The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-04
HOPES DASHED TO EARTH
SETBACK TO OPTIMISTIC VIEWS IN
THE STOCK MARKET.
Decline in AmaIgamated Copper an
Effective Factor in RecessfOn-
Money Market Is Easy.

NEW YORK, Feb. 3.-The professional
element among the stock operators showed
a rather hopeful spirit this morning and
started with some confidence to buy the
transcontinental railroad stocks. The
movement seemed to be based on the as
sumption that the Supreme Court would
hand down it's decision to-day in the
Northern Securities Company case. for
within half an hour after the time for the
sitting of the court the mornings gains in
these stocks had been wiped out. The deal
ings in Southern Pacific were especially
large and gave evidence of operations by a
speculative pool. The buying of the stock
is ostensibly based on the expectation OF
an early r~efunding of large issues of bonds
bearing a high rate of interest, and which
mature in the next few years. The fnan-
cial district was flooded with very optimis-
tic estimates of the current earnings of the
road. The price was carried at one time
IL over Saturday. but it Jared little better
than the other Pacific in the reactionary
movement and closed with a net gain of Is.
There were very heavy dealings, also, in
st. Paul and Union Pacific, but their gains
were entirely wiped out. Efforts were made
TO revive the market by inaugurating a
movement in the ~coalers. Lackawanna
spurted 14A, very little stock coming out.
Rumors were revived that the company's
stock is to be doubled, with valuable rights
to present holders. The dealings in Anal
gated Copper were on an enormous scale,
the number Of shares sold being about the
largest for a single-day in the history Of
the stock. 1t was under pressure through
out. with occasional rallies, and late in the
day fell more than 8 points under Satur-
day, closing with a net loss of 2B. Profit
taking was an important element in the
weakness of the stock, but there was a dis
position to discredit recent rumors of a
combination with other copper producers.
The weakness of this stock did not affect
the early rise in the ranscontinentals but
its depressing influence gained force later
In the day. The favorable statement of net
earnings for December was responsible for
strength in the Minneapolis, ST. Paul &
Sault Ste. Marie stocks, the common rising
rs and the preferred ga, with final reac-
tiOns of about a point. Weakness i'm Met
ropolitan Traction was attributed to re-
ports or an early retirement from business
OF one OF the company's large capitalists.
The large increase in loans by the banks
last week was the subject of much discus
sion, without throwing much light on the
uses for which the borrowed money was
designed. The fact that nearly $40, 900, eco
OF the increase, or half of the total, was
made by two of the leading banks in the
clearing house., which are affiliated with
the financial power which originated most
OF the great combinations last year. en-
couraged the supposition that large syndi-
cate operations and possibly new projects
are in hand. The sudden and unexpected
declaration and disbursement of a 1 per
cent. dividend on Northern Securities stock
might account for part of the loans. al
though the public is ignortant of what
volume of this stock has been exchanged
for that Of the constituent companies. Sub
scrlptions to a number OF new railroad
bond issues might also be responsible. The
money market continued easy, nOtwith-
standing the expectation that the outward
movement of gold is to be renewed. In
fact, the ease of the money market is the
permissive factor in the export Of gold.
Railroad bonds were moderately active
and irregular. Total sales, at par value.
were $4,245. 900. United States Bonds were
all unchanged on the last call.
Following are the days share sales and
the recorded price changes: