The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-08-09
HIGHER STOCK TREND
BRISK OPENING OF THE MARKET,
WHICH is NOT SUS-
TANNED
REACTIONS LOSE LITTLE
TIME IN SETTING IN
Hooking Valley Not Only Loses Its Open
ing Rise, but All of Thursdays Sensa-
tional Gain as Well-Southern Group
Continues Monopoiizing Attention.

NEW YORK, Aug. S.-Efforts were
made today to shift speculative inter-
ests into new quarters of the market
The opening dealings showed that the
glamor of the supposed plan for merger
of Southern trunk line railroads had
taken hold upon the imagination of the
speculative world, and most of the stocks
which were violently affected yesterday
started off on fresh upward movement
today. But it also became quickly evil
dent that the movement was overrunning
itself. Either the desire to take prof1ts
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-
stock not only lost its opening rise of
| this morning, but all of yesterdays SEN
sational gain as we'll
The movement was not so violent in
other stocks, although Rock Island de-
veloped a heavy tone, and Colorado Fuel
became weak, with considerable Sentl-
mental effect. upon the general list. 1t
cannot be said that the reaction in the
Southern group materially altered the
general eviction in the street that i'm
portant developments are imlJ nding re-
countered by Louisville in its advance
above $50 was attributed to the fact that
that is the figure at which the option is
supposed to be held by J. P. Morgan &
Where Disappointment Entered.
Some of the largest selling of the
Southern trunk lines was by brokers US
ually employed by the speculative leader
who publicly proclaimed .'bullishness
was a forerunner of yesterdays violent
advances. Probably, some disappointment
was felt because the official announce
ment of the acquisition of the Chicago &
Francisco contained no reference to the
further extensive projects which are sup
posed to lie back of that operation.
In fact, no official countenance could be
secured from any source of yesterday s
many rumors. The belief was held that
this and other important projects may
have to wait the return of Mr.. j. 2. Nor
gan, now on his way here from Europe.
Among the new points of strength the
most conspicuous and most influential
was that in the Erie stocks. No reason
was forthcoming tor their advance be
yond a revival of old rumors OF large
holdings in the property by J. J. Hill and
plans for its Improvement by that cap
italiSt
The rise in Amalgamated Copper seem
ed to be purely speculative in its origin.
Other points of strength were the Col
orado & Southern stocks, Texas & Pa
ciffc and a number of minor Jocks. The
banks have not gained enough from the
interior to offset the drain to the sub
treasury and a poor bank return is indi-
Gated. This and the holiday prompted
to realize late in the day and the closing
was dull and Irregular
The bond market was dull and irreg-
ular. Total sales, par value, $1,l75,OOO.
Whole Week Rounded Up.
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 them
selves of the coronation of the King of
England on Saturday as an occasion for
with practical unanin1ity to close the
exchange. After this action had been
taken the market sprang into activity
again and by Thursday the volume of
dealings had again risen to well above
500. 900 shares. The fact that the awak-
ening was coincident with the return to
putative leader of all the speculative
movements that have recently occurred
did not escape notice and comment, and
the public outgivslgs of this leader OF
enthusiastic confidence in higher prices
for the future warranted an inferelGe
that his own operations in the market
were shaped to that end.
Some of the most violent movements
were in stocks which this leader and his
following have been conspicuous and sue
cessful operators in the past and in
which their continuing interest is aVOwed.
These price movements have been &C
companied by a flood of rumors which
may be either cause or effect, but which
have bearing on the stock market stu
alton in any event.
Important Developments Pending.
Inc Official announcement or even aQ-
mission on the subject has been meager,
but there is a general credence in the
theory that important developments are
impending looking to the consolidation of
interests in the Southern Trunk Line
field. The only accomplished fact of the
week upon which to hang the theory
was the formal announcement Of the plan
to take over the Chicago & Eastern IL
linois by the st. Louis & San Francisco.
This and the recent reaching out by the
st. Louis & San Francisco 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 show
ing depression, were buoyant in the mar
ket and the speculative public promptly
formed the inference that relations were
to be harmonized throughout that field.
This impression was strengthened by the
welldefned fumorS that st. Louis &
San Francisco was to acquire the Cen
trail of Georgia railway and by the large
and urgent demand which arose for the
securities of that company. The well un-
derstood fact that the Georgia system is
securely controlled in the interest of the
conjecture that the new order of things
was due to a friendly understanding at
least and perhaps to plan for uniTica-
ton.
Plans Of Unification.
The manner in which the seemingly ac-
cidental passing of control and cornering
in the market OF the Louisville & Nash
vile had resulted in the final Judgment
of control of that system in hands identi-
cal with the control of the Southern
railway was recalled to corroborate the
impression of the working out of COM
prehenSive plans of unincation in that
field. The subsequent joint requirement
by those railroads Of the Chicago, In
dianapolis Sc Louisville was further evil
dence in the same direction. The sup
posed complaiSance shown by the South
ern 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 ulti-
mate control of the new system
This would leave the Illinois Central and
some of its supposed plans for expansion
on one side. 1t had been supposed that
Chicago & Eastern. Illinois was destined
for ultimate absorption by Illinois Cen
trail 1t will be seen therefore that the
fabric of possibilities built up by Wall
street surmises up to this point threat
ened to bring into array against each
others interests once more the same
powers that were in coflict early last
year in the trans continental field gen
orally distinguished as the Morgan and
Hartman parties Wall street has been
quick to finish its structure Of surmise
by theory that these powers had grown
too wise to repeat the destructive strug-
gle of last year and were to unite in adj
1usting the control of the Southern trunk
line territory.
Authority But Meager.
This is the substance of the causes of
the revival of speculation in Wall street
a "a far Yf rNH IT, Il