Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-30

gin, who were forced out by their brokers
as the margins were wiped out. The con-
ditions which resulted were those of panic.
The professional bear operators, of course,
added their efforts TO aggravate the decline
and reaped a rich harvest in tAe slump.
The violence OF the decline. the urgency
of the selling and the lack of confidence
argued by the small demand to buy at any
stag OF the decline naturally gave rise to
many rumors of financial difficulties. The
pressure under which the members of spec
ulative pools and various stock market
plungers were laboring was sufficiently
obvious, but to this were added fears Of
financial weakness in more important quar-
tiers. Nothing developed affecting intrinsic
conditions to account for the enormous
liquidation
The Bank Statement.
The bank statement made strong show
Ing, the considerable loan reduction, to-
gether with effective increase in cash,
expanding the volume of the surplus by
over one-third to nearly $21, 100000
The break in the market could not be
traced to moneymarket conditions al
though next weeks heavy requirement re-
eelved some consideration. The tone at the
closing gave clear evidence that the
storm had passed. prices in some cases clos
ing at the lowest, with the furious activity
unabated. 1t was twenty minutes after the
signal for the closing before the reporting
or accumulated transactions on the tape
was completed
The extreme losses extend very generally
from l to points and for Buffalo, Roch-
ester and Pittsburg there was q decline of
liz, Northwestern preferred 924. Cleveland
C. {. and st. Louis g. Atlantic Coast Lis4ez
~ United States Rubber preferred IA,
New York Central and for an extensive
list of active stocks from 4 to 511, the latter
figure for st. Paul
Total sales Of bonds par value 81 $40, 900.
Penalty of Unbridled Speculation.
The stock market this week has been
given over to paying the penalty of the un-
bridled speculation which had been ram
pant previously. The process of letting out
speculative imitation in the stock market
and in the wheat market has intensified
the penalties. The parallel speculation in
the stock market and in wheat was believed
TO be largely in the same hands, so that
each market was highly sensitive to the
course of events in the other.
Many observers hold the view that the
collapse of the wheat corner was almost
entirely responsible for the overthrow of
the speculative fabric of the stock market
but this view ignores the prevalence of SINH
lar influences toward imitation which have
figured In the great rise In stocks. II is sell
dom that great speculation has been car
rled TO elimination In face of such a
body of opposing conservative sentiment.
of frequently uttered warnings and of au-
thoritative disclaimers of the rumors upon
winch the advance in prices was based.
Practically all of these various SUPPOSE
lions have been suddenly abandoned this
week, and. as consequence, stocks were
sold by those who had bought in the faith
that the suggestions We're true A cIoud
OF these rumors has centered about the
Northern Securities Company, and the be-
ginning of the actual dissolution of that
company and the distribution of its assets
has been the principal factor in discrediting
them.
Dissolution of Merger
The inconvenience which result from the
dissolution OF this merger have been long
known and recognized, but assertions had
been persistently disseminated that the pur-
poses served by the merger would be con-
served by alternative projects and that
these projects had been worked out In de-
tail and agreed upon. 1t seems proba BILE
That such projects were discussed and ne
gotiations were had looking to their adop-
ton 1t Is difficult to account otherwise
Tor the holiness and extent of the market
operations which have been pursued Rut
the conviction has emerged with the prog
resS OF the dissolution of the company that
me railroad situation in the northwest is
left practically where It was before the
control of Northern Pacific was secured bv
Union Pacific and the Northern Securities
company formed. Incidents were seized
upon this week to inhame an appreheneior
that open hostilitles would result b4tween
powerful groups of capitalists. No clear
pohcy could be seen to be furthered nv
CltIoi acme hoidings OF d minority inter-
est In both Northern Pacific and Great
Northern in place OF it's former control of
Northern Pacific and 1t was believed that
Its holdings of the two stocks would come
upon the market.
Afhltation of Roads
The ah1liation of Burlington with the Pa
cihc coast roads was believed to be pusbfne
St Paul and Northwestern 10 competitive
plans for Pacific coast outlet The resfgna
ton of George Gould from the Union Pa
CHIC BOARD TO give attea ion to the West
ern Pacific was looked upon as anotbar
measure OF competition and the question
raised over the old Carnegie coinpanv con-
tract Tor United States Steel tonnage TO
.he loud roads was regarded as another
thieat OF reprlsals for grievances elsewhere
AT the same time the appointed rneattngs
OF boards of various companies without
ulFluend increases which had been fore
.oIu, VI "lthout completing various merger
projects, which had been expected among
steel Smelling and Lead companies. took
the ground from under the feet OF the
prophets OF these things. An example of
o ue erect OF the exaggerated predictions
Cuileht was the response of the United
states Steel stocks TO the report of quarter
~ operations of that company.
Inc report showed the high degree Of
prosperity existing in that industry but the
estimates or the net earnings which had
Deen circulated previously ran several mil
non ooliars ahead of the actual showing
cLSapfomteu spectators therefore sold
MNcE Influence must be allowed for tho
sentimental effect of the revelation of the
great bank defalcation at Milwaukee due
TO speculation in wheat. Aside from the
actual loss involved a spread Of susntcton
Is the inevitable result, with unfavorable
erect on the state of general confidence.
winch is so important an element In the
prosperity OF business Wv
Life Insurance Scandal.
The life insurance scandal and tts frea
ventilation before the public is a vicious
influence In the financial world and Is ex-
pected to add to the difficulty of marketing
new issues Rotations. Confidence IL not so
hrm In the ability OF the money market To
meet all requirements facing it. The weeks
rise In exchange is believed to reflect an
accumulation in preparation for remittance
OF the japanese loan subscriptions. of which
i1nal installment of SEQ, COO coo is payable
In New York on May %. Between NAV l
ard May subscribers to S1OO 600 coo of
pennsylvania convertible bonds will be
called upon TO pay 30 per cent of SUBJ
scripuons with the privilege of paying the
subscription.
The governments withdrawal of about