Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-11-14
BRIDGING IT OVER.
North American Company Borr0ws
$12,O00,000 for Present Aid.
EXCITED TRADING In THE STOCK,
The Situation is Now One of Better Promise
for the Company.
MEMORIES OF WILLARD CALLED UP

ESPECIAL TELRGRAM TO THE DrsPArcHI
NEW YORK, November 13.-The market
for North American stock this morning re-
vived in many minds memories of the col
lapse of Mr.. Wizards enterprises seven
wears ago. The news that the management
of the North American Company and its
creditors had agreed that the last named
should undertake 10 help the company out
of its difficulties was apparently construed
by weak holders of stock to mean that
all of tine assets Of the company would be
required to pay its debts and that nothing
would be LETT for the shareholders. Inac-
curate statements as to the condition of the
company and as to the functions of the COM
mittee selected by the creditors to protect
their interests, which were printed, helped to
intensity the alarm of speculative holders of
the stock.
The first sale was at 16 as against 1871 at
the close. Within the space of a minute,
the price further declined to z, from which
there was quick recovery to about II. The
early trading in the stock was enormous, and
the interest was so great that nearly all of the
brokers focked to the group dealing in the
stock.
For few minutes the rest of the market was
neglected, and all other parts of the board
room were almost deserted. The excitement
was over in half an hour. Still, dealings for
the remainder of the day were very large, and
the price did not recover much, huctuat1ng be-
tween and IL.
BORROWING s12,OOO,OOo.
With the view of giving all the stockholders
of the company as explicit information re-
garding their property as it is possible to give
at this time, its officers made late this after
noon for publication an informal state
ment of what has taken place during
the last few days. The company is
borrowing in round numbers Sl2,O00,0 600
of about ten of the strongest institutions and
but principally in this city. All of this money
is borrowed on time. One loan fell due on
Wednesday and another matured to-day. Both
have been extended.
pany that the loans shall at all times be mar
gined to the extent of 30 per cent, and that
should the company fail to keep that margin
good, the loan may be considered due and
be closed out by the lender, by SELL
ing the collateral at public auction,
or upon the Stock Exchange. When
had been but all Of
them have been completed since. Singularly
enough, no one seems to know much about Mr..
Wizards movements or how his interests are
pany and of his brokerage firm. The subject
does not seem to interest those with whom he
has been associated.
A FORMAL STATEMENT.
The following statement was furnished for
publication this evening:
"A statement having appeared in the public
prints that the committee appointed at the
meeting of the creditors of the North Ameri-
can Company was appointed with authority TO
liquidate the said company, I desire, as
the Chairman of that committee to state
that the meeting was meeting solely of the
creditors of the North American Company,
called at the instance of that company for the
purpose of preventing the forcing Of the Sc
curities held by the creditors as collat-
eral for their loans for sale upon the market.
And the said committee was appointed solely
for the purpose of protecting their own inter
ests, and in no wise for the purpose of liqui-
dating the affairs of the North American Com
pany. 1t will at once be seen that the appoint
ment of the committee for such purposes was
not only in the interest of those holding the
obligations of the company, but also largely for
the benefit of the North American stockhold-
ers. This course prevents any sacrifice of the
collaterals held as security for the loans made
by the North American Company.
r. &. RoLSToN. Chairman of Committee.
The market for the Northern Pacific stocks
was strong all day until the last hour, when
what appeared to be concerted raid was
made upon the preferred stock, which
carried the price down or points. The bears
appeared to be working upon the theory
that the North American Company's large
holdings of the. Northern Pacific stocks are
liable to come upon the market at any time, or
that they are likely to be fed out on the Stock
Exchange. 1t has been shown above that that
theory is untenable,