The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-04-29
TERRy!{!c JOLT FOR
WALL STREET BEARS
Confidence Severely Strained by
the Decline in Great
! Northern.
special to The journal.

Special to The journal. .s.... .-...
New York, April 2S.-The severe
break in the Great Northern and North,
ern Pacific following the downward
tendency which has been in evidence
since the San Francisco disaster, has
completely upset confidence. Various
disturbing rumors in circulation have
added to the general uneasiness, and
while these lack confirmation it will,
be some time before the street RECEIVERS.
It will be we'll, however, to bear in
mind that liquidation has been thqro,
been created. Under these circum-
stances sharp advance is likely to
occur at any time. -.-.-..
AS to the crash, all that can be said
is that Wall street took a new view of
the probable effect of the San Fran
cisco disaster and sold stocks furiously.
Talk Of bankruptcy of a number of fire
underwriters had much to do with gen
eral depression, and the brighter side
point was forgotten. The large guam
titles of material that will have to be
used in reconstruction, increased
freight receipts and large sums that
will have to be sent from Europe to
pay insurance losses are features, how
ever, that it will be we'll to remember
before deciding to sell securities of the
better class. Good authorities say that
fundamental conditions underlying the
market are too strong and Of too per-
manent a character to permit Of a pro
longed and serious Decline Important
interests are not frightened, but are
holding On to their stocks with as much
confidence as ever Announcement
that Secretary Shaw will deposit in San
Francisco banks some $15,000,O00 can
not but have favorable effect. 81
There are strong indications that the
story published on Tuesday morning
predicting a revolution in France was
inspired by bear interests and was in
tended to depress stocks. The effort
failed, however. A prominent fnan-
cier who has recently returned from
Europe, declares that the report re.
ferred to greatly exaggerates the real
state of affairs. This attempt to ere.
ate panic, following the San Fran
cisco disaster, was one of the most des
picable ever witnessed in this city, -
Much comment is still heard about the
investment holdings of insurance com
panies in their bearing upon the stool
market. Some part Of the losses vii
fall upon foreign countries, to say moth
ing of the fact that adjustment nee6
not ia Ike place until sixty days have
elapsed. If the stock market, follow
ing the sensational break, declines tt
a low level, it will be due in some par
to the money situation, which: is sill
far from satisfactory. -
1t is now more generally known tina
the railroads having terminals in Sa
Francisco sustained only moderate
losses, ranging all told to probably no
over a, million, rather than into tn
quently there is now held to be no rea
son for selling stocks of those compan
les on the theory that their losses wer
large. The prospect Of enormous order
for structural steel for the rebuilding
Of the city has revived considerable en-
thusiasm in the United States Stee
stocks, and close observers are Of tn
opinion that these issues will later o.
make further response to the prospect
i've trade activity. 49,. !
The concensus Of opinion. howeve
in well-informed circles, is that a sue
cessful bull campaign need not be ez
pected for months to come. Not alor
the San Francisco fire, but the develop
ments at Washington act as depressin
factors. In few weeks the stock mai
ket will labor under the uncertaintie
of the crop situation, damage scares .bf
ing calculated to cause liquidation.
summer campaign is not impossible, br
1t is hardly conceivable that the bi
spectators dominating the situatio
will put up prices with the public in 4
receptive frame Of mind. ,.s .s
On the other, hand the Wall sire.
Bankers who have little sympathy wit
the large speculative plungers Of. tt
pools lately manipulating lndustri
and railroad securities cannot afford