The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-14
Northern Securities Breaks ON the
Curb to o4 and Prices ON the
Exchange Tend Steadily Lower.
BRIEF SPELLS OF RESISTANCE
SERVE 10 ACCENTUATE THE DEMOR-
ALIZATION OF SENTIMENT.
All Stocks Affected by Prospective
Merger Plans Among the Leaders
I'm the Decline-MOney Easy.

stocks on the Stock Exchange to-day
1.2S9. 316 shares-were the second largest Of
the year, the high record to date being
1,546.030 on Jan. 8. This is the fifth day this
year that a full days trading has ex-
ceeded one million shares. the first being
on Jan. 6, when they amounted to 1,156,669
shares. the second Jan. s. 1.1ss,sO3 shares.
the third Jan. 9, the fourth 1.0o6.45o on
March 10 and the fifth to-day.
All other issues were obscured in to-day's
stock market by the consideration of the
decision against the legality of the North
ern Securities Company. Apparently the
speculative community had worked itself
into an assurance that the decision might
not vitality affect the standing of the COM
pany. or at any rate that the intrinsic
value of the constituent elements of the
company would be unimpaired under the
decision. AS the London Stock Exchange
remained closed to-day the local market
opened again without any opportunity for
impressions from that quarter. The result
was an extremely feverish and unsettled
tone in the early transactions, but deter
mined support was manifest and was eff
fective in checking the first decline. In
fact, some prominent stocks started up
wards from the opening. This appearance
of resisting power caused alarm among
the bears for fear that the effect of the
decision had been exhausted in the sharp
selling movement Of last Thursday. The
ample time given since then to mature
plans for the protection of the market and
for the passing of the impulsive period
Of alarm added to the timidity OF the bears,
and their operations were all on the buying
side at first. AS soon as the course of the
Northern Securities stock in the curb mar
ket became known. however. prices on the
exchange began to crumble. With the ex-
ception of short intervals due to occasional
bear covering the rest of the day was given
up to drastic liquidation. The market
rallied late in the final hour on the taking
OF profits by room shorts, but the selling
was renewed at the high level and prices
turned downwards again, closing only a
fraction above the lowest.
The days declines ranged ali the way
from two to five points for the leading
active stocks and extended to nearly twen-
ty points in some exceptional cases. Wells
Fargo dropped 1914 Great Northern pre-
ferred Lackawanna and American Express
10, St Louis q San Francisco So, Reading
so, Baltimore & Ohio and New Haven 5.
To enumerate in detail the losses below
this figure would fill a needless amount of
space. Special weakness was perceptible
in stocks involved in prospective plans for
merger, or which are supposed to be vul-
nerable to legal process under Thursday
judicial decision. The large declines in the
Gould group, st. Louis x San Francisco.
Union Pacific the railroads available for
the expected Southern Securities Company,
the anthracite coalers and Pennsylvania
and its affiliated companies were traceable
to the anxieties aroused by this decision.
Northern Securities itself, which closed on
Thursday after the publication of the de-
cision at 1881. made successive downward
plunges to "a just before the close. with the
last price at 94%4 The course of this stock
neutralized all the reassuring expressions
which had been busily circulated by many
important interests in the financial world
since Thursday. 1t could not be learned
that the banks were making any discrim-
ination against loans in which this stock
figures as collateral
There was no pressure by the banks to
call could be had from 6 per cent. down
throughout the day. Stock brokers, how
ever. were making urgent calls for addi-
tional margin, and the violent decline in
prices brought calls from the banks for adj
ditional collateral on loans. There was
large forced liquidation in consequence Of
successive drops in prices. 1t was clear
from the action of the market that deep
seated fears are entertained of the length
to which the Northern Securities decision
can be applied In upsetting all possible ar
rangements for avoidance of destructive
ratecutting and competition and in OBJ
structing the process of combination Of
capital and the resulting economies. The
favorable developments since Thursday.
such the extraordinary favorable gov
eminent report on the winter wheat crop,
gross earnings of railways for the first
week in April, and the SO. 100000 increase in
March exports of domestic products were
totally ignored in the prevailing disorder
due to the Northern Securities case.
Another drive against prices was made
on the curb just before the close. North
ern Securities sold down to "a on further
offerings by Stock Exchange brokers and
closed at 94%Q95. Steel bonds sold of to
So, a decline of per cent, and the pre-
ferred stock of the International Mercan-
tile Marine Company changed hands in
fairly large lots at 341a. decline of 37s
from last weeks closing price, Later this
same stock was freely offered at "a, with no
sales.
The bond market shared in the weakness
of stocks. Total sales, at par value, were
81, $4,000. United States bonds were all un-
changed on the last call.
Following are the days share sales and
the recorded changes: