The Washington herald., 1913-05-07
STOCKS SLUMP
UNDER RAID|NG
Sale of Southern Pacific in
Vaults of Union Pacific
the Worry.
CLOSING. ON THE LOW
Gold Goes to Frsnce-No Life in Local
Securities-Gossip and
News.
CLOSING ON THE LOW
By L. A. FLEMING.

News.
BY L. A. FLEMING.
Tuesdays stock market was the exact
reverse of Mondays. All the joy hao
gone out of il. The bears who did not
cover on Monday were complimenting
themselves yesterday as they returned to
pounding stocks right and left, while
those who did were selling more freely
In order to even up on their losses in pa
l.er profits by taking in their shorts.
Where there was strength the previous
evening there was weakness. Some OF
the prominent houses sent out early tips
predicting excellent conditions and PROB
able higher prices because the short in
terest is SO heavy and the peace of Eu'
rope seems assured. But before the dis
PATCHES reached correspondents the tickle,
told the tale of different Kind of hap
penings. Stocks We're under the ham
mer. and they continued TO be slashed
right and left up to the tap OF the Dell
and the only encouragin- feature was the
fact that the big short interest has bee:i
still. further inflated, and is now so gigan~
tic that the successful solving of the
problem of Southern Pacific stock sale by
Union Pacific would result in wild
rally and killing of the shorts.
The Cause of the Trouble.
But right there lays the entire cause
OF the trouble. II is a case frequently
on Wall Street, if it is NOT one thing, IL
IL another. the peace Of Europe seems
assured by the surrender of Scutari by
the captors-but the sale of the Southern
Pacific stock-$l26. 0O0,000 worth-held IN
the treasury of the Union Pacific Com
pany, is another matter, and it was the
nub of the stock market yesterday.
T..fA .aff IN N
sell this stock. how and where before
the first day of July?
1t is the problem and ii is the club
that the bears are using the string that
they are playing on-who will buy 1t, and
what will they pay for it?
Answering the query themselves, the
feeling on the bourse among the bears
is that a receivership is necessary; that
il cannot be avoided, and when the Union
Pacific people find out the same thing. III
they do, the bears will have fully dis
counted the worst.
In any event the bears were so sure
OF their position that they did very little
covering. Profits did not tempt
Gold Exports.
They were further encouraged by the
engagement of S2.0OO,ooO gold for export
30 France and the promise that this
movement might extend to 100000 The
Bank of England is not likely to reduce
its rate of discount, while the France is
after the yellow boys.
Business is uuieting. awaiting the final
word on the tariff. Investors cannot be
induced TO do very much while condl-
tions are just as they are, and the halt
irg from one days good start was all
the more discouraging because there was
nothing i'm the news of the day to dis
courage-just the Union Pacifc-Southern
Pacific trouble and its solution satisfac-
tory to all i'm the interests and the courts
as well.
Declines.
Union Pacific lost . IL. Southern Pa
cific 3 1-2 Reading Is, and Steel com
mon IFS New Haven added another
SO to its decline these being the espe-
daily active and weak stocks on the
list
The indications are that the merger
between the Interborough-Metrop
would be split asuuder was another fac
tor that hurt stocks. The preferred lost
23-S and the common l. The average
decline in the secondary group was about
a point.
Strong spots.
There were a few strong spots, notably
Illinois Central, which turned for point
gain, as did Pan Handle. Beet Sugar, 500
Line, and Rock Island issues were firmer.
Munscy Trust Company.
Subscriptions were taken on allotments
of stock in the Munsey Trust Company at
the Office of the company in the Munsey
Building Mr. Munsey and a number of
associates were present during tile day.
Little news was given out, other than
that the subscriptions were being received
in a satisfactory manner On Change
two sales of the stock were /made at 10l
a share. No statement waf made as to
the date of opening for business, nor as
TO directors CT officials.
This will probably he made officially in
the near future, perhaps today.
Local Market.
II was one of the quiet days OF Change,
few buying orders and selling commits
sions usually above the limits Of the or
ders on the floor. Gas continues to be
offered freely at s., and there are bids
daily q fraction under that price.
No movement in the railways, no SELL
ing nor buying. Old bids and offers re-
main. one 10-share lot of common, 81.
Bank shares furnished most of the bust
ness at 40 for American National, 139
for Federal and 267 for Washington Loan
and Trust.
Bond transactions were limited to 1O9 ga
for Potomac Consolidated IS.
Banks are holding rates stiffly. although
admitting that they have ample money
in their vaults. Business in certain lines
is excellent and rather slow in others.
Rates are held firmly at 5a5 1-2 on col
lateral, and 1-2a6 on commercial paper.
sA.OO0,0OO Bond Deal.
The Fidelity Trust Company of Balti-
more, the Mercantile Trust and Deposit
Company Of Baltimore, and til, Fed
eral Utilities Incorporated, of New York
have bought the s4Ooo.OoO issue of Elk
Horn Fuel Company first mortgage five
year per cent convertible notes and
are now forming a syndicate to under
write the notes.
The Elk Horn Fuel Company is con-
trolled by Baltimore West Virginia.
and Kentucky capitalists, and owners in
Zee of 200.e0o acres of land and min
era! rights, of which $4,000 acres are
In the Elk Horn region in Eastern Ken
Upshur Counties, West Virginia. now un-
der operation. The company also con-
trolls the Northern Coal and Coke Com
Coal Company. and the Tennis Coal
Company
The EIkhorn Fuel Company is prac-
tically assured an income of $4,000 for |
the first year of its operation. This in |
ciudes s264, 600 dividend, at the rate of |
per cent a year on the consolidation |
Coal Company's stock, 1900 shares of |
which 1t owns and which Is pledged as
part security for the notes, and in adj |
dition earnings win accrue to the COM |
many from the Mineral Fuel CoY1nuauy