The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-21
LONGS THROW THEIR
HOLDINGS OVERHEARD
Regardless of Prices, Breaks
Ranging From Two to
Ten Points

| NEW YORK. April 2O.-The cloud of
suspicion and distrust which has been
| gathering over the stock market during
| the whole of the week broke today with
| some violence. The decline was con-
tested IN the early stages, but it gathered
| force as it was extended. The quick ex-
haustion of the buying demand on the
occasional rallies was a sufficient evi-
| dence to the professional traders that the
| speculative position was still vulnerab BILE
They returned to the attack accordingly
! again and again and on each successive
| stump the weight of the offerings diSlodged
| was greater. The market proved to be
hoheySomoed with stop loss orders. which
! nave been greatly increased as the con-
! hdence in the stability of the market was
impaired The amount of the decline was
T Su,,lcient SiSo TO wipe out some of the
margins OF the more substantial class and
| IN all cases OF speculative holdings to i'm
/ PAIR the margin to such an extent as to
! lead to very general call for additional
| collateral. The principal influence in the
| trading probably was the Northern Sc
curities situation and the great scepticism
swarm OF Tumors eentering about the dis
| s0iuuon OF the company and the plans
which were expected to grow out of it.
N. p. in Unlisted Department
| The announcement made during the
session that the $155, 600, 600 of Northern
/
| traded in on the stock exchange in the
| unlisted department on Monday next was
regarded as danger to the speculative
position in that stock and in the Northern
SECURITIES, owing to the free market that
| Will be thus afforded for the stock North
ern Securities on the curb fell to the low
level or tuesdays break and il will be
| observed that the transcontinental stocks
! and those connected with them in the
Zeal rumors were the principal sufferers
! on the stock exchange. The determine
I
/ insS was accentuated by the three day
! holiday to be faced. practically all the
important exchanges of the world being
| closed until next week with the POSSIBLE
| 1ty of important political and military
| events greater than under ordinary cir
cumstanceS. The diplomatic exchange In
| progress between Japan and France on
| the question of neutrality. between Ger
many and France over conditions in Mo-
rocco and the increasing chance of q
naval encounter In the east Were warning
influences in this field. The signing of
| the stock transfer tax at Albany was of
Tered as profeSSed reason by many of
| the traders for their selling of stocks on
the ground that their operations would be
greatly hampeTed and restricted by this
ever, until June. The embittered con-
I troversy in the Equitable Life assurance
society was feared for its disturbing eff
! feet on confidence in financial conditions
| at large. The furry in ca:- money ana
| the slump in the wheat market aggravated
| the weakness of stocks and opposed an
weak at about the lowest. Bonds We're
weak in sympathy. Total sales, par value
( 100000.
Week Reviewed
The weak tone developed in this weeks
stock market has kept the minds of the
| traders busy to conclude whether they
were witnessing elimination of long
\ rise in stocks or reaction normal to the
| progress of a great rise, due TO the over
! extension of weak accounts and the de-
| sire of the great market leaders to shake
| off an undesirable following. Conditions
/ at large all made for the preservation of
| confidence. Money grew easier in the
| earlier part of the week and no difficulty
was experienced in obtaining funds for
carrying on the speculation. Reports from
| all departments of trade and industry
were of highly prosperous conditions and
| the promise of their indefinite cOntinu-
| ance. Railroad earnings are large and
| operating conditions very favorable The
| good promise of the winter wheat crop
| Is sustaining influence and the unsea-
| Sonable yield weather brought no re-
! port OF extensive damage to grain. On
| the other hand the speculative temper
became profoundly suspicious of the
| swarm of rumors and suppositions of
| great financial and merger projects in
the railroad world, which have formed
the material for rearing an airy super
] country's prosperity for the Indictment of
eager demand for stocks by its contem-
plation. 1t is this part of the stock mar
ket situation which has aroused fears and
| shaken the stability of prices.
Northern Securities Part
The situation conferred largely in the
Northern Securities. Practically all of
| the mysteries which have moved the
trace their origin either directly to the
supposed processes to be followed in the
dissolution of this corporation or to plans
| of other companies growing out of this
| dissolution Northern Securities shares,
| which Were selling in the eighties when
the supreme court declared the COM
pany's existence illegal. were advanced TO
about 1S5. The advance was based pri-
marily. as in other stocks, upon the
| growth in business and earning power of
its constituent companies to which the
claims of Northern Securities stockhold-
| ers in the ultimate distribution and undis-
] turbed by the dissolution of the company.
Beyond this the rise in the stock was
based largely on conjectural causes.
Great faith was held at one time in the
working out of the extensive plans for
the centralizing of control Of tie merger
of the great traEscOntinental railroads and
even for q combination of railroads from
ocean to ocean. as a substitute for the
abortive project Of the Northern Secur-
tiles merger and the belief was cherished
in the stock market that the controlling
powers in the great railroad systems Were
all in harmony in the furthering of these
projects a great variety of reports
bearing on the subject have had their day
in the stock market with telling effect on
prices and have then passed out of con-
SideTatfon with scarcely appreciate re-
dictionary effect on prices. OF the con-
stituent companies of the Northern Sc
curiJieS it was believed that Great North
eTn was to give the stockholders a 100
per cent dividend in stock of a company
which was TO own and operate the com
pany's iron ore lands. 1t was believed
that high price for Northern Pacific
would be obtained for it's control by St
Paul. The prices made for these stocks
in consequence was achieved in a narrow
and restricted market. only Il small vol
ume of these shares being afioat in the
open market
Replenishment of Market Supply
With the distribution of these shares
to Northern Securities stockholders inn
minent they were confronted with a large
replenishment OF the market supply which
would add to the difficulties of support
ing. the price. The impression got abroad
that heavy sales of Northern Securities
were being made for account of Union
Pacific interests. 1t was reasoned that
the dissolution of the Northern Securities
company represented the failure OF the
attempt of Union Pacific to dominate the
control of Northern Pacific and the Bur
lington because of the pro rata distribution
of Northern Pacific and Great Northern
shares. The grounds OF policy for the