The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-04-30

a furious storm of liquidation today
and swept away all support. Selling
under pressure of necessity found prac-
ticaIly no demand to meet it, and the
comparative slump III prices was the
result. The weakness was multiplied
by the decline in prices, and many ad-
ditional offerings were forced on the
market by lenders of money solicitious
for the value Of their collateral by spec
ulators DESTROYS of limiting their losses
and by holders on margin who were
forced out by their brokers as the mar
gins We're wiped out
Semi-Panic.
The conditions which resulted were
those of panic. The professional bear
operators added the urgency of selling
and the lack of confidence in the stock
market by bringing up many rumors
Of financial difficulties. The pressure
under which the members of specVlat-
i've pools and various stock market
plungerS were labOring was sufficiently
obvious, but to this were added. fears
of financial weakness in more import
ant quarters Nothing developed az
fecting intrinsic conditions to account
for the enormous liquidation. The bank
statement made a strong showing, the
considerable loan reduction, together
with an increase in cash. expanding
the volume OF the surplus by over one
third to nearly 100000 The break in
money market conditions. although
next weeks heavy requirement re-
ceived some consideration.
Storm Not Yet Over.
The tone at the closing gave no clear
evidence that the storm had passed,
prices in some cases closing at the
lowest with furious activity undated.
It was twenty minutes after the signal
for the closing before the reporting Of
accumulated tranSa actions on the tape
was completed. The extreme losses eX-
tended very generally from 1 to points.
and for Buffalo, Rochester & PittsbUrg
there was a decline of liz, Northwest
ern preferred go. g. c. 9. & st. Louis
s. Atlantic Coast Line ~, United
States Rubber preferred ~, New York
Central = and for the active list from
4 to 3, the latter figure for St Paul.
Total sales of bonds, par value, 81, 940,
coo.
Review of the Week.
The stock market this-week has been
given over II paying the penalty of the
unbridled speculation which has been
rampant previously The process Of
letting out speculative influence in the
stock market and in the wheat market
has intensified the penalties The pa
ralieI speculation in the stock market
and in wheat was believed to be large
" in the same hands, so that each mar
ket was highly sensitive to the course
of events in the other. Many Observ-
ers hold the view that the collapse of
the wheat corner was almost entirely
responsible for the overthrow Of the
stock market, but this view ignores
the prevalence of similar influences to-
ward imitation which have figured in
the great rise in stocks It is set down
that a great speculation has been car
ried to a elimination In face of such a.
body Of opposing conservative 'Senti-
ment as frequently uttered warming
and Of authoritative disclaimers of the
rumors on which the advance in prices
was based.
Cloud of Rumors.
Practically all Of these various sup
positions have been suddenly aban-
dOned this week. and as a consequence
stocks were sold by those who had
bought in the faith that the SUPPOSE
tons were true. A cloud of these ru-
mOrS had centered about the Northern
Securities company and the beginning
of the actual dissolution of that COM
pauy and the distribution of it's as
sets has been the principal factor in
discTediting them 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 of the merger would be con-
served by alternative projects and that
these projects had been worked out in
detail and agreed upon. It seems
prOba bic that such projects were dis
CuSsed and negotiations were had look
ing to their adoption. 1t is difficult to
account otherwise for the holiness and
extent of the market operators which
have been pursued. But the conviction
has emerged with the progress of the
dissolution Of the company that the
railroad situation in the northwest is
left practically where it was before the
control of Northern Pacific was Sc
cured by Union Pacific and Northern
Securities company formed
Future Is Not Clear.
Incidents were seized upon this week
TO inhame an apprehension that open
hOstilities would resume between
powerful groups Of capitalists. No
clear policy could be seen to be fur
thered by Union Pacific's holdings of a
minority interest in both Northern Pa
eifiC and Great Northern I'm place of its
former control Of Northern Pacific and
IT was believed that its holdings OF the
two stocks would come upon the mar
ket The utilization of Burlington with
the Pacific coast roads was believed 10
be pushing the ST Paul and North
western to competitive plans for Pa
cihc coast outlet. The resignation OF
George J. Gould from the Union Paci-
nc board TO give attention to the
Western Pacific was looked upon as
another measure of competition. and
the question raised over the old Carne-
gle company contract for United States
Steel tonnage to the Gould roads was
regarded as another threat OF reprisaI
sSr grievances elsewhere.
Prophets Discredited.
At the same time the appointed meet
ing Of the boards of various companies
without dividend increases which had
been foretOid or without completing va
riOus merger projects which had been
expected amongst steel. smelling and
lead companies, too kthe ground from
under the feet of the prophets of these
things. Much influence must be al
lowed for the sentimental effect of the
revelations of the great bank defaIca-
tion at Milwaukee due to speculation I'm
wheat. Aside from the actual loss in
volVed, a spread of suspicion is the
inevitable result with unfavorable eff
feet on the state OF general confidence
which is so important an element in
the prosperity of business.
An example of the effect of the ex-
aggerated predictions current was the
response of the United States Steel
stocks to the report of quarterly ope-
rations of that company. The report
showed the high degree of prosperity