The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-04-10
STOCK MARKET DISTURBED
BY MERGER CASE DECISION.
ADVANCE WAS CHECKED BY
cav SELLING.
All "Conmunity-of-Interest" Rail
roads Lower, Through Fear
They May Be Affected.

They May Be Affected.
New York. April s.-The unexpected an
nouncement OF the decision in the Northern
Securities case to-day threw the stock mar
ket into commotion and, put a sudden end
TO q dull but prosperous upward course OF
prices. There have been vague fears for
some time recently that the stock markets
vorable decision TO the company in this
case, but anxiety had apparently subsidized
ler tne present and 1t was clearly not one
OF those developments which were expected
during the Easter holiday. Early In the
day the weight OF apprehension was in
fact heaviest on the bear party in stocks,
as was manifested by their disinclination
10 leave commitments of the short side
open over the holiday. A steady demand
70 cover shorts had lifted prices to the
high level Of the day at about l o'clock, at
Which time net gains In practically all OF
the principal stocks ran from l TO 2 points.
This disposition to cover shorts was due for
the most part TO the prospect that the
banks would make a favorable statement OF
ccndition on saturday. while the stock mar
kets OF the world are closed for the Easter
holidays.
BANKS Mako GAINS.
The banks have already gained since Fri
Gay. sif,VD on Subtreasury operations and
they are estimated TO have received from
the interior something over a million dollars
In the same time. In view Of this prospect,
ne VI call money To-Day was
rather ignored, being attributed 10 the
special demand to carry over tie triple
holiday; Late in the day, after the mar
ket had been broken by the news OF The
Northern Securities decision, the money
rate Hurried to 10 per cent. Sterling ex-
change advanced several points and dis
count rose In London. leaving the future
course OF our money market open to some
question. A violent recovery in raw cop
per In Lemon he, leo to a large buying e
distress among the shorts In Sugar. and
there was a notable demaBd for the Pa
stocks. All these things helped 10 give tone
to the early market The collapse after
the Northern Securities decision became
en Securities itself. after having sold at
1851 on the curb. dropped to 1919, with a
final rally 70 l@.f closing lt bid Union
heavily sold afterward, its position beng
considered peculiarly affected by the de-
ciston by reason Of the Southern Pacific liti-
cation.
St Louis and San Francisco dropped ~,
rejecting the fear that the Rock Island
New York Central were also heavily sold,
the former touching 1919. a new low level
on the present movement The whole mar
ering by shorts and closed dull. but STEADY.
The notice of appeal in the Northkrn Sc
c%urities case was cited as an argument to
allay. apprehension but the sweeping char
acter OF the decision and the unaninity OF
the court had a discouraging effect on those
who hope for a reversal. Bonds weakened
In sympathy with stocks. Total sales, par
value, S.466.Ooo.
MARKET NARROW.
The stock market has been exceedingly
narrow and wholly professional during the
/ week. The fluctuations have been Irregular
at times. but prices worked to e higher
level generally before the late break to-
day. The approach of a three days holt
speculative operations. The public mystifi-
cation over the position and the plans OF
the Southern Pacific pool has been an adj
ditlons! repressive influence. The dissolu-
ton Of the temporary injunction against
/ ths voting of the Union Pacific holdings OF
Southern Pacific seems TO have met the ex-
but that party seems to have failed en-
tirely to take account Of the obvious prob
ability OF an appeal OF the case and a con-
| sequent suspension OF the questions at issue.
nual meeting of the Southern Pacific leaves
the present control undisturbed and relieves
the immediate apprehension of the dis
turbance which would result from an upset
of that control, But the prospect OF a
o drawn-out litigation. holding IN sus-
pense wide-reaching questions OF rights OF
ownership and control of stocks OF rail-
roads by competing railroad companies, is
not viewed with equanImity. by holders OF
stocks. There Is some fear that the dsci-
sion In the Northern Securities case may
Southern Pacific case, and may also affect
the status of many other holdings by rail-
road companies acquired In the course OF
~ VI a III Nlc
railroad world.
POOLS HOLDINGS.
| The disposition Of the large pool holdings
OF Southern Pacific stock offers so many
commitments. The term Of the pool expires
on Friday, and the general belief g that IL
will be dissolved. How far Its holdings may
then be released for sale in the market. to
what extent this marketing may have al
| ready been anticipated by a short selling,
what extension Of financial facilities nay
desire to retain their holdings are all ques-
ttons which are the subject of varying sur
nuence to be exerted on the general specu-
latfye situation.
The stimulating effect on speculation,
relaxation of the money situation has BEEN
neutrslized by tnese considerations. the
easing condition OF money has been maul-
rest In all the worlds money markets and
has served to relieve the recent persistent
pressure Of liquidation, but has not entirely
snasS has m : Been ie az 5otaS Sf d tns weeks seSrs
previous sale prices caused in various dor
mant stocks by the effort to market small
liquidation of United States Steel securitIes
Induced by the report of a decrease in the
net earnings for the past quarter OF nearly
Sz,oU.oV0 compared with the first quarter ~
last year. The corporations new bper-cent
bonds reached a new low-record price at
S& on the curb. but the extraordinary
showing OF earnings and the productive
power contained in the annual exhibit of
the company served as n counteracting in
fiuence and inside support was also IN evil
dence. which had the effect of restoring
confidence and causing a rally.
RAILROAD EARNINGS.
Another favoring influence was the large
Increase in gross earnings of railroads for
the fourth week and month OF March. which
reached from 20 to 90 per cent for some OF
the leading systems OF the country. The
labor situation was a rather disturbing ele-
ment still. especially the disputes IN the
anthracite region, over the fnterpretation
OF some classes Of the Strike Commiston's
award. but the adjournment of the wabash
wage dispute and the conciliatory attitude
adopted by the structural iron workers
had a reassuring effect.
Amalgamated Copper has been under
pressure, supposed to be due to a reaction
airy tendency in the copper market. While
the weight Of the recent stock market de-
preston has been distinctly relieved. there
is manifest hesitation about the embarking
in commitments to the long side OF the mar
ket The relief Of the immediate situation
In the money market has not ended the
doubt about the adequacy Of money sup
piles for the needs OF the coming fan.
Active discussion OF the volume of ''undi-
gested securities IN the market. while
showing all degrees of misconception ana
many conflicting opinions even in the best
Informed and b~est-qualihed quarters, has
had a marked influence in keeping alive
a spirit OF caution and in confirming a con-
sentative attitude toward the stock mar
.ket
The bond market has been duh and neg
lected and irregular IN the movement OF
prices. United States Is advanced Y per
-.