The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-15
HE 1ND1ANAPoLIs JOURNAL wEDNEsDAY. April 15 1908
GOOD RALLY in STOCKS
UNEASINEsS OVER ANTI-MERGER
DECISION IS SWEPT AWAY.
London n Heavy Buyer on Arbitrage
Account-Price Changes I'm North
ern Securities on the Curb.

NEW YORK, April 1.-THE downward
course of stock prices was turned to-day
by the influential support in the face OF
continued heavy liquidation at the open
ing. When the heavy outpouring of stocks
was once stopped the bears began to look
about for stocks to cover their short con-
tracts. In the early stages Of the recovery
this was done in a very leisurely and in
different manner, but towards the end of
the day the buying for bear account to COW
er became decidedly urgent. The turn
against the short account was furthered
by the circulation of a rumor just before
the close that several alternative plans of
reorganization for the Northern Securities
Company had been devised and would be
laid before the authorities at Washington
with the purpose of compromising the
governments suit against the company by
arranging a status to conform with the
law and thus avoid an appeal Of the case
to the Supreme Court. AS soon
as this story could be brought
to the attention Of the dominant
power, the Northern Securities Company,
it was promptly denied but the denial did
not reach the floor of the Stock Exchange
before the close, so that the alarm Of the
bears was unallayed. Previous to that
time there was a marked decrease in the
volume of business, as prices advanced.
and there was little inclination to follow
the advance on the part Of buyers.
The tone OF the market during the open
ing struggle between the speculative parties
on the exchange was extremely feverish
Ing constantly met with heavy selling,
while at the declines the buying orders
were executed with increasing determine
ton. A substantial recovery In Northern
a q
subsequent relapse to near last nights
level, had quick sympathetic response on
the Stock Stock Exchange and final
steadier tone Of speculation on the
exchange. Final prices Of the
principal active stocks we're from one to
don did its first trading in stocks this
morning, since the announcement Of the
Northern Securities decision and the break
In Americans there this morning. although
down to last nights closing level here.
The declines therefore gave inviting OPP
portunities for buying on arbitrage &C
on that account.
With the rally in prices there was a
CHARACTERISTIC change in the stock mar
cision and its consequences. A confident
assurance was INDUCED in that Northern
Pacific and Great Northern had not been
involved in destructive competition before
,
and were not likely to begin it with the
possible dissolution Of the corporation. 1t
was recalled that the company was a hold
ing device to facilitate control rather
than to avoid competition. With the pres
ent conditions there is not so much So
licitude felt about leaving railroads out
over night, even where an effective minor
ity holding constitutes the control. 1t has
become doubtful also whether recently con-
templated mergers would have been COM
pleted in any event by reason of the con-
gested condition of the securities market.
1t is considered questionable, in view of
later developments, whether even the Bur-
| lington purchase would be pushed to a
conclusion if 1t remained to be done at
this time. The extreme alarm regarding
the consequences of the Northern Secur-
tiles decision, which was SO prevalent
yesterday, was thus quite absent to-day.
Very little attention was given to any other
consideration in the days recovery.
Bonds rallied sharply in sympathy with
stocks Total sales, at par value, were
$3245.OO0. United States bonds were all un-
changed on the last call.
Following are the days share sales and
| the recorded price changes.