The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-22
"BLiCK FRIDAY" R.
ANOTHER PANIC TN WALL STREET.
Sudden Tumble in Rock Island
Shares.
A Drop" from 1870 rs
to 40.
Numerous Failures and Enor-
nous Losses.
-~~~~>~~->~~~~~~~~~~~-
COLLAPSE OF THE ROCK ISLAND POOL.
CONSERVATION Among the "Bulls"
and tBears."
COLLAPSE OF THE ROCK ISLAND POOL

and sBears."
An alarming rumor, which soon doomed into
terrible certainty, radiated from the mysterious
vicinage OF the Stock Exchange yesterday. crash
had come, and brokers small and large were
severely hurt by the debris
A FINANCIAL EARTHQUAKES.
1t is curious enough that such an unpleasng
and subsequent collapsing should tread in the
nimsy realm or stock and shares SO closely on the
heels of the genuine earthquake which ruied up the
old rocky earth's crust around New York on Sunday
night. AS sandy Long Island suffered on Sunday.
Rock Island paper suffered yesterday to great
tent, ana tumbled down more houses Wall street
than the great subterranean wave did.
To appreciate the true character OF
the panic 1t may be well to say
that last winter, when the stock OF the Chicago,
Rock Island and Pacific Railroad Company stood at
from l03 to 1906
POOL WAS FORMED
to ''bull" the market on this stock. Under the
pressure or continual purchases the stock began
ascending, and short time ago had reached 125.
At this time o leak Of dtstrust was sprung and
Rock Island stock ran down until ir drew water
at 118. There 1t renamed, but for
short time, the workers at the pool using all pos
sible means for q raise in price. The market was
timid and buyers few, and it became evident that
some
DESPERATE MEASURES
must be resorted to to send up Rock Island. It is
painful to think that the clique who had the con-
splracy In hand found' ready agents or soft
headed dupes In some OF the Bohemian
journals Of the CITY, The worst feature therefore,
OF the disaster Is the Ubiquitous scheme
which the clique employed in order to seduce
the public into buying the inflated stock. To
enable them TO give pretext for the rise In Its
price and IN order to hold out the temptation Of
still higher prices they caused rumor to be circu-
lated that 1t was the intention OF the company to
declare
ONE HUNDRED PER CENT STOCK DIVIDEND,
on which cash dividends would be paid the same as
on the original stock. This rumor found consider
able credence, despite the tact that the laws OF
Illinois forbid the issue OF such dividends, and was
published in several Of the papers Of this city, by
one OF whom 1t was announced In the following
FORM
The movement In Rock Island Is based on the fol-
lowing statement Of what Is likely to be done IN
future IN the shape OF canccillng bonds and de.
claring stock DIVIDEND
Present Rock Island bonds. So O0O, 600
Present Rock Island share capital. u.s. 600 900
per cent interest on 50, 600 600 bonds. -. S63Oooo
per cent dividend on $4,000 ooo.. 100000
Balance 10 pront and loss. .............. 100000
Net earnings a1ns s,d for 10000
lowing cash and assets:-
surplus cash 50, $780, 900
sas 900 acres land .''..
Total value OF assets SO, 800 600
plan proposed for the company TO follow Il to retire
aud cancel the bonded debt with the preceding
making the total capital account So 900 OOl all In
shares IN place OF $25 900 900 bonds, and shares
on the ss2,OOoOOO share capital viii amount TO
$2,560,OO0, while the net earnings last year were
proposed dividend.
When this rumor had saturated the minds OF the
sharp overclever men OF the street, who are after
all. among the most credulous mortals the CLIQUE
again commenced buying in immense quantities OF
the stock, until, on Tuesday afternoon, 1t was
quoted at 1907. SO far for the history OF the RISE
1t will at once strike every resemblance to
the notorious gold corner which eventuated in
BLACK FRIDAY
or r1inous memory. This latest conspiracy like
that audacious attempt upon the moneyed interest
OF the entire community with regard to gold, mad
for Its object The cornerinR Of all the stock and In
the face OF an excited market, suddenly squeezing
the shorts' ana forcing them to buy at any price
up to 300 The OF the unsuccess In this Is re-
ported to be due to
TREACHERY IN THE RANKS
OF the clique. the lisk was no DOUBT enormous and
re CURED nerve such as few can command 70 carry
o ut the plan. The operations on Tuesday reached
no less than 100000 shares, against 10000 on the
market. william s. Woodward, whose name is the
only one that can be authoritativey mentioned as
belonging to
THE CORNER
had given large orders various brokers to buy on
the rising MARKET but 1t Is said that his copartners
in the corner, fearing that the In ated stock would
bust like soap bubble too soon for success began
selling out early In the day. As the orders were
i'm perative the brokers greedilY grabbed at all In
their reach, and hence Woodward found himself by
this m anGuvre loaded with more than he could
carry. Yesterday morning there was great uneas
ness for 1t was whispered that Woodward refused
to take the stock he had ordered. This 500 ecame
known for fact and then Black Friday Jr., leaped
on the scene. Many Of the brokers who had bought
on woodwards account could not pay up their
Margin and the CONSERVATION became universal
FAILURES
were reported and discredited and then again !
stared everybody in the face, as house ter house
was sold out .'under the rule" The old and re-
81 ectable house Of Datcr Timpson, 20 Broad /
street, among the first announc ed; and then the
little windbag concerns about the began going
o with burst like Chinese crackers on the Fourth
Of July. As usual on such occasions the heavesr
losers were the quietest In their dem eanor but the