The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-07-10
SHARP BREAK in STOCKS
NEW YORK CENTRAL LEADS WITH A
DECLINE OF FOUR POINTS.
United States Stcel1AIso d Factor in
the Observation-Disclosures Condi-
tions Are Unsatisfactory.

NEW YORK, July 9.-The stock market
developed rather acute weakness to-day
and the volume of sales rose to more than
double the recent average. The liquida-
ton in New York Central and the con-
tinued pressure to sell United States Steel
were the disturbing factors.
There was no definite news to account
for the marked weakness of New York
Central, but the tape was regarded as
giving ground for ominous conjectures.
These took form in various surmises as to
the measures to be adopted By the corpora
quired to carry on the vast terminal and
other improvements which have been I'M
dertaken. The fact of this capital require
ment is well known and the variations in
to-day's rumors had to do simply with the
manner in raising it. There were rumors
of a projected issue Of new stock. of a bond
issue and of a temporary loan the
curity Of notes. The recent experience of
the Pennsylvania in floating it's new stock
does not offer encouragement for a similar
undertaking by other railroad corporations.
1t is borne in mind that the New York
Central stockholders have authorized near
ly slS.OO0.OOO of stock, which it lies with the
directors to issue. 1t is also fact that
sl00,0OOO00 authorized In 1897, SS5,000,O00 was
for refunding underlying bonds, while sl5.
100000 was reserved for new construction
after 1903. The market price of these bonds
never fell TO below 10l until last week,
when they sold at par and to-day they sold
ar 20, without any large blocks being mar
keted In the interval. To infer an attempt
present therefore seems unwarranted. These
conditions gave color to tO-days rumor of
negotiation of a loan of something like slS,-
he rum ca rxyfy he flI her
or interest rate TO be paid at per cent.
The usual parallels were drawn between
Pennsylvania and New York Central. which
Issues have been selling near parity, while
the former Is paying per cent, with the
foatation of its new stock achieved. and
the latter is paying 5 per cent. dividends,
with the new capital requirements yet TO
be met. The downward plunge of nearly
four points in New York Central was the
event on which the whole market hinged.
Selling of the steel stocks was aggravated
by the Iron Ages showing of Increased
| blast furnace capacity on July ], the In
creasing rate of accumulation OF pig iron
ket. Pig iron was marked down during the
| day and rumors were current OF a cut In
steel billets at Pittsburg. United states
Steel sold within fraction of its low
record level and the second fives sold Is
lower than ever before.
The announcement just before the close
of the market of the engagement of 81
100000 Of gold for export ON Saturday helped
the late weakness. With the movement Of
| currency from the interior arrested and
with loss indicated already TO the sub
| treasury of s2.4Ss.00O. including payments
| for gold exported, and a surplus reserve
| last Saturday Of less than 100000 In the
banks, the influence of the further gold
| outgo reported may be understood. The
| continued drain on New York banks Is in
strong contrast to the prompt and enor-
nous recuperation shown by the Bank OF
| England and the Bank of France In their
weekly statement to-day following the semi
/ annual settlements.
| declines were scored in some inactive
| mortgages. Southern Railway, st. LOWS
| division, tours, dropped ga. Total sales, at
| par value, were 81, SIS, 000 United States twos
| advanced H. and the threes, old fours and
| fves u per cent. on the last call
| Following are the days share sales and
| the recorded price changes: