The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-14
NO STABILITY TO TRADE
STOCK MARKET HAS BEEN VERY
NERVOUS AND ERRATIC.
l.. & -. Furnished the Sensational
Feature OF the transformations
i'm the Money Market.

NEW YORK, April 12.-The situation
centering about Louisville < Nashville was
the subject of keen interest in Wall street
to-day and kept the market feverish and
unsettled. The jump of over ten points in
Chicago & Eastern Illinois and the rise in
Evansville & Terre Haute revived rumors
of projects for Chicago outlet for Louis
vile, and the conferences in progress and
known TO the street strengthened the i'm
preston Of an impending parting control of
Louisville & Nashville itself. There was
renewal of the activity and strength in
Colorado Southern. which was attributed
to the working out of plans for the extern
sion OF the Rock Island connections, ind-
Gated by the purchase of the Choctaw,
Oklahoma & Gulf. Otherwise the principal
strength was in specialties. The buoyant
rise of Canadian Pacific to 40, with re-
lapse of a point, was not explained The
strength of the various rubber stocks was
due TO reports of proposed mergers, as were
the movements in Virginia Carolina Chem
ical and Cotton Oil. The rise of over four
points in international Power was due TO
the expectation of stock subscription rights.
The strength of the market was not gen
eral, and the advance after the bank state
ment was met by realizing, so that the
close was irregular. The cash changes in
the bank statement conformed closely to
the estimates. The loan decrease was larger
even than hoped for. but the knowledge
that large loans were transferred to, the
trust companies and to foreign lenders
left the outlook for money by no means
clear.
There was a remarkably feverish and err
rLraf icI,
trlDuted In Wall street TO the speculative
operations or a group of wealthy men who
nave reanzed great fortunes in the iron
ana steel trade and who were controlling
factors in the constituent companies of the
United States Steel Corporation before the
formation of that concern. The upward
course or prices which was established last
week was interrupted on Monday by the
IearS OF money stringency. The large eX-
ports OF gold on Tuesdays steamer threat
ened total wiping out of the surplus re-
serve or the banks which cut down
tWc-thlrdS as a result of the transactions
OF last week The rise in the money rates
smut OF further gold exports and made it
profitable for foreign bankers to negotiate
heavy loans in foreign money markets TO
place here. The trust companies were also
large lenders at the higher level, as they
are not subject to the same legal reStric-
lions as 10 the maintenance of cash reserve
and are thus able to leave their cash on
deposit with the banks to figure in their
cash reserves while taking up the bank
loan. This feature of the local credit sltua-
ton has been the subject of some comment
and criticism in connection with the active
speculation which is fostered by the re-
sources thus made available The money
market nevertheless has been unsettled all
the week and subject TO occasional fiurries.
The leaders of the speculation seem to be
unaffected by these fiurries, and it is be-
heVed they are protected by heavy loans
on time. 1t was suspected that the early
unsettlement Of money was due partly to
the taking OF large time loans in this in
terest.
The center of speculation shifted from St
Paul and the Western group to the South
ern railway field. The movement in Louis
Vile Nashville became so sensational
that the fear arose that the circumstances
OF the Northern Pacific corner last May
might be repeated. The determined reti-
cence Of all the parties in interest as to the
actual conditions existing in the stock
added to the uncertainty. The plausible
theory advanced was that advantage had
been taken of the strength of the stock to
market the newly-authorized increase of
5000 900 of stock. The formaiity of appli-
cation and listing of a new stock issue on
the Stock Exchange requires about
months time. Meantime the new stock is
not a good delivery against sales made on
the Stock Exchange. 1t was supposed that
the speculative pool in the stock had dis
covered this technical short interest in the
market and by forcing up the price was
compelling the delivery of stock held for
control. thus threatening the absorption of
the control. The announced purpose TO ap-
ply portion of the new stock issue to the
purchase of the Atlanta, Knoxville &
Northern revealed an incurson into the ter
ritory of the Southern Railway Company
There were conjectures that control of a
road into Chicago running north Of the
Ohio river was also sought. Coupled with
the enormous dealings in the stock these
facts and surmises gave color to the suppo-
sition of a contest for control and the ac-
tivity and strength in Southern Railway as
though in sympathy, seemed a corrobora-
ton
The announcement of the purchase of the
Choctaw, Oklahoma & Gulf. and the sun
position that it was in the interest of the
Rock Island, was additional incentive to
credulity in the progress of plans for ex-.
tension OF community of interest and
strengthening of position by existing rail-
road systems. by control of outlets and
extensions. The activity and strength of
the Gould stocks were supposed to be due
to the progress of plans for completing
the systems outlet to the Atlantic coast
1t is a matter Of observation that prac-
tically all Of the railroad construction of
the present era of industrial activity is
devoted to developing and strengthening of
existing systems, rather than to the forma-
ton of new systems. IT is argued that this
tends TO insure against rivalry and de-
structive competition.
The postponement Of the British budget
statement defers the clearing up of the
foreign money situation. The announce
ment on good authority that Russia will
seek no further loan in Europe this year
removes an apprehension that the recent
loan placed in Germany, Belgium and Hol-
land merely preliminary to a large
Russian loan TO be tloated in France The
imminence of the government report on
the April 1 crop condition kept that factor
in the background in the stock market
during the week. The disappointment indi-
Gated yesterday in the grain markets was
only slightly reflected in the stock market
The speculation in stocks has been sup
plemented by an active buying of some of
the low-grade speculative bonds on which
interest payments are contingent at sharp
advances in price. United States Iwos and
old tours, registered, advanced u and the
fives l per cent. The threes, coupon de-
clined Il. compared with the closing call
price of last week.
Following are Saturdays share sales and
the recorded price changes:
High Low Closing
Stocks. Sales. est. est Bid,
Atchison pref $1,000. 500 sSA S7X az
Baltimore x Ohio...... $500 1914 1861 107if
Il. * .. pref............ .... Gee. - &c