The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-11-01
A TRUST STOCK TUMBLES.
COTTON SEED OIL CERTIFICATES
OFF FIVE POINTS

Disappointment Over the Net Earn
ings and the Retirement of Flsgler
and Constable the Cause of the De-
cline-The Collapse Aided by Batch
of Wild Rumors.
NEW YORK, Oct. 3L-Calamity seemed
to reach its climax to-day for the bulls in
the trust stocks on the stock exchange. The
grief was concentrated in the cotton oil
crowd last night. Everybody was pre-
dieting an immediate advance of
many points in cotton oil certificates,
based onthe rosy programme of con-
verting the trust into a corporation
and reducing its capital from $42, 900, COO to
$50, 100000, all of which was to be accom-
plished at the annual meeting to be held to-
morrow. Not even the surliest bear dared
to express more than a mild doubt of the
success of the plan.
FAILED OF REALIZATION.
But alas for the frailty of promises and
prospects in Wall street. Popular expccta-
ton failed sadly of realization. Imme-
diately on the opening of the market there
was an overwhelming pressure to sell The
first sale was at 4l14, and from that point
decline Instantly set in, which had no
check until the price was hammered down
to 36I. This tumble of five full points
meant shrinkage of over $2,0O0,000 in the
market value of the total capital Of the
trust.
AN UNDERSTANDABLE SCENE.
The scene on the stock exchange battles
description. Nobody seemed able to give
any good reason for such tumble, but the
air was thick with irresponsible rumors.
Some said insurmountable legal obstacles
were In the way of the programme for to-
morrow's meeting. Malicious slate bearers
invented and proclaimed stories of defalca-
ton and other criminal Irregularities in the
management. All these shameful reports
we're promptly and emphatically denied by
the trustees and other officials of the trust,
and on such denials the market rallied to
SO, at which price it closed.
To-DAY's MEETING
The NEWS correspondent was reliably in
formed tonight that at the annual meeting
tomorrow everything will be done which
had been contemplated-tha is, all neces-
sary steps will be taken to the reorgani-
cation as heretofore desired, and the de-
tails of the plan perfected without delay
The real reason for most of the decline to-
day was probably because of the serious
disappointment which some prominent
insiders felt at the annual report, which
Will De ouDulLbeQ az 5 meeting
The showing of earnings for the last year
is by no means flattering. For the first
six months the net profits were entirely sat
isfactory, but the last six months they were
bad.
THE NET EARNINGS.
The net earnings for the year amounted
to a little over 81, 100000 which is at least
Sl,0O0,000 less than was officially predicted
Several of the mills belonging to the trust
have been shut down because they have
proved Improbable, and it is said that sew
eral more will probably have to be closed
for the same reason. The corporation into
which the trust is to be resolved will be
known as the Cotton Oil Company of New
Jersey.
After the close the decline was explained
by the announcement that Messrs. Flagler
and Constable, two of the directors, had re-
fused to serve longer on the board and had
sold out their stock