Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-05
STOCKS ARE TESTED
Rumor of Bearish Movement
Is Very Depressing.
ISSUES SWIFTLY DECLINE
Then Follows a Sharp Rebound in
Some Quarters.
NET RESULT ENCOURAGING
Bears Got Cue From Market Condi-
tions-American Stocks
Feverish in London.
ISSUES SWIFTLY DECLINE
NET RESULT ENCOURAGING
Special Dispatch To The Star.

Special Dispatch to The Star
NEW YORK. October 5.-Stocks were
submitted today to rather thorough test
of their position in the market Fol-
lowing the late heaviness yesterday and
the continuation of depression in the Lon
don market this morning. sentiment be-
fore the opening was not particularly
cheerful and reports were current that
bearish operators were disposed to make
an attack on prices.
There was u swift decline in the quota
tons of some influential issues. the United
States Steel common suffering the most
extensively. an all-around unsettlement of
the list without stimulating general hqui-
dation. and a sharp rebound, in which the
bulk of the losses were recovered.
Thereafter the market was somewhat
nervous. manifesting much rregularity in
the price movement and tending to dull
ness.
The net result of the effort to de-
press prices seemed until well into the
afternoon to be a demonstration that
the market was in n strong position in
trinsically. despite the advances which
have taken place, especially in a few
issues. and despite the feelings Of eau
tion engendered by these advances and
by the development in money.
Bearish operators had undoubtedly
been encouraged by the various factors
alluded to in the foregoing, which
might make for a weakened position in
stocks.
Moreover it had probably become
known to the professional element that
some stocks. particularly those which
had been advancing the most Aggressive
ly. were cited with stop loss orders. Such
orders were uncovered in large quantities
in the first hours selling movement, most
noticeaby I'm the case of United States
Steel and Union Pacific. The selling en-
limo
1t was not assisted by such liquidation as
would ordinarily have occurred if the
public had been participating extensively
in the recent speculation.
Some Securities Resisted.
There were. besides. some important or
significant issues which displayed marked
resistance to pressure. among them
being Baltimore and Ohio, New York
Central, the Erie issues, American Sugar
Refining. Canadian Pacific and Southern
Pacific. The rapidity with which other
stocks. such as United States Steel. ST.
Paul and Pennsylvania. rallied also tend
ed to prevent the market from falling
into that demoralized condition which is
necessary to the success of any deter
mined attack on quotations.
After the first-hour upset which fol-
lowed the somewhat irregular but gen.
orally strong opening movement, the mar
ket showed irregular price changes with
out exhibited any pronounced tendency.
London was seller in this market
Among the news items Of the day
which were of considerable interest was
the Canadian Pacific's report OF earnings
for the fourth week in September, show
ing an increase In gross of 1855. 600 MAX
ing the increase from July 81. 730. 600.
Very little interest seemed to be ex-
cited by President Taft's declaration of
opinion that the country was entering
upon an era of unprecedented business en-
terprise and expansion. presumably be-
cause 1t was accompanied by a renewed
pledge of loyalty to the Rooseveltian anti
prosperity Jehad, or as Mr.. Taft termed
Il. Crusade"
Except a rise in New York exchange
at Chicago to 10 cents discount, from 20
cents Yesterday there was no obviously
favorable turn in money matters. Cali
money held firmly at per cent or high
er, and all time maturdties manifested a
hrm tone. with an active demand.
London Stock Market.
Special Cablegram to The Star
LONDON. October Gilt-edged invest
ment issues. under the influence OF divi-
dend payments, closed steady on the stock
exchange today. Home rails were dull.
Spanish bonds reflected the less satisfac-
tory war condition in Morocco. closing fiat.
while other foreign government bonds
were very quiet. Copper mining shares
were steady during the late trading, owing
10 covering movement on the part of the
shorts.
American shares during the closing hour
on the exchange were feverish. with the
United States Steel shares showing violent
fluctuations An Improvement however.
developed during the course Of the curb
trading. De Beers made a final loss OF 3-18
10 IS Lille Rio Tintos closed net I'M
changed at 1Iss. Weakness marked the
closing on both Paris and Berljn hovrsas