The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-10
FINANCIAL AND COMMERCIAL.
TUESDAY, June

from London and the widely circulated
rumor that the Baltimore and Ohio, Nor
folk and Western and Erie stocks were to
be special OBJ ects Of attack by the plunging
bear contingent during the day. The pro-
gramme as indicated was carried out, al
though in the earlier part OF the trading
the attempt TO execute 1t was compare
lively unsuccessful. The preliminary at
tempt failed, doubtless owing to the fact
that for the time being the number OF opera
tors DESTROYS OF covering their short con-
tracts was larger than the number in
terested in renewing them. By reason OF
buying of this nature the market was COM
paratively strong. and prices rose frac-
tionally. Then the familiar dulness inter-
vened, followed in due time by the familiar
dash at values. The room trading ele-
ment, who are very wary now In following
the decline in prices and generally hold the
belief that the market is oversold, became
disguised when the downward movement
was renewed and threw over hastily the
stocks bought BY them in the morning
When the market closed Baltimore and
Ohio and Norfolk and Western were each
off 81 points, Erie common was down M
points and the general market was weak
in proportionate degree. 1t was another
day of new low records, and, taken as
whole, was of greater weakness than yes
terday. Particularly strong stocks we're ST.
Paul, Southern Pacific. Pennsylvania and
New York Central. These withstood the
pressure 80 that declines in them were slight.
A large share of the selling Of stocks IN
the afternoon came from a Western house
recently established in the city, which was
extremely prominent in urging on the
furious advance in prices last summer.
1t is estimated that sales for the account
of this house alone after IL o'clock amounted
to &c, 900 shares AS such sales we're chiefly
in the securities Of the soft coal roads,
with which the house in question has always
been more OF less identified in specu-
lative way, the theory was plausible, OF
course, that the selling represented hqui-
dation. 1t is well-known fact, however,
that the house referred to has for some
months been very bearish upon the market
and it is hardly probable that anybody
DESTROYS of dispoeing OF actual holdings
would advertise, as was done to-day before
the opening OF the market. that sure way
of making money was to go short OF the
stocks named. The majority OF observers,
therefore, concluded that the selling was
of the nature OF bear raid, pure and simple,
and there were very many circumstances
affording confederation OF this opinion.
Genuine selling, however. did take place
during the day for the account OF
London, and about $4,000 shares OF stock.
an amount somewhat more than commonly
estimated, were thus disposed OF. One
theory accounting for this was the supposed
unfavorable effect upon financial opinion
in London by the rise in the Imperial Bank
of Germany's discount rate. The judg-
ment expressed here in the largest banking
houses and those having the best sources
of information as to financial matters
abroad was that the declaration Of the
president of the German Bank that one
reason impelling him to recommend the
change in the rate of discount was the
disturbed condition of affairs in this country
was intended for home consumption. Fol-
lowing the financial collapse in Germany
two or three years ago money in Germany
became very easy. as it always does at such
times Business in Germany is now pick
ing up, and the rise in the banks rate OF
discount ia in response to the larger de-
mand for money which is in progress.
The selling Of stocks to-day was accom-
panied by the same rumors as on previous
occasions that various houses and indi-
viduals were in trouble. All these stories
were pronounced untrue by those who
would be the first persons to know II such
were likely, and in the high
quarters where these rumors were stamped
as false the declaration was also made
that whatever selling of stocks had taken
place in the last month because of the neces-
sity of protecting syndicate agreements
had long since ceased and that some other
tale must be invented by bearish specula-
tors as a pretended basis for their opera
tons. As matter Of fact, there is not
single legitimate force making for general
liquidation in the market below the present
level of prices. News developments Of
the day were not unfavorable, but they
affected the market little. Foreign
exchange was weak and, despite the action
of the German Rechsbank. holds at
point which makes gold exports unprofit-
able. The weekly Government crop re-
port told of conditions in the agricultural
sections with which all are familiar, and
prices in the grain market rose hut slightly.
The report as pointing to a further deterior-
alton of the cotton crop by reason OF the
damage done by floods and by the ravages
of insect life, caused another great outburst
of speculation for the rise on the Cotton
Exchange Dispatches from the Mississippi
Valley we're Of the gradual recetling Of the
waters at ST. Louis and other places where
alarm had been excited. while the revolt
of the most powerful and important section
of the members of the building trades union
here against the ignorant and domineering
course adopted by the unskilled workmen,
Who however, happened to be slightly in
the majority, is the most favorable omen OF
better things in the labor world that has
been witnessed for years. One matter
which seemed to be the subject OF some
misapprehension during the day was the
publication of a statement emanating, 1t
was stated, from the Mexican Govern
ment that it had, under the arrange
ment with the stockholders OF the
Mexican National Railway, about to be
contaminated through the fiscal agency
of Messrs Speyer d Co.. obtained control
Of the railway. The facts are that the
Mexican Government has simply gone into
partnership with the stockholders OF the
company in the management OF the COM
,apy's affairs and the event for reasons