Savannah morning news. [volume] (Savannah) 1868-1887, 1884-01-31
MAKING THE BEARSCLIMB
OREGON NAVIGATION STOCK
HOISTED UP THIRTY POINTS.

Bedlam in the Exchange-Coliapse Of an
Attempt to Rush Up Northern Pacific
Preferred-The Syndicate and Its Pur-
chases.
To the average operator in stocks Wall
street, says Tuesdays New York Sun.
gave a series of surprises yesterday. At
the close of the day the universal verdict
was, "Jay Gould did it." The purchase
by Messrs. Gould, Sage, Field and others
from the Oregon and Transcontinental
Company Of 10000 shares Of the stocks of
the Northern Pacific system, in order to
prevent that amount from being thrown
upon the market by those VINO had lent
tue company money upon them, was
the basis for a campaign against the bears
Ihe movement opened brilliantly. Who
ever was short Of Oregon Railway and
Navigation stock saw his paper profits be-
gin TO disappear at the opening. The first
transaction was at over 1 per cent. higher
than the closing price SATURDAY. night
and, led on by adrOit manipulation. tie
short interest climbed for the stock from
oo54 up to ll2 regular way and 119 cash
Ihat IS Tor stock available for immediate
delivery.
was called in early in the dav. so that
the unfortunate bear who had not pro-
vided for the emergency had no option
but to climb. Most of them did climb.
Ihe sales for cash, ranging as high as
per cent. above transactions in the regu-
lar way, aggregated ,, 700 shares.
The trouble in Oregon Railway and
Navigation turned the Exchange into
bedlam and aroused the street generally.
This demoraliZed state of affairs was in
no degree abated when the Oregon stock
began to settle back toward its former
level, for indications We're plentiful that
a squeeze in Northern Pacific preferred
was under way. 1t had contributed its
share toward the excitement of the morn
ing by jumping up D per cent. to Az.
Lent stocks were called, and pOrtentous
rumOrs were current Of fabulous prices
that would have to be paid for the stock
in the event of nOn-delVery. In sympa-
thy with these iafluences. the rest of the
market became more or less buOvant and
excited, chiefly because of the demands
of frightened bears.
At 2;l5 O'Clock the Exchange was ex-
pectant of circus. 1t had one. A minute
after time was up the step of the Chair
mans rostrum was crowded with brokers
who clUtched notices to buy in their de
llnquent fellow members. At the first
Whack OF the gavel the rO0mtul of brokers
rushed about the rOstruW. They evidently
had in mind the last vigorous squeeze iii
the stock in October, when unlucky bears
were compelled to pay as much as 7 per
cent. for the use of the stock over night.
The stock had been lending during the
day as high as y per cent, and few
sales Tor cash had been made at about the
same difference above regular way. The
first sale under the rule was at an advance
OF q upon the regular price, the next 4,
and the difference rapidly diminished
until the fifth transaction, which was
made at q below the price regular way.
Whereupon the brokers began to howl
and jeer and otherwise derlde the agents
OF the Would-De cOrnerers, until some of
the delinquent bears who were to be
bought in mounted the rostrum, waving
stock IN their hands and promptly sold it
10 thelr opponents, some of whom were
obliged to throw it upon the market again.
further depressing the price.
Meantime the rest Of the market, which
had become inactive and dropping owing
to the interest centred in the squeeze.
began to be more animated and declined.
The amount Of Northern Pacific bought
in under the rule was 1900 shares.
1t is learned that the syndicate that re-
lleved the Oregon and Transcontinental
Company by purchasing some of its hy-
pothecated securities consists OF Jay
Gould, Russell Sage, Cyrus w. Field, j.
Pierpont Morgan, a. j. DreXeI, and some
Boston and Philadelphia capitalists. The
following is the official statement:
The company has sold to a syndicate 10000
shares Of Oregon Railway and Navigation
stock at IS, 10000 shares of Northern Pacific
preferred at 36, and 1000 shares OF Northern
+ Pacific common at l6, realizing $2.3IOOO0. IL
also borrowed Of the same parties sl,20OO0O
for SIX months on 10000 shares Of Oregon
Railway and Navigation pledged at 80. no ad-
ditional margin to be called for. 1t viii be
remembered that in the $4,000. 600 loan re-
Gently negotiated, the lenders got an option
Of 1850 shares OF each Of the three
stocks pledged as collateral, at par for
Oregon Railway and Navigation. 20 for
Northern Pacific preferred. and 25 for North
ern Pacific common. Supposing that the
lenders take their options. The Oregon and
Transcontinental Company viii have left In
It's treasury nearly 100000 shares Of Oregon
Railway and Navigation, 10000 Northern
Pacific preferred, and 5000 Northern Pacific
common, in place of about 10000 Of eacn
class of stocks held at the time the report OF
the investigating committee was published.
These holdings would probably be sufficient to
control the Oregon Railway and Navigation
Company, whose entire capital stock IS only
100000 shares, but would be far from suffi-
cient to control the Northern Pacific.