The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-05-05

NEW YORK, May 4-There was another
furry in Wall street today. Soon after
the opening the failure of Henry Allen &
Co, stock brokers, was announced and 4
few minutes later the announcement was
made that b. l.. Smith & Co, bankers and
brokers, at 81 Exchange place. had sus,
pended. These failures, together with
rumors of others. caused feverish and
excited market The great feature OF the
opening was decline of per cent in
National Cordage The stock closed last
night at 81 This morning it fell off i'm
mediately after the opening to IS. Then
followed further liquidations in Sugar,
General Electric, Cotton Oil and Atchison.
The liquldations were enormous, and
the market was thrown into n state OF
panic. Great excitement prevailed as
block after block was thrown upon the
market. National Cordage went as low
as 26 for common, and preferred dropped
70 points, 10 G5 American Sugar fell )
points, to 81; Cotton Oil, 81, to 20;
Whisky, pa, 10 2l y; General Electric, . to
s.: Rubber, & , 10 IS After these enOr-
NOUS liquidations sufficient buying orders
appeared TO rally prices somewhat. Cor
slage rose to 20 and the others gained l 10
g. At II O'Clock the market was still
feyerish,
After II o'clock the excitement con-
tinued, owing TO rumors affecting certain
firms. The movement of stocks had been
irregular some remaining steady, Others
sustaining sharp declines General Elec-
trio broke TO S55{; Manhattan to 1GG1 :, and
Missouri Pacific 10 40. a sharp rally fol
lowed American Sugar advanced A., to
BIZ; Manhattan. 81, to 100; General klec-
tric to S73f, and Chicago Gas TO 72l4. At
noon the market was firmer and more
confident feeling prevailed.
At 2 o'clock there seemed to be no bot
tom for stock prices. Liquidations had
now broken out in the railway group. As
Tor the industrials, the more they declined
the greater was the disposition to sell.
Eordage dropped to % General Electric TO
s.. and Cotton Oil TO GSl5 Among the
railways Burlington broke to IS; St. Paul
TO 7l3I; Rock Island to 76lE, and Michigan
Central TO S9Jz. The prices Of railway
stocks showed ueclines anywhere from 4
10 10 per cent for the day.
just before 2 O'Clock call loans jumped
TO 20 per cent, and this added to the gen
eral Generalization. The condition of
affairs WAS aggravated during the last
few hours oy the calling III of loans by the
leading trust companies. The shifting of
loans incident TO the tremendous shrink
age in values forced these companies to
BdoDt extreme measures
Henry Allen q Co. did a big business
in both grain and stocks. They were
heavily short on Sugar during the Febru-
iry rise, and are supposed to have held
big interest in Cordage recentlv The
house was of the gilt-edged variety The
manager of the firm says that the failure
WAS brought about by the failure of Gus
toners to respond to calls for margins. A
statement OF the company's condition cal
not be had until later.
Schuyler Walden, n member of the
stock exchange since 1881, announced at
l:30 O'Clock that he was unable TO meet
ms contracts. He turned bull on Cordage |
Yesterday and today's big decline knocked |
him out. He said that the suspension |
would be only temporary. Members of
the clearing house committee say that no |
meeting of the clearing house has been |
called, and that the condition OF the banks |
Is such rs TO cause no alarm.
The failure of u Il. Wilson was an /
nounced on the consolidated exchange at |
noon. AT the same place the suspensions /!
of z. +. Beardsley ana T. ID. Bradford |
were announced. These failure are CON /
sidered unimportant.
The drop iu prices was unusual, even |
for times of panic and denoted the serious |
straits in which the spectators find them
selves. The fact that London and Paris /
bought heavily, and that investors here /
with ample means also took stocks freely, /
failed to stem the downward current. !
the rise only served TO Increase the desire /
TO get out just previous TO the close |
there was a particularly bad break in |
General Electric, Ccrda2e, Sugar and /
Manhattan. and the manner IN which /
these stocks were thrown overheard gave |
rise to rumors that other firms would sus-
pend tomorrow.
Shrewd investors, however, continued /
10 buy. and the belief obtains that the |
panic Is last approaching the eliminating /
point. The trading reached 74l. .972 |
shares, the largest total for very long /
time. Over l22,cVO shares of unlisted /
stocks changed hands.
The declines were lSl4 in National Cor |
dage and Il IN the preferred, 7as IN Sugar t
md "a in the preferred, in American |
Cotton OIL, 1s IN Cleveland, Cincinnati, /
Chicago and ~. Louis. s. in Chicago,
Burlington and Quincy, 3 III St. Paul. ; in |
Colorado Fuel. S>4 IN Evansville aud Terre
Haute, in General Electric in Lake /
Erie and Western preferred, 10 in Mauhat-
ian, s in Missouri Pacific in OREGON /
Navigation, 3. in Pullman Palace Car, - /
IN United States Rubber ana in the pre-
ferred, 10 IN Wheeling and Lake Erie pre- /
ferred. AT the close National Cordage
preferred was 2 above the lowest. and the /
remainder of the list showed rally of :. (
10 per cent.
Late this afternoon an informal state
1uent WAS made a regard 10 the condition
OF the affairs OF the National OOrdage COM
pany by an officer of the company. Il WAS !
10 the.e effect that tie National C0rdage com
pany had not applied for a receiver and ,
WAS fully able to pay all dividends for the
ensuing year. The sudden decline in the !
prices of Cordage stock is attributed by 1
the officers of the trust to the fact that at I
this season great deal OF money goes out /
of the city TO outside investors, IN the /
shape of dividends, and il takes some time /
Tor II to get back to the city
Speaking of yesterday s and this moru-
lng's failures and the operations Of the .
stock exchange clearing house. The gov
ernor OF the STOCK exchange said:
If 1t had not been for the existence Of .
cur clearing house, other failures could .
not well have been avoided. Now they
are not likely. ndeT the clearing house
system only the balances have TO be set
;led. Any balance not settled is divided
up among the houses having had dealings
with the house which fails 10 settle. each
one paying its share, and the loss Is so dis
tributed that ii is not felt -
TIRE FAILURES
The members OF the failed firm OF Henry
Allen & Co say that the firm has been
doing a strictly commission business and
that every account had "A trusted Customer
back Of il. In the bad break of market
s-.ueA tls margins OF some important