New-York tribune., 1873-02-28
A PANIC AVERTED.
PACIFIC MAIL IN WALLET

PAClFlC MAIL IN WhIL-ST.
MR. sTOCKwELL PROMPTLY MEETS HIS Eya.o.
MENrs-AE EXPLANATION or THE sran,
BREAK IN PACIFIC MAIL AND PANAMA.
The excitement in the stock market was :.
newed yesterday morning at the opening OF tho D.
change and most unsettled feeling prevailed auo.-
the dealers regarding the course wh,.e
A. B. StockwelI, President OF the Pacific Mail s,e.
ship Company would pursue In relation to his conr,s
In Pacific Mail and other stocks. Rnmors a. to ,A
stability OF HIS brokers also circulated with deur.
sing effects, and brokers having stocks gong 20 ths
alleged doubtful colleagues hurried their a.
yeries, and upon presenting their seeurts.
demanded certified checks in payment. Derpi.
all statements 10 the contrary. Mr.. stockv,b
aud the suspected brokers met all their engagement.
promptly although n was stated that one sroksrar,
house sbored under the disadvantage Of having man,
cf Its loans called IN and is bank certcatOn mit.1
in consequence Of the rumors. These facts beoon
ing known, It was believed that Mr.. stoel
well intended TO stand by his brokers and Pa.
them from loss through operations on his order,
Confidence gradually returned, and at the close OF ba
hours the feeling Of panic had virtually d.a,
pcared. Pacific Mail which opened at &c. and declined
5S reacted to 63t. and closed at 6i to ei Panama
Railroad stock opened at 100, sold high 10 ana
closed at 107 10 lO5I
It was generally understood that Mr stockweI h,n
obtained assistance from his friends and from person
Interested in sustaining the stock market AMI that "A
was through their that he had been enabled IN
meet his engagements 30 promptly. General satisfae
ton expressed that not single failure had been rs
ported 10 the Exchange There was much conjecture a.
TO the probable future course OF tho stocks with
which Mr. stoekweu was known 70 be con.
nected such as Pacific Mail. Panama Railroad and
Atlantic and Pacific Railway. One OF the most plaus-
ble and apparently trustworthy statements with refer
TO the sudden break In Pacific Mall and Panama
Railroad. that given to reportertof THE TRsrxs
by leading operator. It was as follows:
STOCK MOVEMENTS EXPLAINED.
The rise OF Pacific NAL above par last Fail was dne IN
the efforts OF stockwell Jay Gould and Henry smith
all of whom carried large number OF shares amount
ing in the aggregate to nearly or quite 20o0e
This gave them a complete control OF the market and
they cOud have put the stock at almost any
figure they pleased. Much OF this stock wa
bought in by these operators at from IS to
Is, and sold at par and above, netting them
very handsome profit. Gouldland Smith drew out hav.
ing disposed OF most OF their stock Smith, it alleged
ran no risk, sockwelI having guaranteed him against
loss in the operation on the condition that he would
carry $1,000 shares for certain time The stock grad
uaIly dropped, and as 1t fell stockwell began 10
purchase, taking considerable between 20 and M
The tendency was downward, but stocksen
well believed and asserted that he could send 10
above par and keep there, and these representa-
tions number OF his friends induced to invest
II.
stock to a large amount. He was apparently OF the
opinion that he could send up the price Of the stock In
the same manner had before been done. This, how
ever he was unable accomplish. Tho Boston fire had
a very disastrous effect the price OF H. and the
successive losses Of steamers which the com
pany has sustained accelerated the down.
ward tendency. Mr.. stockwell compelled
TO negotiate large oans giving the stock as collateral
security. Recently he proposed to Jay Gould TO join
with him again in cOrnering" the market, and forcing
up the price OF the stock but that veteran operator de-
clned to enter into the arrangement, alleging as rea
son that it not good season fos
forcing up the price Of stocks" There as
those unkind enough TO believe that Jay
Could finding that Stockwell was heavily weighted,
deemed it good time 10 break the market and began
to sell Pacific Mail short" stockweil, with difficulty,
managed 10 carry the stock thus offered and TIE pes
frightened and threw blocks OF stock upon the Market
adding to the feeling OF insecurity
What preclptated the panic OF Wednesday. However,
yeTy pts became {tqhtened al the stock run
ming 80 low, and going to stocweD, rendered him hs
stock which he had received MI st9ckwel declined 70
receive it, on the ground taas the da'e b on % %h'n
receive the stock had not arrived and that he was no
note before It fell due The holder the stock became
nervous sold it and represented that stockwei
h, Taa sary was @ soon brned about the sOcs
Exchange, with various embellishments, and was 90
circaated thaJ Mr, stockweH was unable to meet hL
agreements This precipitated the small panic
Of "Wednesday afternoon. II the bankers who
are holding the stock Of Mr.. stockweu
had not come forward yesterday and aided
him in STAYING the tide which was setting In
against Pacific Mail and Panama, there Is no telling
what figure these stocks would have fallen the sale
OF a comparatively small number OF shares on Wednes
day sufficient to depress the former 10 and the Latter
IS points.
Mr.. sTocRwELLs POSITION.
Mr. sockwel says that he is amply able 20 meet hts
engagements and his friends point to the fact that he
has failed IN OF his obligations. The support
given to Pacific Mail and Panama had the effect
also OF aiding nearly all the other stocn
on the list and the day advanced
there was much better feeling among stock Operators
1t is understood that Mr. StOckwe departed for Wash
ngton last evening In obedience 20 the summons OF sas
Ways and Means Committee 10 appear ana TESTIFY con
cerning the alleged improper means used 10 procure me
passage Of the subsidy for the Pacific Mail line one year
ago. -
A reporter Of THE TRIBUNE spoke 10 Mr. stockweh
yesterday in relation 10 statement teegraphed rom
Washington tn the effect that deputy sergeaBtatarni
had left that city Wednesday for the purpose OF Sc
curing the books OF the Company, and compelling th
attendance officers before the ways and Means Com
mittee. Mr. StOckwel stated that there was not tns
sll ghtest foundation for the report.
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THE COURTS.