The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-30
GOSSIP OF WALL STREET.

GOSSIP or WALL STREET.
The desire 70 sacrifice stocks rather than
carry them over the end Of the week became
almost hysteTical In the last half hour OF
yesterdays trading, and securities we're
thrown overheard Unfortunately In a
participating manner Bid prices some
times we're points below the last previous
quotation for stocks like New York Central
ana brokers asked In vain for selling limits
The selling was at the market, that Is. at
the best prices obtainab BILE, and the bear
crowd covered contracts on pretty much
us own terms. The outside selling pressure
was so extraordinary that the ticker was
fifteen minutes behind the market when
trading ceased. II had been anywhere
from Ave 10 ten minutes behind from the
opening. At the last, rallies Of half or full
point between sales and fresh declines equally
violent reflected the excitement and con-
FUSION under which orders were executed.
There were intervals when the market was
actually nanloky. The tape seemed 10 show
that large holders OF stocks we're selling them
because they had TO-, and a Stampede of
smaller holders was naturally the consequence
OF that liquidation. Evidence OF organized
manipulation on the short side abounded.
but IL was the kind Of ghoulish manipulation
that attends an avalanche OF actual liquda-
ton.
At the expense OF every speculative crowd
that had been committed TO the long side Of
the market and was not known to have got
out OF stocks before the break rumors we're
prevalent yesterday, and heavy selling from
other than bear sources was scrutinized
suspiciously. The rumors OF financial dim
oulties that had been circulated previously
during the week we're repeated specifically.
II was a reminder Of the bear market two
years ago. when rumors attacking the credit
- Id ~ Il
change firms we're In constant circulation.
Pools that had been active recently in minor
securities became objects yesterday OF gem
eral distrust Their stocks were made con-
spicuous as targets for attack. Some Of these
pools, however, showed a good deal Of valor
in getting under their stocks and supporting
them.
The Gates people were reported 70 be selling
the market very heavily. Some OF the heavi-
est selling in the United States Steel stocks
and Erie was attributed 10 them. on Friday
John ". Gates gave out a very bullish inter-
view on the steel trade situation.
The pressure upon the Steel stocks was
extra ord mary and probabl this was to
greater extent than any other development
In the market responsible for the demorali-
ration Of outside sentiment Through the
Steel stocks. as has been already pointed
directly affected.
Failures never. or at least very rarely, are
announced on Saturday.
The occupation Of eighth chasing will not
be 90 profitable after the stock transfer tax
becomes effective, as tho following calculation
will show. The professional trader who is
a member Of the Stock Exchange and executes
his own orders on the floor does not as a rule,
oil kfa Nk1W
he depends upon some fellow member. who,
doing n regular brokerage business. main
tains clearing house facilities. A trader,
for example. will make his headquarters
With q certain Stock Exchange house and that
house undertakes TO clear his trades, The
charge for clearing is 81 on each 100 shares
on trades that are made and closed out on the
same day. Scalping operations. naturally,
are svened up before the close each day.
leaving only the clearing TO be done. with
no balance Of stocks either way. Under
present conditions the traders calculation Is
like this An eighth won means ti7.50 on
each 100 shares less 81 TO a broker for clearing
the trade, or tttSo net; an eighth lost means
si750 on TOO shares, plus the 81 for clearing,
or tts.5o. The addition Of the transfer tax
Will. change the calculation as follows: An
eighth won viii mean St2. 80 on each 100 shares
less o. for clearing and o. tax. or $50 net:
and eighth lost Will mean tt7.5O plus 81 for
clearing and - tar. or 1850. 1t Is upon this
form Of professional speculation that the
tax VIII be q rub.
Those traders Of the Consolidated Exchange
who propose TO set up q board Of their own on
the other side OF the North River in order to
evade the stock tax are apparently needless
OF the fact that without a steady Inflow Of
bonahde business from outside sources they
would soon be reduced 10 the extremity OF
preying upon each other There are times
when it is said Of the stock market that the
oroupiers are playing with themselves and in
variably at such times speculation is az very
low ebb. II Is a distressing condition and one
under which the professional body Of Wall
Street could not long survive. Professional
activity IL governed by the volume OF outside
business. The professional trader stands
between the brokers and the public, dealing
not in values but In fluctuations. II is the
purely speculative element Of the Contoli-
dated board that is determined upon making
the experiment In New Jersey. II the COM
mission houses should refuse 10 go. OF II even
1--WE or six Of the more prominent ones should
decline the experiment, the traders mi ght find
their new lot worse than the old, tax included
for already the proportion OF traders 10 brok-
ers on the little board is altogether too large,
and any reduction in the proportion OF bona
fde business to the volume Of floor trading
would increase the preying OF traders upon
each other. The commission houses are re-
luctsnt 20 make the change. and some Of them
will probably remain no matter what the
traders may do The traders have nothing to
lose the commission houses have. The tax
OF g. on each 100 shares OF stock Ia no great
hardship uponsthe public, whereas II is upon
the traders. The public would probably choose
70 pay the tax and come 10 Wall Street as be-
fore in preference 10 crossing the river. An
exchange founded for the benefit primarily Of
professional traders would in all probability
become. II II were not from the beginning.
an exchange for professional speculation eN-
cluslvely. and az such IL would not be likely
10 survive. The commission houses see no
good reason why they should assume all the
risks OF the experiment for, the benefit Of the
traders. who risk nothing. The traders re-
mainjrR. in the event Of the larger COM
mission houses refusing 70 go. would prob
ably hnd the decrease OF professional com
petition on the floor 20 more than compen-
safe for the tax. Besides all other arguments.
the stock market is in Wall Street; there is
where people so 90 ind IT, there 10 where Il
has always been, and there. in all probability,
Il will remain for all time.
Since last the untitled orders on the books
Of the United States Steel Corporation were