New-York tribune., 1902-05-05
IHLgh. -. IMay B Apr 2sl lCh,ssI sales.
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
There were a number of developments in Wall
Street last week that seriously affected the own
ers of many Industrial securities of doubtful
merit. These developments, however. had no
relation to the conditions underlying money and
business and they had bearing on the value
Of securities in general. A decline Of over 100
points in International Power stock caused
entirely by speculative conditions prevailing in
that stock. while the collapse In several other
issues, representing the so-called Meyer syndi-
cate was likewise due TO factors wholly indie
pendent OF the general investment and specu-
lative situation. The crash on Friday following
the steady decline in International Power natu-
rally caused a recession in values throughout
the list. but it failed 10 disturb real values or
to induce investment liquidation. The banks
wisely adopted measures to curb reckless stock
market speculation and a consequence much
collateral on Stock Exchange loans was thrown
out, with the result of forced sales on the
board.
The higher rate for money, the uncertainty
over the anthracite coal labor situation, the
collapse in the manipulated industrials and the
forced covering of shorts in Louisville and
Nashville were factors in the week that checked
the public demand for securities and compelled
the liquidation of many commission house ac-
counts In regard Louisville and Nashville
1t appears that an imperative NtHldHu Was iS-
Gently made on several long standing short ac-
counts for a settlement. the result Of which
was sacrifice sales in other issues to make up
the losses in Louisville stock 1t viii be noticed
that the factors named are not influences bear
ing on conditions governing the actual worth
of securities in general And it Will douotless
be recognized that these factors are not perTna-
nent in character, and, therefore, not likely 10
exert an influence the stock market Tor any
length Of time. The general marke; Ia IN
strong position Stocks are well held, weak ac-
counts have been eliminated aud the founda-
tions OF the investment situation are unusually
solid.
The boom in International Power is over, and
the stock promises to rule at a level in proper
ton to its intrinsic worth. HackensacK
Meadows Dominion Securities, North American
Lumber and Pulp. Storage Power. Rutland Rail-
road and st. Lawrence and Adirondack, stocks
which have been doomed and manipulated 10
fictitious prices have gone back with mighty
fall TO a level at which some operators with
more courage than judgment may be willing TO
buy them. The whole industrial list has natu-
rally been injured by the scandalous operations
in the securities named. but the intrinsic worth
of the sound issues has not been reduced one
cent Operators who buy worthless industrial
issues deserve little sympathy, as there is am
pie opportunity to learn something OF the com
panies before investing in the issues. There are
good industrials and poor ndustrials. Invest
ment purchases Of the good industrial shares are
likely to net the buyer profitable return on his
money while the security is as safe as railroad
shares of the gilt edge variety. The collapse in
stocks last week has served the purpose or re-
moving dangerous speculation from the market,
while il has created more healthful and prom
isine Wall Street situation.
The largest holders Of good stocks apparently
are not inclined to sell at the current level Nat
urally the people who hold securities merely on
speculation know that the market will not ad-
vance indefinitely, but they evidently believe
that conditions affecting the true value Of stocks
warrant higher prices before long period Of
reaction develops. The prevailing reactionary
tendency is not likely to run out the present
week. II the crops failures this year. and II
other untoward developments arise, stock values
will doubtless seek a lower level. 1t viii be sev-
eral months before the crops reach maturity.
and three months or more before the probable
Weld can be estimated with any degree OF Ger
talnty Meanwhile ii appears probable that the
leading interests in the stock market Will work
for higher prices, with the expectation Of
gradual liquidation in the late summer and early
fall Congress elections take place in Novem-
her. and the possibility Of the election OF a
Democratic body Will Of course. be factor in
show no setback In the country's industrial
activities Railroad earnings continue heavy.
bank ciearings large and all factors in the
commercial world are in favor OF continued
prosperity.
In the current week the anthracite coal labor
situation. reports from crop centres and money
market conditions Will doubtless be leading mar
ket influences. In well Informed circles the
opinion prevails that there will be no coal strike
but the position of affairs between the miners
and operators is not altogether encouraging
Crop reports last week not bad With
sentiment in speculative circles bearish on stocks
for the time being, the weeks crop advices may
be highly oolored In favor of the advocates OF
lower prices. Money market conditions were
controlled in great part by preparations for in
terest and dividend Disbursements and by the
manipulation in stocks which led TO the calling
Of loans and the elimination OF collateral sucn
as International Power stock Despite the
known liquidation in loans the bank statement
showed further increase in this account OF over
SIOG00000 The higher rate for money will
doubtless continue for a time while later on
gold exports will be made. The foreign financial
situation shows change Of noteworthy impor-
tsnce. In the local railroad world the most i'm
portant Developments in the week the in
crease in the dividend rate Pennsylvania