The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-27

sales 10 date this year 81 II Sb,SfO
To corresponding date last year. .4O,26O,IGO
NEW YORK. March 2s-To-days stock mar
ket a small affair, and trading centered
again in Union Pacific. That stock fuctuated
over a range Of slightly more than point
above last nights level with constant reactions,
and ended the day at an advance OF s..
The suggestion that the manner of distributing
the Northern Securities assets should be sub
mitted to judicial decision was an unsettling
influence upon the market. in spite of the vari-
Gus assurances and intimatons from authorized
sources that there was no danger of hostilities
between the great forces concerned in the settle
ment.
Some excitement was caused all through the
Stock Exchange neghborhood by the outbreak
of dangerous fire near at hand Broadway,
and the clouds of binding and suffocating smoke
pervaded the exchange floor and the offices and
Railways of the great office buildings surround
| ing it. Attention thus diverted from the
market. and the trading dull and anguid
reaction before the bank statement carried
! prices back to the neighborhood of last nights
| level and there Indifferent rally after
its publication The closing dull and heavy.
The bank statement showed something
than the expected increase in cash holdings.
The liberal loan expansion carried that item
/ above the billiOn-dollar mark for the first time
| in the history of the clearing house. The in
crease in borrowing was attributed largely to the
| increase in speculation on the Stock Exchange.
REVIEW OF THE WEEK.
The plan for the distribution of the Northern
/ Securities holdings Of Northern Pacific and
Great Northern the occasion of an excited
speculation on two days OF the week. The ami
maticn and strength of the market those two
days almost great the days when
the plan of the Northern Securities formation
first began to emerge into public knowledge.
This effect from the dissolution of a corpora
ton from which such hopes were entertained
and whose formation had stimulated such a
buoyant rise in values occasioned some perplex-
thus far come to the public knowledge.
The ordinary explanation Of a rebound in
| event long anticipated would be the covering of
% t VINO nad sIto IN
| inadequate to account for the proportion of this
| weeks demand. especially an enormous short
interest was covered last week after the decision
| of the Supreme Court in the Northern Securities
Neither there anything in the terms of
| the distribution plan itself which accounted for
lated to the Northern Securities merger Trans
actions Tuesday of 100000 in Union Pacific
dent which finds few parallels in the history of
| the Stock Exchange. One such parallel was the
| excited competitive buying of Northern Pacific
| in 1901. which preciptated the corner in that
The memory of this precedent caused some un-
easiness lest this might be contest on for con-
troll CT the Union Pacific.
| CONTEST FOR CONTROL. OF THE NORTH
| WEST RAILROAD SITUATION.
This opened up the formidable possibility of
| the reopening of the whole contest for control
| OF the Northwest railroad situation, which the
| Northern Securities formation designed to
| settle
The favorite hypothesis by the WaIl-street
| public that Northern Pacific and Great
Northern interests were scouting a sufficient
| holding of Union Pacific to secure a voice in its
| management proportionate to Union Pacihc's
| influence in those two companies, and were doing
|
IN Union PaGihc with WIN "a. Xle% TO in1erehan 9
the establishment thus of community OF in
terest. which would effect the same result in an
The large supply Of Union Pacific stock brought
out from sources associated with the company
by the bull party as corroboration of this view.
On the other hand were official denials of any
Northern Pacific and Great Northern interests.
The rImor gained currency. and obtained some
credence that the Union Pacific party was in
fact dissatisfied with the plan of distribution of
OF obtaining back the holdings of Northern Pa
ciEc put into the merger rather than proper
Northern
The nervousness of the market is accounted for
by these doubts and uncertainties. The Union
Pacific movement came under suspicion of
speculative and manipulative origin. The prece-
dent recalled Of the enormous absorption
of the Southern Railway which followed the
hrst limitations of the lodgment OF Louisville *
Nashville In community Of interest in the
South.
BIG TRADE n Sr soqTE He RAILWAY
Dealings in Southern Railway for one day
| amounted to se4. 600 shares and were followed
by any change Of representation in the control
| OF that railway
| The excited dealings in Northern Securities
| stock on the curb and in Northern Pacific and
Great Northern when released shown to
| be largely due to dealings Of arbitrage char
acter. designed to adjust these stocks to the
| ratio OF their exchange values under the North
| Securities distribution They reacted in COM
| pany with the same facility they advanced.
| The temporary activity in the market was
| largely congested in stocks which supposed
| to be available for the community of interest
| under the plan. The mass Of stocks showed
| little effect and their comparative inertness
| checked the movement.
| The laggard movement in United States Steel,
| in view of the encouraging reports of revived
| activity in the iron and steel trade espe-
| cially notable. although the reports from that
| trade had cheering influence upon the general
| sentiment. So did the rains i'm the Southwestern
| wheat belt. This influence was somewhat modi-
| fed by the advance in the price of wheat.
| The avoidance of soft coal strike and favor
beneficial influences. Prospects for railroad earn
ings reported better.
| Foreign exchange advanced to the gold export
point. but the continued flow of Japanese gold
est time loans is at a point which encourage
the holding OF dividend-paying railroad stocks
present prices
Railroad bonds related TO the Northern Securi-
! ties merger shared in the temporary activity of
the stocks The bond market generally was r-
regular. United States twos the old fours and
registered have advanced one
quarter of l per cent. and the tours.
coupon. one-eighth of per cent on call during
the week Sales of bonds. $500 O00
4 IA