New-York tribune., 1891-09-25
WALL STREET EXCITED.
BIG DROP IN MISSOURI PACIFIC STOCK.

A REPORT THAT THE CURRENT QUARTERLY
DIVIDEND Is TO BE pAssED-oTHER sEcURI-
TIES AFFECTED-TALK CONCERNING
UNION PACIFIC PASSIONATE
WORDS ABOUT JAY GOULD.
The name of Jay Gould was heard more fire.
quenty in Wall Street yesterday than it has been
in long time. Nearly every mention was in the
line of denunciaton. Men usually careful in their
utterances were betrayed into vigorous words {;
men of less prudent speech used violent language.
The Stock Exchange was full of cxecrations that
met with scarcely rebuke, and in brokers' offices
and on the sidewalks ntemperate language made
the day q remarkable one in the annals of Wall
Street. The occasion YVES a sensational break In
the price of Missouri Pacific stock, a partial de-
moralization in the general market a conse-
quence. and rumors which credited Mr. Gould with
hostile manipulation OF values. The day was
the twenty-second anniversary of the " Black Fri
day" with which the names of Gould and Fisk are
ipseparably associated, and this coincidence lent
additional significance to the circumstances which
developed the extraordinary talk and passion.
Mr.. Gould at his country home at Irvington
and only the wires could have taken to him in
teigence of the outburst of criticism.
The stock market yesterday opened in a state
Of excitement. RumOrs were current that the
quarterly dividend on Missouri Pacific the
property so closely identified with Mr.. Goulds
name would be passed. food of selling orders
overwhelmed the stock, and the prominent
sellers were Broadway house connected
with the property. The price ran down per
cent in short time; it rallied in the early after
noon and then plunged downward again near
the close. A net loss of nearly 0 points was
IL Tr,,;o iGo hrOly
4 per cent, and other sO-called Gould stocks suf-
fered sharp losses The Street with one voice
declared that conclusive evidence was furnished
I'm these movements that Mr.. Gould was seeking
to bring about a crash. The power he and his
associates possess in the control of money avail
able to stock brokers instantly aroused the dread
of manipulation in loaning rates. Aggression by
the bears received fresh stimulus and the general
market receded la2 points. Money on call was
loaned at per cent, with exceptional loans up
to per cent, but the fear Of higher charges to-
day increased the anxiety.
ANINFoRMAL TALK ABOUT THE STOCK.
The foundation for the story that the Missouri
Pacific had passed postponed the dividend for
the current quarter is simple Jay Gould, Rus
sell Sage and Samuel Sloan are members of the
Executive Committee of both the Missouri Pacific
Railway and the Western Union Telegraph Com
pany. They were all at meeting of the Western
Union committee Wednesday. 1t is said that
Mr.. Gould talked informally about Missouri Pa
ciic's affairs, complaining of the lean earnings of
the quarter ending this month, and speaking of
the advances which he and Mr.. Sage had been
compelled to make pending the conversion Of ST.
Louis, Iron Mountain and Southern Z per cent
bonds into Missouri Pacific consolidated 8
per cent bonds. 1t is said that Mr..
Sloan declared his belief that no dividend should
be paid unless earned, Mr.. Sage adding eagerly:
Yes, yes, be honest don't pay what you haven't
earned!"
From this Informal talk sprang the statements
that Mr.. Gould had decided to pay no dividend
for the present. But the Street was influenced
to belief that the dividend would be passed by
statement in Wall Street newspaper which
has often voiced Mr.. Gould's views, and the news
agencies received information from Gould sources
early yesterday to the effect that the executive
committee had decided to postpone action on the
dividend.
A STATEMENT ATTRIBUTED TO MR.. SAGE.
Jay Gould stayed in Irvington yesterday, as the
hot weather dstresses him, according to his friends
George j. Gould denied himself to reporters who
sought some official light upon the Missouri Pacific
rumors. Mr.. Sage was quoted as saying that no
dividend would be declared on Missouri Pacific at
this time, the question going over until January.
Mr. Sage was also credited with authorizing this
statement: THE paying of unearned dividends
will not be countenaneed by the directors of the
Missouri Pacific II is well-known fact that
the earnings of Western roads for the first eeyen
months of the present year have not justified any
dividends from net earnings. The reason given Is
that the volume of business has not been large
enough and tariff rates have been unpecedentedly
low The directors of Missouri Pacific feel especially
conservative now in view of the present loss OF
about $50 900 involved in the funding of the COM
pany's per cent bonds into lower rate bonds"
At the office of the Missouri Pacific Company
it was said that no meeting of the directors had
been held either Wednesday or yesterday. John
g. Moore. a director, said positively that there
had been meeting of the executive committee
or of the board of directors to pass upon the
dividend question IL is understood that Mr.
Moore is opposed to a postponement of the divi-
dend 1t is also believed that Samuel Sloan is in
dignant at the attempt to dispose of the question
without a formal meeting There are likely TO be
some interesting controversies between the di-
rectors of the Missouri Pacific when meeting
is held disposition exists to protest against
the operating OF the company as family per-
quisitc. Not for months has any meeting of the
board been held nor has any statement OF the
company's finances been available. 1t IS the be-
lief of wellinforned Wall Street men that Mr..
Gould has sold ont most Of his stock in the com
pany. The present developments are likely to
lead TO the uncovering of new ownership or to
change in methods of management, which VIII
result in more publicity TO the financial condl
tion of the property.
1t will he remembered that about two years
ago George Gould, while his father was west,
endeavorcd to have the dividend passed on Nils,
souri, Pacific Mr. Sloan on that occasion Is said
to have shaken finger reprovingly at the young
man and remarked "GcOrer, SIT down. When
YOU are older you will know more" The dividend
was not passed at that time
NOT PLEASED WITH THIS SORT OF coNsERvA-
TISM.
Investors in the company were indignant at
the conservatism" which suggests the omission
of this quarters dividend on the plea that it was
not fully earned in the quarter \ prominent