Los Angeles herald., 1905-04-28
BY Associated Press.

NEW YORK, April 27.-The lack of conf
dence In the present level of prices was the
only obvious cause for the wave of liquida-
tion that swept over the stock market today
and carried prices comprehensvely to n lower
level. The liquidation was renewed again and
again, and the entire lack OF support and the
failure to attract any effective demand at the
cheaper prices caused progressive growth in
the feeling of dstruct.
The violence of the decline gave rise to a
crop of sinister rumors of Something hanging
over the market" No better foundation de-
yeloped for these rumors while the trading
was in progress than for the many brilliant
stories which have regaled the speculative
appetite while prices were being pushed up
ward.
The stocks oenterng about the Northern Sc
ourites company shared fully in the day s
weakness, but they were not so singly con-
spcuous had been the lately. Rumors
regarding these properties having passed from
the stage of wholesale consolidation to that of
complete antagonism. followed by denials of
the supposed hostilties. the stock market i'm
capitalists in control of these properties prob
ably have been attending to the affairs OF
their own properties without contemplating
anything to give basis to the roseate stories
about them which have obtained widespread
belief The regular state of mind on this
topic is fairly representative of that on many
other stocks which have been made the object
OF Imaginative reports of late.
Yesterdays retention to the former dividend
on Norfolk & Western seemed to shatter the
hopes of spectators regarding large number
of other stocks which have been heavily
bought on similar expectations
The story of the Louisville lease to the At
lantc Coast Line Z per cent dividend
basis, which was the latest production OF
this character. obtained little credence to-
day that those two stocks were amongst the
principal sufferers by reason of the violent
reaction from yesterdays jump
Rumors of mergers amongst the metal in
dustrials. which have lifted prices exten-
sively, were equally open to suspicion with
consequent damage to the stocks concerned
Another break in the wheat market served
to renew anxiety regarding losses in that
speculation which would have to be made
good in the stock market
The opening influence on the selling from
foreign financial centers was strong owing to
the cnsettlement thare over the international
political outlook. Paris manifested decided un-
easiness over the dispute with Germany regard
ing conditions in Morocco.
The report that the cable to the Asian main
land from the island nearest to the field of
naval activity had been cut seemed to inspire
the circulation of sensational rumors that the
expected naval battle already had been fought,
with unexpected results, But 1t is doubtful
whether any all of these matters had as
feeling of suspicion and a fear of some un-
favorable development yet to be announced.
The discussion of the Milwaukee episode and
the Equitable Life scandal with the United
States Shipbuilding incident were believed to
threaten the spreading of a feeling of distrust
over a wide field, and the resulting loss of
confidence was dreaded for its results on cred
Its.
The sharpness of the rally. yesterday had
aroused hopes that the most urgent liquidation
was over, although it was expected that profit
taking by those who supported the market on
the break and who secured holding at the
low price would check the rally. The char
acter of today's selling was plain intimaton
that important liquidation remained TO be
completed. The volume of the selling gave
rise to some startling estimates of the PROPOSE
tions of the speculative Losses which have
been suffered by reason Of ill-judged cam
paigns.
Financial authorities of substantial char
acter EXPRESSED the opinion that the awaken
ing to the illusory character of much of the
recent gossip would make for the health
of the market, although the readjustment
might prove a painful process.
The tone at the close semi-demoralized.
and showed losses OF from to over points
for all the principal active stocks in the list.
Bonds weak. Total sales. par value,
$685., 900.
United States bonds were all unchanged on
call.