New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-05
BONDS.
STOCK MARKET OPERATIONS.

The weakness that developed III yesterday )
stock market was not a reflection Of conditions
affecting the actual value of American invest
rnent securities. Stocks declined because there
was d preponderance Of selling orders, the Iiqul-
dation representing a speculative movement
rather than sales for Investment account. In
deed, there were few sales for the account OF
the people who are genuine holders of Anerl-
can investment securities, for the very good
reason that there We're no factors in the day
news that warranted liquidation among the
real owners Of railway and industrial stocks
and bonds. AS pointed out IN this column
few days ago, the speculative position OF the
stock market is SO unsettled that for a time
at least irreguarity, with frequent movements
in favor Of the advocates Of lower prices must
be expected, but there is nothing in the situa-
ton that encourages the idea that solid invest
ment issues will rule permanently under the
prevailing level of quotations. Stocks are
strong hands, and every bear raid the mar
ket strengthens the technical position of spec
uation- The fact that conditions governing
the actual worth of securities absolutely
sound ought to discourage the sale Of stocks at
the present level. In yesterdays market prices
in the leading active issues declined under the
low point recorded in Saturdays slump. and at
the close net losses of from to points were
common.
Reading stock was adversely affected by the
announcement that the Lake Shore company
had sold d large block of its holdings of the
big anthracite property, while the general lists
suffered under the influence Of selling induced
by the theory that other large companies had
also been parting with their holdings Of other
roads. Most OF the more important railroad
companies are heavy holders OF stocks OF other
companies. and the fact that the Lake Shore has
taken advantage of the present level Of values,
rather the level that prevailed two weeks ago,
to convert some of its stock assets into cash at
a handsome profit on the original purchase nat
urally encourages the belief that the Pennsyl-
vania, the New-York Central and other leading
properties have been indulging in simila. oper-
atoms. There is 70 good reason why the big
railroad companies should not take advantage
of the rise in values Of the last few months to
part with certain amount of their holdings in
other companies 1t is difficult to see why such
an operation should be considered a bear argu-
ment on securities in general, especially as in
selling their holdings the companies concerned
have added materially to their cash accounts
The Baltimore and Ohio, It is understood, has
sold block Of it's Reading holdings equal to
the amount sold by the Lake Shore and as a
consequence control of the Reading property is
still held by the Lake Shore and the Baltimore
and Ohio in equal proportions.
Although there was an attempt to rally the
market in the last hour, final prices were near
the lowest of the day, with the heaviest losses
at the close in AmaIgamated Copper American
Locomotive. American Smelling, American
Sugar Refining. Atchson, Atlantic Coast Line
St. Paul, Northwest. Lackawanna. Louisville
and Nashville, National Lead New-York Cen
trail Northern Pacific Reading and Tennessee
Coal and Iron. On the curb Northern Securities
declined points. After early weakness Con-
solidated Gas advanced nearly points on the
announcement that the Gas bill had been de-
feated in the State legislature The advance in
this issue failed, however. to bring about rally
in the general list. Commission houses were
active sellers. and further liquidation was re-
ported for the account of speculative pools It
was reported in well informed quarters after the
close Of business that large lines of stocks had
been iquidated for the account Of certain specu-
lative interests. and that as a consequence the
position Of the market had been very much inn
proved Certain individuals and pools which
nave been overstaying the market have been
forced out and the prospects of a speedy re-
sumption Of buying for higher prices are there
fore much brighter than they have been in the
last two weeks. Money rates were easy. but
sterling exchange was strong