The Wichita city eagle. [volume] (Wichita, Kan.) 1872-1883, 1879-11-27
BLACK FRIDAY.
WALL STREET IN A SPECULATION OY
RAILROAD SEDCKs.
A Day THE EQUAL. OF WfnGH Has
NEVIS BEEN KNOWN.

uTOppeu tUTcc anu lOuT per CCut. at u
time, until before an half hour of busi-
ne. 3 had been over, the Delaware X
Hudson had declined twenty per cent,
land the remainder Of the list all the
way between fourteen and one per cent.
The men who are credited with this
bear movement are Jay Gould, James
II. Kccne, Russell Sage and OrrisOn
Commack, aided by outside spectators
who rushed in an let their stocks go at
any price, fearing lest general panic
would result in wiping their margins
out entirely.
There was great pressure to sell both
for long and short account, and for a
time the stocks were poured out with
out any regard to prices. As the stocks
went tuubling down numerous stock
orders were encountered, which only
added TO the prevailing depression and
plunged The market into semi-panicky
condition. Telegraph orders from the
interior to sell also came pouring inland
the bears improved this opportunity to
assist the general fall in values. The
pressure TO sell was not confined to any
special line, but cxtanded throughout
tic entire list. Prices broke rapidly
with large blocks, stocks being thrown
upon the market and offered at con-
stantly decreasing quotations, so that
| in the first half hour of business, de-
cline ranging from one to twenty per
cent. was established. The fluctuations
during the afternoon were wide and
frequent, and recoyeries and reactions
succeeded each other with great rapidi-
". Late in the day, however, specula-
! ton assumed a decided tone. and the
impression gained ground that the low
est quotations had been reached. This
caused sharp recovery and under
heavy purchases prices rose rapidly, UNI
der the leadership of Colorado shares,
the final dealings showing an advance
from the lowest point of one to two per
cent. The excitement during the up
ward turn somewhat rivaled that of the
downward movement. 1t began to be
apparent during the afternoon that the
great operators who engineered the re-
cent hreak in prices, had been heavy
purchasers Of stocks at the figures of
the morning. This gave courage to the
smaller professional operators and to
the general public, all of whom were
free buyers at the close.
| New York, Nov. 2l.-The Ereaiag
Rosi says al important piece OF news in
Wall street to-day was tho announces
ment of the fast that the Atchison, To-
peka 1. Santa Fee railroad, the rich Bos-
ton company, had completed arrange
ments with the ST. Louis a. San Fran
cisco railroad, in pursuance of which a
railroad is 10 be built from Santa Fe to
San francisco Under the old charter of
the Atlantic a. Pacific railroad. This
charter is still valid. and the land grant
carried with it conveys about AZ, 900, 900
acres. Herds are to be issued to the
amount of 1925 900 ,O6J, secured by these
lands and the road and guaranteed by
the 81. Louis Il San Francisco and the
Atchison. Topeka a. Santa Fe railroads.
| These bonds have been placed on sale
already. The recent heavy advance in
the St. Louis railroad securities are eK-
planned by the news of this arrange
| ment.
The break in the Union Pacific to-day
was caused by the announcement that
| the Atchison. Topeka IL Santa Fc and
the ST. Louis Il San Francisco roads had
Joined hands and intended to complete
the former to San Francisco, and the
marked decline in tho Erie was due
largely to the report OF negotiations
with Vanderbilt by a syndicate repre-
| scnting the Wabash system Of roads for
| the purchase of 100000 shares OF the
| New York Central stock. That such
negotiations have been going on on is
undoubtedly true, but it is also quite
certain that they have been suspended
temporarily at least, and are probably
finally closed without result.
| Tho (r,.o.,L,c raferrinU IN this Sul-
| icct. saws: 1.-The present bear cam
paiyn which looks near. if indeed it has
not already reached its elimination, had
IFS origin strangely enough in trans
action destined TO prove an important
bull clement on the stock market. This
transaction is of 4 magnitude not only
unprecedented but unprecedented in
the annals of the stock exchange. Now
that confused and conflicting statements
of the affair are being made. we present
the following account of the transaction
which will. we are persuaded, prove TO
be correct: Some time ago syndicate
composed of some of the richest Of our
home bankers and Ameaicrn bankers
resident in London, and number of
railway men, proposed to buy from
mderbilt 100,D0Q shares of the New
York Central railway stock and play
upon the London exchange. They, at
the same time, agreed to turn an i'm
mensc amount of traffic over the Cen
trial system of the roads. This would,
of course. benefit The Central system to
a dctriment of the Erie. Thercupon
bear pool was formed to sell 100000
shares of the Erie. This pool. it Is said,
has dcmoralized the whole market eX-
cept the Central system. Should this
negotiation be carried out all the trunk
lines would be benefited except the Erie
In this connection another financial
writer saws: We learn from source
entitled to credit. that Gould's sole OBJ
| icct in breaking the market was to get
back a large line of stocks which he had
sold nj high figures. lie was joined in
the raid BY Osborne and Sage, both of
whom are interested with him in the
| Western and Southwestern properties.
| Yesterday Gould bought back 10000
out OF l00.0 900 shares of the Erie, which
ho had sold. and larger portion OF
other properties Of which he was short.
| The understanding last evening was
that the Erie was the KEY 10 tho market
and that it would be further broken
down in order to get the remaining 4C.-
600 shares. While this was being done
| the market wonid be held under con-
troll by the clique. and after all the Erie
which Gould required had been obtain
ed. the whole iisi would be carried up
ward That there were nc failures yes
terday is due 10 the fact that the ma
| joriry Of the brokers had been combining
themselves 10 legitimate commission
business aud had no speculative interest
in the market. The game in the mar
ket was left 10 the Clique. The battle
was between kcers AMI. Vanderbilt fol-
lowing on the bull side. and the Gould,
Sage. Osborn and their following ON the
bear side. Those who were looking on
and ia opposition TO the spectators.
were warned by their brokers against
doing so unless they had . sufficient
margin. and the majority Of these we're
advised To keep out of the market en-
TREY until it had been turned upward.
Money was active all day. aud this af-
terBeop was rs high as one-half per
cent. Commission and interest was
paid for money on assorted collateral.
Ii is believed that money has been !
locked up within the past three days for |
the PURPOSE of influencing the market. !
In addition 70 this the depression was, !
no doubt. assisted BIZ certain banks |
calling in doubtful loans apd using
sharper security in other loans which |
they held Some of the banks have |
been lax in their vigilance. and sharp |