The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-14
FINANCIAL AND COMMERCIAL.
MoNpAY,.Aprii 10.

The decentralization which prevailed in
the security market to-day BY, reason Of
the decision Of tho United States Circuit
Court Of Appeals In the Northern Securities
case was not, perhaps unexpected by
experienced judges Of speculative ssnu-
ment II was, however none. the less
unreasonable. and tits the unreasmableness
OF the matter that should be emphasized
In any calm review OF to-day's events.
| Consideration Of the courts decision over
Sunday by Spectators. instead OF serving
! to quiet apprehension. seemed to heighten
It. II seemed to bc generally believed
that the final decision in the Northern
Securities case would be in entire accord
with the one rendered at st. PSul, and yet.
strange to cay. IL IL probable that II this
fact was indeed settled the market to-day
would not have been as disturbed as II
was. The element Of doubt--always the
| most unpleasant in speculative sense,
because IL is impossible TO reason with II
or in few ways to combat it-governed the
entire situation There was this additional
consideration making for lower prices
from astechnical market point OF view.
that the news Of the decision came on Thurs
day afternoon when hank loans for the
holiday had been already arranged. Many
such loans were called to-day, with the
usual market result. For the first half
hour Of business. on the Stock Exchange
prices were comparatively steady. Very
many spectators for the rise. instead OF
disposing Of their holdings ct once. placed
stop loss orders Upon them. and this fact
became known TO the large and powerful
party operating for the fall. A determined
drive against the market, therefore, speed
lily Uncovered" these stop loss orders,
and the decline in prices started. The
day. transactions seemed to close observers
about equally divided between operations
for the fall and genuine liquidation The
extreme declines recorded ranged from
~ points In American Smelling and Refn-
ing common to points in Reading. points
in Northwest and 81 points in st. Louis
and San Francisco. Atchison, Missouri
Pacific, st. Paul, Union Pacific and Texas
Pacific each declined 4 points, and this
was about the extent Of the fall In most Of
the active stocks. Inactive stocks, like
Dela~are, Lackawanna and Western and
the express stocks. fell from to 10 points.
At the close OF market fair rally in
prices was in progress. ... ..
All the days news developments were,
Of course, wholly disregarded. The ex-
trsordnary favorable condition Of the
winter wheat crop. a. indicated in the Gov
eminent report OF Friday, passed entirely
unnoticed, yet 1t would under ordinary
circumstances have advanced the prices Of
the Western railway shares very decidedly.
10 can nov be said that this great crop has
entirely passed the period OF possible win.
ter damage, and. while its condition at har-
~ Holn ;fa v,ro condition NJ
Approximate perfection, the chances are
heavily In favor Of much the largest winter
wheat production this year ever known
In the United States. This must tell in the
stock market sooner or later. Similarly,
the enormous gain In our foreign exports
for March. a. reported during the holidays,
IL q matter Of immense Importance. For
the nine months Of the fiscal year to date
our exports OF the leading articles Of mer-
chandise are now larger for the same
period than for the preceding year. These,
1t may perhaps be said. are matters which
hxve chisf concern at this time for invest
ors; but q further consideration, which
must appeal TO spectators a. well as to in
vestors, II tho prodigious fall that. has
occurred In the value Of securities, ~ meas
ured by stock market quotations. in q little
IQOfS tO1u B14 u1Oiitnb thisS. tLO
highest point seen In the elimination OF
the so-called Gates boom in the market on
Sept. ., last to the lowest point reached in
to-day's trading. prices OF the stocks most
freQuently dealt In In the market have de-
elt,sd nearly, S2St a share. The general
IAN II, the market measured in money. value
| may. be estimated at billion dollars. All
this has occurred without Q stock market
;~nL,zl <kst xhar L..
not been q single failure. In, Wall Street.
Could there be stonser testimony a. to the
Inherent strength OF business conditions?
general business has been forging ahead
a. meyer before. the only clog upon its
prosperity being the laok Of facilities for
handling 1t. The congestion OF railway
freight traffic. OF which this clog has chiefly
consisted. Is now fast disappearing. and
Trustworthy information Is that railway
net earnings will increase largely from
now on A halt has been called in syndi-
cate formations with their manufacture Of
new securities. and our railway bonds are
being purchased BY foreign investors a.
they have not been for long time pre-
viously. The liquidation that has occurred
Ia the best assurance Of relief Of tho money
eltuatlOn. AoOkou ~ again tfOfu tno uefo
position Of q stock Spectator. the very
sharp break in prices to-day, with it's ac-
companying large volume Of transactions.
coming at tho end OF 20 prolonged a period
Of sagging prices. presents all the character
btics Of the eliminating day Of declining
market. and suggests that,the 'low prices
have been touched. - ..-'t a
So far as the Northern Securities case Ii
itself concerned. 1t IL hard 70 50 how. by
any process of reasoning, the price OF ~
reached for the Northern Securities stock
on the outside market to-day does not more
than discount any reduction In the value
Of this security which has been caused by
the court decision that has been rendered.
Assuming that the very. worst that can
happen does happen, namely. dissolution
of the company. holderp OF Northern Securi-
ties stock will receive, according to the rule
laid down by Judge Thsyer, the same stock
that they originally deposited with tho
company: and the original depositors who
have sold their Northern Securities stocks
to new poessssors will simply pass along
their Northern Pacific or Great Northern
ssnrlr to the etockholders of record At the