The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-05-30
FUTILE ATTEMPT OF BULLS
TO STRENGTHEN MARKET.
AFTER STEADY OPENING
WEAK SPOTS DEVELOP.
Favorable News Seems to Be Ig-
nored Whenever the Bears
I. Start q Raid.

| New York. May 9.-There was a brief
show OF strength In this mornings stock
market. but weak spots soon developed. and
the later trading became apathetic. and at
the last stagnant.
The opening rise was helped by London.
especially by a considerably rally in Rio
Tintos and a recovery In the copper mar
ket. As considerable importance was at
tached to yesterdays london selling, which
was supposed 10 be due 10 an embarrass-
ment OF the shor; side of cotton and on the
long side OF copper. this action OF the Lon
don marke. was considered significant.
AmaiEarated Copper started upwards in
sympathy.
In view Of this tendency Of the market
and the inminence Of a two days holiday,
the bear interests showed a disposition 10
cover their short contracts. The two-day
holiday here will be foilowed by the regula,
W~hitsuntids holidays on foreign exchanges.
go that the pressure Of any sudden news de-
velopment would be concentrated on the
New 1ock stock market on Monday.
EASY TO COVER
But when the bears started TO cover they
found Il so easy TO secure stock, owing TO
the increase in offerings as the price level
49, A-N S"N- 90 hsA!2i
samated Copper was clearly under pressure
of continued liquidation. which Tas at
trieuted. as was that OF yesterday. TO the
unloading OF pool account in, the stock. The
price went a sharp fraction lower than yes
terday's low point. but met some support
and rallied over a point.
There was renewed selling on a large scale
OF Rock Island. and later in the day Union
PACIFIC and Southern Pacific suffered re-
newed declines. the former touching a new
low level for the movement.
Thoya NOE lfr fla pau-S NJ account Of thu ar-
ton of the market. The bank statement
was regarded as negatively favorable. mas
much as there was no impairment of re-
sources. but the small contraction in the
lean account. IN view of the weeks extern
sive liquidation in stocks. was a diSappoint-
ment. II is evident that the loans paid OF
taken up BY other requirements. of which
the public is not informed. The weeks re-
served TO about offset the outso OF gold ex-
ports and otherwise
GOLD EXPORTS.
The conviction is general that a large out
ward movement OF gold from New York 10
still to AXE place. The fear OF a strike OF
freight handlers on Western railroads con-
tinued TO overhang the market and was
supposed TO account for the special pressure
OF. the curb also sold down TO within a
fraction OF the low level on the movement.
The gains Of the morning were quite gen.
=. III "lfSu put Ch tiiC IOdSkiOi. OhC -
these was in Leather preferred. which moved
up rs on the plan for funding the deferred
dividend on the preferred stock. The mar
ket closed lifeless and not far from the low
level.
The bono market was irregular. Total
sales. par value. $4,000 Persistent ana
been the feature Of the stock market this
week. Both TIE source and motive for SELL
ing have been envsloped mystery. Suppo-
cia' necessities of the holders rather than
to conditions affecting the properties whose
shares were sold. or 10 conditions IN the
general business situation were rather well
con ed.
The professional bears stood always ready
to seize an advantage from the signs OF
vulnerability in the market. and their at
tacks played an important part in forcing
the declines. But the declines were uni
formly effective in dislodging stock by wip-
orders. and so justified themselves from a
tactical standpoint
BEAR TACTICS.
The freedom of the bear selling gave
hopes Of the accumulation OF al effective
short interest. and kept attention awake
for signs OF a echnical rally. but each
false start for an inward turn served to
asgravate the Encouragement Of holders Of
stocks. and to deter potential buyers from
general outlook naturally declined in hope
fulness with the extension Of the fall in
prices. The conviction was quite general
that much of the selling came from large
capitalists for the purpose OF protecting
their commitments in outside business ven
tdres and their holdings in securities for
~ shssc 5hefe Is no 10 Present a%nd maTnet; o, tn.
new Pennsylvania stock issue and the re-
quirements revealed in the official announce
ment Of the plan Of rsSsga1iaasion Of the
cited as examples OF such possible needs
The moral effect OF the Pennsylvania UNI
derwriting incident has been pronounced on
the whole market situation. The necessity
for. a resort to a bankers syndicate to un-
derwrite a stock issue of one Of the coun-
try's foremost railroad companies. offered
to stockholders on terms that were intend
ed as a valuable privilege, has made a deep
impression of the lack of absorptive power
in the securities market.
PENNSYLVANIA UNDERWRITING.
There is no doubt that the underwriting
project had a. part Of its purpose to re-
assure sentiment and encourage the sub
scrip.ion TO the stock by others than the
the stock after the underwriting had been
announced there. created a correspondingly
bad Impression. The Official report accom-
s sanS,uSd tine e Gtan aG5 rnods she a4ae1,e Of fh .he
acter Of that plan. with its substitution Of
stock issues for previous bond holdings and
,.s asses resTsd 81 10 pt disuuie. ns sss fe eyspSalo Of
shareholders over the whole situation Of
Industrial combinations, and their inan-
cling.
Considerations which have held weight for
some time past. continued in force. such as
the outgo Of gold and the problem Of the
money markets. the high price for cotton
and the resulting restraint on
demand. the reactionary tendency in the
pig iron market. the delayed planting OF the
corn crop and especially the widespread dis
turhances among wage workers.
The hostile position between the Gould
and the Pennsylvania Railroad interests
is a weakening influence in itself and has
eStS.
FAVORABLE NEWS IGNORED.
Any news of a favorable import has been
consistently ignored. Improved net earnings
for railroads in April. the sustained level OF
the large volume Of bank clearings the coun-
try over. and the favorable reports Of the
condition OF the great winter wheat crop
have been powerless to induce buying Of Sc
~curities, although they have sustained con-
hdence in the general maintenance OF pros
perity in the country
The possibility OF an approaching indus
trial reaction has not lacked discussion.
in the prevailing depression Of the
financial mood.
selling here and there, but has been more
irregular than stocks. United States Is de-
clined 4. and the new Is. coupons. advanced
Il per cent, as compared with the closing
cali Of last week.
Chicago stock Market.
Reported by c. H.. Walker & Co.. No. SO North
Close BIG, Ask.
Diamond Match Of Observation-Disclosures 'I,s
National Biscuit Co. ssas