The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-04-19
STOCK MARKET
DULLAND NARROW
Strong Support Saved MstrOpoI-
itan From a Big Slump
REVIEW OF TIE PAST WEEK
MOTION FOR NORTHERN PA
CIFIC APPEAL DREADED.

New York. April 1S.-Today's stock
market was but dun and narrow az
fair and the net changes are generally
small 4 violent rebound at tFa open
Ing In Metropolitan Street lilway
helped the tone for awhile. as the un-
settling effect Of such weakness as was
shown by this stock yesterday IS
dreaded The spasmOdic rise in this
stock proved 90 be due 20 bear orders
20 cover az the market, and the high
price was maintained for only an in
slant The renewed weakness Of the
stock ana the sharp selling movement
m Reading unsettled prices and turned
the trend downward. Reading dropped
about two points before supp rt was
forthcoming. The selling of the stock
was based upon a supposition that the
anthracite coal commission would be
the next object Of legal process under
the antitrust law by the government
Other members Of the anthracite group
were not notably affected The profess
sional traders who made up the market
commenced 10 cover their short con-
tracts before the bank statement APP
peared, but the selling was renewed on
! the bulletin of the statement. The dis
appointment was that Of the average
| loans, which showed an increase Of 81
! 427S00, whereas the severe liquidation
Of the week had given rise 10 hopes OF
a large loan reduction.
The showing Is complicated by the
merger of two banks and an increase
in capital Of another, which made re-
quires of loans without any corresponds
ing effect on deposits. The cash in
crease is about as expected, and the
surplus reserve was spOndingly
benefited. The market rallied and
closed steady and very dull Canadian
Pacific and Missouri Pacific enjoyed
some special benefit from good reports
of gross earnings for the second week
in April. The decision expected on
Monday on the application for a stay
pending the appeal of the Northern
| Securities case, is somewhat dreaded
and caused a pause in operations for
the advance. Foreign exchange was
dull under a continued demand for re-
mittance, but money was reported
easier in London.
Resume Of the Week.
This weeks stock market had a tur-
| bulent and demoralized beginning and
| developed a strong recovery by mid
week. 1t became quickly manifest on
Monday that the ,last half Of Thurs
days session. since which time the
stock exchange had had no session, had
failed 20 show the full effect OF the
Northern Securities decision. The mar
ket was subjected to violent liquidation
all day Monday Influenced by a drop
OF over nine points in the price OF
Northern Securities on the curb mar
ket. Great alarm was expressed on
Monday as 10 the far-reaching conse-
quences Of this decision on existing
arrangements and relations In the rail-
road world besides the immediate con-
sequences 10 flow from the dissolution
of the Northern Securities corporation
itself Il was feared that dividends
would have 10 be suspended on North
/ ern Securities in any event and any
action TO be taken by tenders OF
money where Northern Securities stock
| figured as collateral was dreaded. An
other ground for alarm was the ques
| ton OF what balance Of control Of th'
/ constituent companies might result
/ from an exchange of old stock for the
/ present Securities stock, in view OF the
/ considerable distribution Of the North
ern Securities stocks supposed 70 have
/ been enected. But beyond this specia
application Of the decision lay broad
/ field for conjecture as TO its posi- Dl'
/ bearing on the whole question or holu
] ings of railroad stocks by competinli
/ railroad companies The Union faclil'
/ holdings OF Southern Pacific. the New
/ York Central holdings Of the subsidiary
! Vanderbilt companies. the PennsylNa
mia holdings Of Baltimore & Ohio and
/ Norfolk & Western and the Baltimore
! & Ohio holdings jointly with the Lake
/ Shore of Reading, as well as the con
dftion of centralized control IN the an
/ thracfte industry and the supposed
/ Rock Island control Of st. Louis & Sal
! Francisco. were the conspicuous con
/ crete examples Of arrangements Whlci
i+ was feared would be directly inter
fered with. Many other projects
combination and Capitalization nav
been understood TO be awaiting a favor
able decision in the Northern Securlue
/ case to be pushed to consum matioI
/ The first impression OF the uecIsIoH
| therefore, was Of danger that tA
/ ground was cut from under a Verl
/ large extent OF existing nnanclal ar
/ rangements. The notable recovery u
! the stock market during the latter par
| IN the week Is undoubtedly due TO tn
| perception that the long previous dc
cline in prices had been due IN part q
an apprehension that the Northern oe
| curities organization would not slah'
the test Of judicial proceedings.
An Automatic Check.
There has been perceptible a grow
ing impression in the financial WOrl'
that the community of interest pol
lev has been responsible in part 10
the multiplication Of new securlue
market, which Is regarded as the lead
ing unfavorable factor IN the presen
situation. The condition OF the none.
market which has resulted has opet
ated IN itself as an automatic checi
unou financial projects. and SOM
sense Of relief is felt over the promls
that future corporation and syndicat
demands on the money market Will b.
curtaIIed. The policy Of purchase o
control of railroad properties at ex
traordinary prices, with issue Of new
securities on the collateral securite
of the purchased stocks. is felt TO hav
limit, a safety and wisdom which Their
was danger OF Ovelstepping IN IN
course which the process was taxing
before the check was applied. Further
more, the growing difficulty Of market
ing new securities has taken the edg
off the formerly prevailing appetit
for buying up railroads left out owe
night. I'm the picturesque phrase OF
prominent capitalist during the Bur
Iington purchases, il Is no longer
matter of such sOHcitude and even mi
nority holdings OF a compact natAc
are felt secure Of control In existing
| conditions. These are some Of the re
vised views Of the Northern Securitie
! decision which have come TO the pun
lie opinion Of Wall street in its quiete
moods. The eliminating slump o
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