The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-22

NOUS profit. The lesson taught by the whole affair
Will not be thrown away for it has shown that unit
cliques ana fools can by some as yet undscoveredl
means prevent internal treachery no specu-
iation OF this nature can succeed. Where
~'cornersn have been successful the secret
lay In the fact that they have been
made by individuals or by few inti-
mate and trustworthy friends acting together In
perfect harmony. In the case OF Rock Island the
Clique overestimated the 'short" interest, as 1t is
designated. The facts seem to show that before the
panic this morning the pool had bought 24O, 600
shares or 70, 600 shares and above the amount
IN existence. Naturally the ''cOrner" would have
been magnificent success had this excess of
700 shares been sold by the "bears.n But, as Is
now apr aren't this extra stock was simply portion
OF the stock already in the pool. and
was only transferred from individual to
general account The fact Of so large an
Oversale ought to have awakened the suspicious OF
the conndlng members Of the clique had they taken
An ordinary common sense view that there had not
been energy enough on the part Of the shear" ele-
ment Of the street. particularly at this OF the
year, to sell such an enormous amount Of "sh0rt"
stock. The corner" while broken directly by its
own want Of cohesion, would doubtless have been
m eventual flasco for the reason that the clique
l1ad advanced the price with such flourish OF
'humpets as inundated and quieted the
Operators for decline. The failure OF
the whole scheme is all the more remarkable
That so elaborate arrangements have seldom been
made to carry q speculation to q successful ISSUE
At reported that among other used to assist
sheir Plans the clique traced up all the stock held
Tor Investment outside the city, particularly such
IS now held In Chicago and along the line or the road
ana by visiting the owners or corresponding with
them obtained promises that 1t would not be sold
until certain specified high Dgure attained in
1he dealings on the New York stock Exchange. 1t
was also necessary to keep away such stock
as was held by outsiders" in the
vicinity Of Wall street. and to do
This the promise OF very large stock dividend was
held out The clique mscalcuated in this last
mentioned matter just as they did concerning the
extent Of the 'short interest," for the outsiders,
exhibited general desire to take the profits of the
rlse SO that, after ALL the enormous losses OF the
decline to-day have fallen In great part upon the
clique themselves and upon the brokers whom they
employed to bid the stock up. Seldom in fact, has
q panic gone over Wall street with so little loss to
the outside public.
The price Of the stock opened this morning
at 1904 ana rapidly advanced to 1907, but
here became unsteady, and, after vibrating for a
few minutes between 1919 and 100, suddenly started
on the decline just as the vice chairman's hammer
was calling the board to order The interest 1t
excited withdrew attention from the rest OF the
market and the call Of stocks became mere pam
tomlme In the din emanatng from the Rock Island
group OF brokers. The never sanguine class of
dealers in the STOCK losing all confidence In 1t, cast
overheard such stock as they were holding. and, the
news spreading that failures were imminent, the
stampede 10 sell led to q panic which ended only
when the rapidly falling stock struck bottom at last
I'm the vicinity Of no. decline in two hours Of nearly
twenty-one per cent.
The failures occasioned by the panic, so far as
known, are between twelve and fifteen in number,
and the aggregate losses will doubtless reach
raj millions of dollars. The intricate dealings be-
tween the various houses IN the street in the way
OF lending the stock and carrying IL Will pro-
badly lead 70 losses on the part Of many
wholly disconnected with the clique plans;
and, until few days give time for a
general interchange Of notes and comparison OF
accounts. the extent Of the damage inflicted BY the
panic VIII not be definitely known. We give In an.
other column o detailed account Of the whole affair,
with such particulars could be learned with REFER
ence to losses and the parties involved, and such
noteworthy incidents as transpired In con-
uection with the crisis. Fortunately, the
panic was confined IN great part to the particular
stock which has been the subject Of the above OBJ
eervatons. The general inclination at first was
20 take gloomy view Of the whole stock market,
and before the other ciques could rally to the sup
mort OF their favortes prices elsewhere began fall
and the whole list threatened to run into panic.
Tine "break'' In Rock Island was so soon over that
other prices had only commenced to move down.
ward when Rock Island came to dead stop at ITO:
30 that with the suspension OF the decline In the lead
ing feature OF the market the '.bus' were enabled
20 check the Generalization elsewhere. In fact,
q good deal Of new .shor." interest was doubtless
created but Its extent was greatly modified by the
fear so generally prevalent In SUCH crisis that opc
~syry Ia S,,ot Aor
as on the other for the reason that with an impend-
ang panic the "bears" would be just as likely to
suer from the inability OF buyers to carry out their
contracts as the "pulls' themselves. In fact, many
heavy losses were occasioned to-day to parties who
sold Rock Island for decline and found themselves
holding the stock at hign figures after the
parties TO whom they had sold had failed, ex-
mption from such positive losses having been
secured only where the stock was to be delivered
on sellers options not yet expired. The effect In
other directions was most marked In the Northwest
stocks which fell to TAX, and were stayed from FUR
cher decline only by the exertions Of clique. who
boldly bought over ten thousand shares and rallied
the price u.s. In the subsequent dealings IN Rock
Island a recovery to 1l3x ensued, but later In tho
DAY reaction to 111X occurred, the price closing
finally in the Vicinity Of 1l2x. Otherwise the
general market sympathized with this steadier
quotation for Rock Island, and closed with very
quiet feeling as contrasted Win its exclted condi-
Zion earlier IN the day.
HIGHEST AND LOWEST PRICES.
, The following table shows the highest and lowest
pr,ces OF tho principal stocks during the day
Highest. Lo,cest.
New York Cenrral consolidation. esk 07b
New YORK Central scrip ........... e3k p2h
Harlem . .................l27k 126K
! Erie. Observation-Disclosures. 2sA AK
Rcaninu . ..................ll7 l16
fake shore ...........114H n2K
wabash Observation-Disclosures. 6ix 6s1i
PittsburR ACKNOWLEDGEMENTS. .120k nsx
NOrthwestcrn Observation-Disclosures s3K
Northwestern preferred .,........ DIX SSk
Rock Island. Observation-Disclosures 1909 ITO
ST PAUL ACKNOWLEDGEMENTS cox 60Ik
81 Paul preferred. ................... 70k 10
Ohio and Mississippi. l8N A6h
Union Pacific. NEUTRALITY-SUSPICIOUS.. 8OL. 291s
Wsafern Union Telerr mn .. 60x s6zI