Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-11-12
"vILLARD STOCKS, FALL.
Nearly . Panic Is Caused by the Drop
In Pricea


In Pricea
| FAILURE OF THREE FIRMs-THR CLEANING HOUSE,
ASSISTS THREE BANKs-A GENERAL FKKLINa
THAT THE WORST Is ovKR-rIoHTxEss OF
MONEY THE CAUSE
There was almost panic again in Wall street
yesterday, says New York special to the Phila-
delphia Times, and the trembling shook three
financial structures. History has repeated itself
In Wall street. The present disturbance 10 .
repetition Of tie two preceding ones. In the
great depression Of 1873 the first to go were
the Northern Pacific stocks, which were then
controlled by Jay Cooke, who went down in the
wreck. The Northern Pacific stocks led in the
decline Of 1884 and buried in their ruins Henry
Willard, who was the master spirit in them.
In the heavy decline which has been working
vast damage to values in the past day or two the
Northern Pacific and its allied stocks have been
foremost These stocks are controlled now, as
in 1884, by Mr.. Willard. The principal Of the
stock. In the North American Company is
vested the practical ownership Of the Northern
Pacific railroad. Another important Willard
stock is the Edison General Electric Company.
They have all fallen away day after day in
value, and a. they have wasted millions have
FAILURE OF vIILARD's BROKERS.
Despite the fact Of the three failures, there
was not as much excitement in Wall street yes
terday as there was on Monday. The general
tone Of the stock market was better, although
there was tumultuous drop in North Ameri-
can, Northern Pacific and Edison General Elec-
trio Company. When the failure of Decker,
Howell & Co., Mr. Wizards brokers. was an
nounced Decker, Howell h Co. and Mr.. Willard
were the subject of comment From the open
ing OF the market, for it was known. or at least
expected, that the failure of the brokers would
be announced before the day was over, there
had been stories OF their great need for money
and Of their inability to obtain it. Surprise
was expressed that Mr.. Willard did not come to
the rescue of the brokers, in order to save the
reputation of his stocks The other firms to
suspend we're Charles NJ. whitney l. Co. and
David Richmond, as announced in yesterdays
STAR.
CLEARING HOUSE no THE RESCUE.
The current sensationalism, so far as the
banks were concerned, had much more inven-
ton than fact in it. Yet there was undeniable
apprehension in banking circles. Bankers
would not admit this freely, but early in the
day there were conferences among representa-
tives of clearing house banks and the banks of
the New York Clearing House Association de-
termined to provide against every possible
sociated credit IN behalf Of every bank in the
association The associated banks of New York
have available assets of $95, 100000 Against
this it was voted to issue clearing house certifi
Gates in such volume as the situation might
suggest or require.
MONEY KEPT OUT OF SIGHT.
There is almost universal agreement among
leading New York bankers that the money
markets recent range and tightness came
through artificial influence. Funds have been
locked up. taken out of ordinary business
carry forward the bear campaign of depression,
apprehension and quotation smashing. The
provision Of clearing house certificates I'M
limited, il need be- up to eos. 600, 900, will. Of
course, put to rout all these manipulative
schemes.
Said member Of the clearing house COM
mittee largely instrumental in bringing about
the official action: This ends the money mar
ket trouble. The pinch is over"
The question that everybody asked when the
stock exchange closed was whether the worst
was over. Fear still dominated tho street. The
dealings amounted to nearly three-quarters Of
million shares, and in addition there we're
transactions in bonds to the extent of 81, 0OO,-
600.
THE WHITNEY FAILURE.
Shortly before the failure Of Decker, Howell
4 Co. was announced the firm Of C. NJ. Whitney
Il Co. was forced to suspend and their holdings
were sold under the rule as announced in yes
terdsy's dispatches to The STAR. The counsel
for Whitney L. Co. announced that the firm
would be able 10 pay dollar for dollar unless
the panic grew much wilder and wiped out
their margin altogether and the Whitney
National Bank telegraphed that it was sound
These facts helped to stay the panic and bet
ter tone at once became apparent
THE action Of the clearing house today"
ali ssxvoo =.
that taken in 1878, at the time of the Jay Cooke
failure, and again in the troubles of 1884 The
banks will stand by their customers rather
than keep up their reserves. The relief now
arranged will tide people over the hard point {"
IMPROVEMENT AT THE CLOSE.
The improved feeling in the last hour was
shown in another upward movement in the
list and the close was firm and active leaving most
stocks at materially better figures than those
Of Monday evening The Wheeling and Lake
Erie stocks we're the only ones in the usually
active list which showed any material loss for
the day outside Of the Wizards the common
being down ~ and the preferred per cent
North American, however, was 81 per cent
lower. Northern Pacific preferred 11ssss and the
common So.
STOCKS THAT WENT UP.
On the other hand, sugar refineries, which
was helped at the opening by the announce
ment of the names Of the receivers, was 81
higher, Louisville and Nashville %. Erie q,
Union Pacific ~. St Paul ~ and others frac-
tional amounts. This was remarkable in view
OF the financial troubles announced during the
day. together with the fact that money was
held very tightly throughout the day, reaching
y per cent per diem and legal interest on call.
there being no offerings of funds at any time
during the day and tho last loan being made at
the highest figure.
The trading was by far the largest seen in
months, tho sales Of listed stocks extending to
$50, AT shares and Of unlisted 81, 657. To this
amount Northern Pacific preferred contributed
~, 326, the common 81, 500, North American
1866, st. Paul 81, 5S5 and sugar 81, 435.
vILLARD's SUPPORT WITHDRAWN
For time there was evidence that the Viii
lard stocks were being supported IN the stock
market, but at last the props were removed
and in the past few days they have been tum-
bling headlong. The hand that helped them
was naturally supposed to be Mr.. Wizards.
Why he withdrew it, il it was his hand, is con-
lecture. Mr.. Willard has been in Europe for a
year. There have been reports from time to
time that he was on the point Of returning to
information a. to his return. Almost emphatic
denial was made of the report in the street
that he was again in financial difficulties and
that the stock brokerage house which executed
his orders failed because he was unable to come
to its aid.
THREE BANKS UNABLE TO SETTLE.
Rumors Of trouble among banking institu-
tiona were currept all dav lint M ma maid