side de-
veloped. The disposition to sell was in
creased by another furry in the money
market during the afternoon, and the
selling movement spread throughout the
list, carrying prices of the active stocks
very generally between one and two points
under last night. Stocks which had been
conspicuous for strength, notably Southern
Railway and Missouri Pacific, did not
escape damage to this extent In some
cases the losses considerably exceeded
these limits. Louisville alone of the prom
inent stocks continued to show feverish
strength, rebounding from each successive
reaction. There was some covering by
professional shorts before the close, but
the selling was actively renewed and the
closing was irregular and not far from the
lowest.
The action of Louisville seemed to in
dictate that a short interest in the stock
was feeling considerable distress to main
tain its position. The Wall street SUPPOSE
/ ton is plausible that the disposition of the
S50O0,00O new stock authorized involved
! short interest in the market technically,
| necessitating borrowing of the stock sold
until the Stock Exchange authorities ad-
nit the new stock to the list. Reports of
! buying for control by competing COM
panies, or of intending consultations have
| all met with official denials. AS a tactical
| speculative measure for melting specula-
i ton elsewhere in the market, the wild
/ movement in Louisville is demonstrably
/ failure.
During the first hour to-day over one
/ quarter of the total capital stock of the
/ company changed hands and dealings for
| the day amounted to over half the capital
| ization. Within three days the number of
/ shares sold has been many thousands in
/ excess of the total capitalization of the
| company. The highly speculative charac-
/ ter of the movement is therefore, clear.
! The dealings in Southern Railway con-
! tinued very large to-day in accordance
] with the hypothesis of a contest for con-
/ troll between the two companies. but it
made no progress upward and shared in
/ the late reaction. The rise in Missouri
! Pacific was ascribed to pool operations
| based on the evident working out of extern
sions for the Gould system.
] The sensitive condition of the money
market was emphasized by to-days an
| nOuncement of a huge combination in the
| hardware trade, the undertaking by Amer
| lean capital to finance the London traction
! Improvement. and the purchase by New
| York capitalists of the Choctaw Oklahoma
& Gulf Railway, all promising syndicate
requirements for credits. Foreign exchange
| declined further, indicating further bor-
| rowing of foreign capital, and obviating
! the chance OF further immediate gold ex-
| ports. Probably some of the late selling
l-fr 81.
| expectation of the government crop report
! after the closing.
The bond market yielded to realizing in
| sympathy with stocks and became irregu-
lar after notable strength in the recently
active speculative issues. Total sales at
par value $4,975,0 600. United States fves adj
vanced y per cent. on the last call.
Following are the days share sales and
the recorded price changes: