The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-09

REACT TO LOWER LEVEL
STOCKS WHICH ADVANCED so SEN
sATIoNALLY ON THURSDAY.
Erie Securities Furnish New Points of
ACKNOWLEDGMENT and Ru-
mors of the Past Week.

NEW YORK, Aug. S.-Efforts were made
to-day to shift speculative interest into new
quarters of the market. The opening deal
ings showed that the glamour of the sup
posed plan for the merger &C Southern
trunk line railroads had taken hold on the
imagination of the speculative world and
most of the stocks which were violently
affected yesterday started off on fresh up
ward movement to-day. But it also became
quickly evident that the movement was
overrunning itself. Either the desire to
take profits or the belief that prices had
been lifted TO above the intrinsic value of
stocks led to prompt reactions in Louisville
& Nashville Illinois Central and conspicu-
ously in Hooking Valley. The last-named
stock not only lost its opening rise of this
morning, but all of yesterdays sensational
gain as well. The reaction was not so vio-
lent in other stocks, although Rock Island
developed a heavy tone and Colorado Fuel
became weak with considerable sentimental
effect on the general list. 1t cannot be said
that the reaction in the Southern group ma
terially altered the general conviction in the
street that important developments are inn
pending regarding the group The difficulty
about 80 was attributed to the fact that
that is the figure at which the option is
supposed to be held by ]. P. Morgan & Co.
to buy the control of the road. Some of the
largest selling of the Southern trunk lines
was by brokers usually employed by the
speculative leader whose publicly pro-
claimed ''bullishness" was a forerunner of
yesterdays violent advances. Probably
some disappointment was felt because the
official announcement of the acquisition OF
the Chicago Eastern illinois by the ST
Louis * San Francisco contained no reIer-
ence to the further extensive projects
which are supposed to lie back of that OPP
Grafton. In fact, official countenance
could be secured from any source or yes
terdays many rumors. Among the new
points of strength the most conspicuous
and most influential was that IN the ERIE
stocks. No reason was forthcoming for
their advance beyond a revival of the old
| rumOrs of large holdings in the property by
j. J. Hill and plans for its Improvement by
| that capitalist. The rise in Amalgamated
Copper seemed to be purely speculative in
its origin. Other points of strength were
! the Colorado & Southern stocks, Texas q
Pacific and number of minor stocks.
The banks have not gained enough from
| the interior to offset the drain 10 the sub
| treasury, and a poor bank return is indi-
| Gated. This and the holiday prompted TO
/ realizing late in the day and the closing
was dull and irregular.
The bond market dull and irregular.
| Total sales at par value were $1,175,OO0.
During the early part of this week the
| interest in the stock market had fallen
| to so low an ebb that the members of the
| Stock Exchange eagerly availed themselves
of the coronation of the King Of England
| on Saturday as an occasion for holiday
and petitOned the governors with practical
unanimity TO close the exchange. After
| this action had been taken the market
| sprang into activity again and by Thurs
day the volume, of dealings had again risen
| to We'll above half million shares. The
| fact that the awakening was coincident
| with the return to New York from vaca-
| ton trip of the speculative leader of all
| the important speculative movements that
| have recently occurred, did not escape no.
! tice and comment, and the public outgiv
| ings of this leader of enthusiastic conf
| dence in higher prices for the future war
| ranted an inference that his own operations
| in the market were shaped to that end.
| Some Of the most violent movements were
| in stocks in which this leader and his fol-
| lowing have been conspicuous and success
| full operators in the past, and in which
| their continuing interest is avowed. These
| price movements have been accompanied
| by flood OF rumOrs, which may be either
cause or effect, but which have an impor-
| tant bearing on the stock market situation
| in any event. Ofhcial announcement. or
| even admission on the subject has been
| meager, but there is a general credence in
| the theory that important developments
are pending looking TO the consolidation of
| interests in the Southern trunk line field
| The only accomplished fact of the week on
| which to hang the theory was the formal
Chicago & Eastern Illinois by the St Louis
| * San Francisco. This and the recent
| reaching out by the st. Louis & San Fran
| cisco system in other directions into the
| Southern field made it evident that there
were new relations to be adjusted in that
field Stocks of other systems which the
| new element might be supposed to threaten
| with dangerous rivalry, instead of showing
| depression, were buOyant in the market
| and the speculative public promptly formed
| the inference that relations were to be har-
| monized throughout the field
| The manner in which the seemingly acct
| dental passing of control and cornering in
the market of Louisville & Nashville had
| resulted in the final Judgment of control of
| that system in hands identical with the con-
troll of the Southern Railway was recalled
to corroborate the impression of the work.
| ing out OF comprehensive plans of unifca-
| ton in that field The subsequent Joint ac-
quirement by these railroads of the Chi
cago indianapolis & Louisville was further
| evidence In the same direction. The sup
| posed cOmplalSance shown by the Southern
Railway to the expansion plans of the st.
Louis * San Francisco was made good for
the suppoSition that the Southern Railway
powers would be found in ultimate control
also of the new system. This would leave
the Illinois Central and some of its sup
posed plans Tor expansion on one side. III
had been supposed that Chicago a. Eastern
Illinois was destined for ultimate ABSORB
ton by Illinois Central. 1t will be seen
therefore that the fabric of possibilities
| built up by Wall-street surnises up to this
| point threatened TO bring into array against
each others interests once more the same
| powers that were in conflict early last wear
| in the transcontinental field, generally dis
tinguished as the Morgan and Hartman
| parties. Wall street has been quick to fin
| ish its structure of surmiSe by a theory tina
these powers had grown too wise to repeat
the destructive struggle of last year. and
were to unite in adjusting the control Of
the Southern trunk line territory This is
the substance of the causes of the revival
of speculation in Wall street in the latter
| part Of the week which has but meageI
| authority from any official source
| There has been no development in the
money market To indicate effective relief
for the great requirements thus foreshad.
| owed. The weeks gold shipment was called
a special transaction and was attributed tC
| the working out of ustria-Hungary's cur.
| rency conversion plan. but it is expected
that this may draw some further gold from
| here. The Paris demand for gold in the
| London market also has shown signs of re.
vival. General conditions in this country
have continued highly favorable to values
| except Tor the continuance of the anthra.
cite miners strike and some threats OF
| labor troubles in other directions
, | The bond market as a rule has beer
, rather quiet and irregular for investment
I issues. although there has been an active
market for some speculative bonds United