New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-04-21
FINANCIAL ALARM.
GENERAL BREAK IN THE STOCK MARKET.


wall Street was probably more agitated
yesterday than any since the panic OF last Fall
For days past the stock market has been steadily decn
ing at rate which has struck terror into the
hearts OF the bulls" and greatly eated the bears"
The dealers could not understand the causes Of the
Decline but attributed 1t to the fact that the buls
having no leader, had lost both their pluck and their
money and, becoming demorazed, were utterly at the
mercy Of the bears" who were manipulating the
market and depicting the Golfers Of their opponents.
The decline thus naugurated has been steady and co
paratiYely gentle until the break IN Iron Mountain
Railroad about two weeks at which time TINS par
cuar stock dropped eight per cent in one day Since
then there has been rapid obliteration OF margins,
and the street at large has keeny felt the depression
With the opening of business yesterday, however.
there seems to have been vigorous and systematic at
tack upon the market by the bears Their efforts would
probably have proved only moderately successful had
1t not been for the failure or clique which mas
been loaded up with the stock OF the Column
bus, Chicago and Indiana Central Railroad For
months past the clique had been purchasing the
stock and doing their utmost to sustain the price.
In order to carry the stock they had been obliged to
borrow money and turn" large lots of it with other
brokers. The market having declined they were called
upon TO take their loans and mark their turned stock
down to market prices They were unable TO respond,
and the result that tho oancrs Of the money and
those who had turned the stock threw the securities
upon the MARKET ana t1ere was hn uccAuc
accelerated by the operations OF the clique who tTed 10
unload by selling quantities of the c., q. and G.
Capron Merriam OF No. Wallst., the brokers Of the
combination who had been carrying the stock aud max
ing the loans, OF course Immediately weakened Dy
the disclosures. All who had stock going TO them,
offered Il, and in the OF large quantities
demanded certified checks The firm could not furnish
them, and the report soon circulated that they had
failed This was at first denied, but as they failed to
make settlement with their creditors as they had
hoped, the report confirmed, and the stock
which had opened 800 and sold up To 800 dropped 70
20 amid an almost pancky excitement.
The firm, first ndisposed TO tell the causes OF the
trouble, gradually became more communicative al
though not oquacously SO. Much. also, got on the
street from other and by putting together the
statements the following facts were elected:
The firm came into existence about the time OF the
panic, and was Of fair standing and credit when the
c. c. and l. c. "pOo" was formed they went into 1t,
and became the principal brokers' They purchased lots
OF stock, until they had acquired about H,OOO
shares. The load became oppressive, but 1t
was necessary that they should hold
the stock and sustain sprce They tried various means
such borrowing money on their stock. and short
time ago they turned" large quantity at % that ls
they sold the stock at cash regular, and bought 1t
back buyers option OF co. and 80 days. at an advance
upon the price at which they sold it, This relieved them
of the necessity OF borrowing large quantity OF money
as all they had TO do keep their margins good
until the expiration Of the contracts. BY the terms OF
the contracts either party had the right TO call for de-
posts OF 10 per meet the fluctuations of the mar
ket When stock dropped from 500 to % the dealers
who had turned the stock at 20 sent IN to Capron
Merriam TO put up moro margin. The firm could
not at first comply, but said that they would make
arrangements of some kind. An effort was made 10
settle outstanding contracts on the basis OF 2 and some
OF the creditors signed paper TO that effect but others
held n armt tried TO
some stock, bat succeeded only In breaking the
market the price touching 90 the lowest point OF the
day. 1t became evident that they could not meet their
engagements and after 215 p. the presiding officer
sold out LEO shares OF c. c. ami c. for their account.
Shortly before y Ii. the firm sent in the following
notice;
NFw.YoRK April 90
H. q. CHAPMAN President: We regret to be Obliged TO
announce that we are unable TO meet our contracts
Very respectfully, CAPkoS mEkhiAh
Who formed the pool, was matter OF conjecture
throughout the street Several names were mentioned
but IL was strongly suspected that of the directors
OF the Company were parties IN interest.
The c. and ]. G. is consolidation OF the Columbus
and Indiana Central and the Chicago and Great Eastern
Railroad Companies 1t leased Feb 1869, to the
Pittsburgh Cincinnati and st. LOUIS Railway Company
and by them 10 the Pennsylvania Company.
The total length Of al the lines owned aud leased Is 6S6
miles, They extend from Columbus, Ono, TO Indian
apos from Bradford to Chicago, Richmond via Logans
mort TO the Indiana STATE line The capital stock paid in
is Ss32s SOS; funded debt, $23555lii hoatng debt,
s90e74 cost Of road, S70l4,7l7 q.
BY the terms eff the lease the Pennsylvania Company
operate and pay TO 80 per cent OF the gross
earnings but IL is stipulated that the rental shall always
be equal TO interest on sl6OooO Co. O. ana u hrst
mortgage bonds, and s2 900 Col and Ind second mort
gage bonds Any earnings remaining after the pay
ment Of interest aforesaid must be applied to the inter
est on 100000 C., G. and c. second mortgage oonds,
and also Tor sinking fund on the other pouds
The Directors Of the F SG1phny Are Fevs PFon
D. p. Morgan. W. g. Quincy and Henry Naiiete OF new
York J. j. Thomas. Philadelphia; W. Dennison, D. H.
Norwalk; J. 3 Newman, Indianapolis: and j. N Con
Union CITY s%a y tne presGSni out ,b he
ST. Nicholas Bank Tue bonds OF tue Company are re-
garded fairly but the stock has Geen always looked
The break in c., c. and D. C. was accompanied ny as
NAL rumors affecting other INSTITUTIONS inSe Oan NIX
money to the firm. TRIBUNE reporter investigated
the matter one very large institution loaned certain
small. Another bank mentioned was the German
American but this statement was pto.pby ugeo ny
o E was the ST. Nicholas but Mr. Merriam said mat
bank would not lose dollar oy thef lnie, ana iur
and l. c.. and would not loan upon IL. -. =. an, e.,
that COL Thomas A. scott Of philadelphia interested
in the pool and that his notes had gone 70 protest IN
Gafs that co SCOTS notes hado gone protest
alleged. His notes did go to protest 10 tne septsps
panic, IL Is not peSh S'o w f"'
out many since. ., ,,,.
Further rumors were TO the effect tthat President
Grant would sign the Senate Currency oill ana that
Controller Knox would immediately issue instructions
to National banks requiring them TO can nome Iher
legal reserves now held in the redemption cites In ex
cess Of the amount required under the new Jaw;
that the Central Pacific Railroad was ehueaVorlhg
Tn effect independent OF the Paelne MAIL
Steamship Line whereby toe former was 10 nave the
China aud Japan freight by Few Engnsh inc when
i. m pIy between san Francisco, japan, and China
statement to the effect that tne proposed
combination OF the Pacific Mail Union racine ana
not
last seemed to be confirmed. ..., -
II may help TO account for the weakest spot ater U
Il