St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-03-02
Remarkable Manipulation Of This
Stock by a Wall Street
Syndicate.
The Demand So Great That the Stock
Lent at 5@6 Per Cent.
Premium.
The Bears Seem to Have the Advantage in
the Chicago Grain Market and May
Secure a Further Decline.
Wheat Weak and Lower-with the
Weather an Important Factor in
Prices-Pork Firm.
NEW YORK.
Especial Telegram to the Globe. |

with strong speculative buying in Lacka-
wanna, Lake Shore and Union Pacific With
in ten minutes Lackawanna loaned at q of
per cent for use. In ten minutes more the
rate was per cent. This was Immediately
in the first hour there was difference of 5
per cent. between the cash and regular, which
was continued with but little fluctuaaon until
the middle hours, when the anx-
iety to cover seemed less strong,
and the premium was lessened
to219 and 8 per cent. Just before the deliy-
ering hour the premium was successfully 5,
515 and per cent, which was followed by
several purchases under the rule ''for non
delivery and just before the close there was
difference of 91a in the stock, selling at
40 regular and 1891 cash at the same time.
We have seen nothing like it since the
Northern Pacific deal last fall. All but
the copper fastened bears have
been driven out of this stock. The
clique was enabled to make this turn from
the fact that large amount, said to be
$4,000, 900 out of a capital Of 5000, 900,
sources. We are informed on authority that
Clafin holds 50, 500, 900 of the stock and that
trust companies had large orders in the
market to buy it at I26 and down. Some of
the order brokers who are in
the stock were all the time express the
opinion that the squeeze may be renewed ON
Monday. There is no doubt that large
amounts of long stock have come out, and
the manipulation can have but one effect,
which is to destroy all trading, either for
long or short account, in the stock. No bet
ter way for buying the property can be de-
vised than the course the cliques have taken
with Lackawanna to day. The granger
stocks very heavy, appearing to be
sold on the rise in Laekawanna.
st. Paul, Northern Pacific and Union Pacific
loaned at premium, and Union Pacific was
advanced very sharply with Lackawanna, but
there was more than enough stock to go
round, and the advance was not maintained.
West Shore bonds we're strong, Vanderbilts
neglected with the exception of Lake Shore,
which was very active, and easily advanced.
The reserve decrease is LOCI, 900.
We understand there were 5000
shares of Northwestern preferred transferred
day before yesterday to one trust company,
and large orders in the market to buy it at
141. The market was all Lackawanna at the
close. Drake sold 5000 shares just before
the gong sounded. After adjournment 100
was bid, and more to buy in ON Monday.
Wall street was very seriously disturbed
to-day by the developments in the stock ex-
change, regarding Delaware, Lackawanna 81
Western railroad stock. For some time Mr..
s. V. White has been large purchaser of
the stock, and according to the general re-
port has acted for pool of which he was a
member and the manager, the other mem
bers of the pool are said to be Mr.. Jay Gould,
the Hon. Russell Sage, H. B. CIaiin and
one of his partners, several dry goods
merchants, and several directors OF the com
pany. 1t has been generally spoken of as
the Plymouth church pool. Some folks think
Mr.. w. Fl. Vanderbilt also was interested.
Shortly after 10 o'clock this morning, the
firm of S. V. White IL Co., which has been a
very large lender of this stock, sent notices
to all members of the board who had Dor
rowed stock from them, and to those for
whom they had purchased stock on Friday,
that the stock must be turned in, and II
the deliveries were turned in on time the
stock would be purchased for the account
of delinquents under the rules of the ex-
change. 4 printed form, drawn according
to the usages of the exchange, is generally
used for such notice, but that sent out by
White & Co. had been specially printed for
the occasion. The date, the name of the
stocks, and, in fact, everything was
printed except the name of the
broker addressed, the number Of
shars and the signature of
the firm. There was an immediate and con-
siderable inquiry for the stock in the loan
crowd, but without much result, except adj
vancing the premium for the use of the
stock. Mr.. Whites young man, who had all
along been one of the early corners in the
crowd and very willing to lend the stock, was
not there and could not be found. Other
brokers who have generally been
lenders had none to spare. Within the first
hour the loaning rate was run up from Il to
per cent. as a premium for the use of the
stock over night. Almost at the opening
there was an attempt to secure stock for de-
livery by purchasers for cash in the market.
The demand that was turned in this direc-
ton, advanced the price for cash stock
to 135 before noon, per cent. above
the market, regular way. Early in the day
the signs of trouble in Lackawanna started a
general covering movement and prices rap
idly advanced. The air was filed with ru-
mors of impending squeezes in other stocks,
especially Lake Shore. Before 2 O'Clock the
price of cash Lackawanna stock had risen to
1917, while the regular market had
advanced from 12S to 1929. Up to 2:15
p. m, the delivery hour, 23,500 shares
had been purchased for cash at prices aver
aging about per cent. above the market.
A few minutes after that hour crowd OF
brokers packed the rostrum of the exchange
and the buying of delinquents was begun.
By this time the price of the stock under the
rule for cash had advanced to 1897
while at the same time it sold
regular way dt Iowa al Juliet
business was neglected to attend to or watch
Lackawanna. About the time Mr.. Whites
orders began to be executed the delinquents
seemed to get hold of good deal of stock
and the price dropped between sales from
139 to 1867. The market list was affected
by this apparent discovery. When the gong
sounded the closing, there was still a crowd
of brokers on the rostrum waiting
their turns to buy in. Of the 5000
shares bought in under the rules nearly two
thirds were upon orders from Mr.. White. II
was estimated that Mr.. Whites checks for
at least s1,00O,O00 were given out without
being certified. After banking hours sever
al handsome transactions were made by
holders of Lackawanna who sold their stock
for cash AID Immediately replaced it by pur-