The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-05-05
DOWN WITH A RUN
Wall Street in a Wild
Turmoil.
BULLS HUNTING FOR COVER.
There Were Several Failures, and
Then the Street Seemed
to Go Mad.
Special to THE MORNING CALL.

New YORK. May 4-Wall. street was
startled soon after the opening to-day by
the failure of Henry Allen & Co., house
which because of its ramificatons in Chi
cagO and ether Western cities has COM
manded large patronage and exerted an
important influence on Change Almost
simultaneously with this announcement
came news of the failure of b. L. Smyth &
Co.. and later the suspension OF Schuyler
Walmen was made known. All three con-
Germs owe their misfortunes to the remark
able decline in National Cordage stocks, of
which they were heavily long for customers
who failed TO respond to calls for additional
margins.
Throughout the day there were rumors ni
other failures impending, and brokers and
spectators were kept in 4 state of tlepida-
tlon and excitement by fear of further
calamities. Liquidatious were on whole
sale scale. and intense excitement prevailed
as various firms sold out their customers,
and a perfect avalanche of stocks came
upon the market. The drop in prices was
unusual even for times of panic, and de-
noted the serious straits in which specu-
lators find themselves.
The fact that London and Paris bought
heavily, and investors here with ample
means also took stocks freely. failed to stem
the downward current, and there are many
rumors Jf other firms 10 suspend tomorrow.
Stocks opened feverish and excited under
the influence Of rumors about failures. The
credit of three leading banks has been at
tackled. but IN every case it is known there
was no truth in the repcrts. The feature at
The opening was further break in National
Cordage. The stock closed at 81 yesterday.
This morning it opened at 81, but almost in
stantly fell tn 2S. Preferred, which closed
yesterday at rs bid, opened a rs and broke
to 73
RamOr has it that firm W which attemp pied
TO bull tile stock market against the wish oil
insiders is in trouble. There were further
liqudatiOns in Sugar, General Electric, Cot
ten Oil and Atchison. At 1915 the market
was very ragged. Shortly after opening the
market was thrown into panic by the an
nouncement of the failures of Henry Allen
& Co. and b. J.. Smyth e Co., ana the
liqudations became enormous, especially in
such stocks as the firms were supposed to
be interested in, and great excitement pre-
vailed as block after block came upon the
market.
Compared with final quotations yesterday
National Cordage preferred broke 2S points
TO So. common II to 26; American sugar
TO S72, preferred 10 S75s cotton oil pre-
ferred 24 to 10; whisky 234 to 2lK; General
Electric > to 81; rubber AZ 10 4j.
After this enormous shrnkage sufficient
buying orders appeared to rally prices con-
siderably. National Cordage preferred rose
to 10, and the others improved / to
points At II o'clock the market was still
feyerish.
There has been good deal OF suppressed
excitement at the Stock Exchange since II
A. n owing to continued rumors affecting
certain Wal'-street firms. The market con-
times feverish. with ftful fluctuations In
the leading shares. Some slosks have been
comparatively steady, while others sue-
tanned further sharp declines. General
Electric broke So to 6594, and Manhattan
S& to 1861. A sharp rally followed.
American Sugar jumped suddenly from 81
to 9lh Manhattan from 126R 10 1870, Gem
eral Electric from S5A to S7s4. At noon the
market was frmer with more confident
feeling prevailing
The condition OF affairs was aggravated
during the past two hours by the calling OF
loans by leading trust companies. The
shifting OF loans incidental to a tremendous
shrinkage in values forced these institu-
tions TO adopt extreme measures. At the
Office of the National Cordage Company,
Appleton Sturgis, counsel of the company
said the raid OF the bear element on Cordage
stock was not warranted by the condition
of the company. He says The company has
on hand earned cash sufficient to pay divi-
dends for the next year. and that the divi-
dends would be paid, and there was abso-
lutely no truth in The rumors on the street
affecting the financial responsibility of
Waterbury. president OF the company. He
also said as far as lie knew none of the prin-
cpal stock holders in the company are spec
ulators, whose failure TO put margins
caused the suspension OF brokerage houses
which failed today.
The market closed feverish and unset
tied, with money Irregular In the afternoon,
ranging TO 20 per cent. and closed at TO-
Governments we're steady. Petroleum,
597s bid
In behalf of the firm OF Henry Allen &
Co :, the failed brokers, il was stated this
afternoon the firm had not been .speculat-
ing, but doing strictly commission bust
ness. Yesterday in the slump in values n
number OF rich customers failed to put up
their margins. and the firm put up $500, 600
TO protect them. This was to be made 60 cd
this morning, but wasn't, 50 the firm had to
assign.
Late to-day Norton of the firm said that
they hoped to he able to resume business in
day or two He thought the firm had re-
sources that would ut it upon It's feet soon.
he said that every account on the bucks
had trustworthy customer behind it. Tie
extent of the failure is variously estimated
at from 100000 TO 81. 100000. but as the
statement of accounts is not completed
these estimates are not altogether trust
worthy.
The general opinion among brokers is that
the failure of Smyth & Co. viii not be an
extensive one and that they will be able to
resume.
Schuyler Walden said that his failure is
due to the drop in cOrdage and the failure