The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-13
STOCKS SHOW WEAKNESS
PRESSURE WAS AGAINST THE NEW
YORK TRACTION ISSUES
Has Finally Broken Be-
low 1I2. Touching III 1-2 Yes
~terday-The Close Was Firm.


NEW YORK. March 12-The stock market de-
veloped some activity to-day and a rather posi-
tive tone Of weakness.
The weakness was largely sympathetic with
the pressure upon Individual stocks, especially
Metropolitan strect-railway and Metropolitan Sc
curities. The liquidation in these two stocks
gave signs Of urgency and cost the former AS
points and the latter S points.
The selling was unexplained by any news re-
garding the property and was thought likely TO
be due to settlement of one or two estates large
ly interested in the property. The authority
Of the motive of the selling gave it a sinister
effect.
Pennsylvania was also freely pressed for sale
and broke through the support which has been
in evidence about 112. The price touched lila
which 10 only = about the low point since the
last stock issue started its long decline.
The selling of Delaware & Hudson was sup
posed to provide funds for subscription to the
new stock offered.
The market hardened on short covering in spite
Of the continued weakness of the two Metropoli-
tan stocks. and the closing was firm. United
States Steel was rather conspicuous in the re-
covery.
The decrease in loans shown by the bank
statement was contrary to expectations. The
bank statement was Of little influence, however.
as the present condition OF the money market
~ AStAC a W ~
The steadiness of Northern Securities on the
curb had a dissuasive influence on traders, who
cision in the Supreme Court on Monday.
Total sales of bonds, par value, S9i5.O0O.
REVIEW OF THE WEEK.
1t is a far cry from the S,2O2, 100 shares of stock
sold on the New York Exchange on April 30.
1901. to the "a. 500 shares sold on Thursday Of
the past week.
1t is a striking showing OF the vicissitudes in
tie world of speculation and might serve by
the rule of three to. measure the conditions in
Stock Exchange circles then and now.
developments, whether favorable or unfavorable,
and lies inert to the despair Of all who look to
At the full commission Of II Of per cent. on
orders allowed by the rules of the Stock Ex-
yield about 1925. allowing the commission both
TO the buyer and seller.
LOO. But the meager details are largely made
up of dealings amongst themselves or of orders
commission is less, ranging down to 81 on 100
The gloom which pervades the circles in whose
hands lie the conduct of the machinery OF the
market is then appreciate. Three years ago a
railroad system by another was sufficient to
throw the market into a frenzy.
A GLANCE AT PAST HAPPENINGS.
At the period when the Burlington purchase
was working out, a mere surmise that the Union
Pacific was to be included in the community
Of interest induced transactions in go. 500
shares OF Union Pacific in one day. April II. 1901.
Even as late as April Is. 1902. the rumor that
Louisville & Nashville was passing to the con-
troll OF Southern Railway caused transactions
in s64. 500 shares of Southern Railway alone on
There was scarcely a railroad stock on the
list but what was regarded as available for
absorption by one OF the great systems, and no
estimates of the price to be paid was regarded
us TOO eNtravasant. The fact that the payment
was to be made i'm new securities detracted not
at all from the importance attached to the trans
action. as the Unsuitable demand for securities in
into cash.
The United States Steel Corporation was con-
stability in that trade by regulating the pro-
duction and guarding against the violent %fuctua-
Industry at periodical Intervals.
Operators in Wall street looked forward to the
systems of the country in one community Of in
terest." which would do away with destructive
competition, while the various industries were
10 be consolidated under centralized control.
which would insure their stability and attract
the confident investment OF the savings of all
grades Of employees of the peaceful profits of
enterprise.
SUBSTANTIAL GROUND FOR HESITATION.
From the standpoint of cold reflection and ex-
perience the excessive speculative exaltation of
that time seems a sufficient warning in itself
for the violent revulsion. which was to follow.
in accordance with the history Of all similar
movements. The revulsion Of sentiment on the
part Of the outside world had been accumulated
by the revelations Of the INSCRIPTIONS methods
employed in the formation of some OF the cor
%porations whose shares were offered to the pub
lie and the fragrant manipulation by which the
fotation was furthered.
The assumption that the legal obstacles OPP
posed to the process of combination were the
direct causes of the breaking up of the carnival
of speculation sharpens the Influences attributed
TO the Northern Securities decision, which is
awaited with a feverish anxiety from week to
week and almost from day to day.
The supposition that the stock market will
promptly find its bearings when that decision
becomes known. however. takes small account
of the plentiful signs of industrial and CONNER
cial reactions in all quarters. The declining
tendency of railroad earnings and traffic and of
bank clearings. the accumulation OF idle re-
serves in bank centers. the obscure outcome of
the coming years crop. the doubt over the sup
ply of cotton to be finally disclosed by the pres
ent years crop, the sharp drop in the value of
the country's exports as a consequence Of the
speculative level OF prices of commodities.
the problem of the earnings to be achieved on
the heavy expenditures now making by the rail-
roads, the uncertainties surrounding the war in
the far East and its possible complications and
the natural unsettlement usual to a national DO
Htical campaign in this country are some of the