Los Angeles herald., 1905-04-19
BY Associated Presk.

NEW YORK, April 1S.-Speculators
long of stocks showed a great deal of
trepidation today, which caused a free
unloading and rather severe inroads on
prices.
The news of the day contained Moth
ing to indicate an impairment of ac-
tual values, but the action of the
market itself served to create dstrust
and uncertainty over the many stories
of brilliant financial projects which
have been the prime motive for the
buying of stocks up to the recent high
level of prices.
The incident having the most direct
influence was the sudden and violent
break of Northern Securities within
the first ten minutes of trading on the
curb market. The first few sales of
the stock were at a fraction higher
than last night, up to $1.Sl. but after
that there seemed absolutely no de-
mand and the price was offered down
precipitately 16 points without finding
buyers. This news quickly reached
the floor of the stock exchange and
induced slump in the price of Union
Pacific and st. Paul. The quick re-
covery of 10 or 12 points in Northern
Securities was reported almost immedi-
ately.
The feverish action left sentiment
very much unsettled and in the alb
sence of actual news to explain the
break, there was a disposition to at
tribute it to the practical operating
difficulties in the curb market, where
facilities are restricted both in the
matter of supply and of the conven-
fences of the buying, thus leaving the
market narrow and unrepresentative
for any stock of such an enormous
volume as that of the Northern Sc
curities company.
But the volume of the offerings of
the related stocks on the exchange de-
prived this explanation of its force.
There was more plausibility in the con-
tention that on the eve of the surren-
der of Northern Securities share GER
tificates to be exchanged for Northern
Pacific and Great Northern stock,
there developed a certain apprehension
that with the return to the market of
great floating supply of these con-
stituent stocks it would be found diff
cult to keep up their prices to a level
to which they have recently sold.
The tie-up in the Northern Securi-
ties company has left the actual float
ing supply of Great Northern and
Northern Pacific very small, making
it easy to mark up the price to fig
ures more than double those prevailing
before the formation Of the securities
company. The reports current to ac-
count for these prices and which have
been entirely without sanction of Off
cial authority, have all indicated fl
nancial reimbursement rather than any
actual change in the equities of the
companies.
The supposed plan to incorporate
Great Northern iron holdings into a
separate company is an example The |
market position of Union Pacific also |
has been the subject of growing sus-
picion The enormous borrowing de- |
mand for this stock, which has at |
tracted marked attention, has been |
generally attributed to the desire for |
its use for proxies at the meeting to |
authorize the $l00,000OO0 preferred |
stock increase.
ing tomorrow and there seemed a sud-
den realization that this might mean
the release to the market of very
large amount of this borrowed stock.
There was some dread entertained even
that this enormous borrowing of stock
might represent liquidating sales by
insiders who We're borrowing for de-
livery to disguise the source of the
selling. In fact, there was very
general disposition to suspect the spec
ulative conditions of the market as a
whole.
Pools which have operated in va
rous stocks unloaded to a large ex-
rent. Ihe supposltlon that there was
by selling in the stock
market against the necessities of the
wheat deal also continued in force.
The weather bureaus weekly crop re-
port relieved some apprehension of
damage from cold weather.
Money continued easy. A survey of
he days net changes. however, re-
,eals a more decided setback in prices
han has occurred In many weeks.
ba q |
he day and prices were at about the
owest.
Bonds were irregular. Total sales,
lar value, SO. 365, 900.
United States bonds were all un-
hanged on call.