The Providence news. (Providence [R.I.]) 1891-1906, 1893-05-06
HEAVY LOCAL LOSSES.
The Old Story Of Cotton Oil Repeated In
Yesterdays Decline.
CORDAGE AND GENERAL ELECTRIC.
Many Little Spectators Were Sold Out
for Lack OF Sufficient Margin-Ihe
Large Holders Were Called Upon Time
and ADMINISTRATION Depreciate.

Not since the days OF 1888. when Provi-
dence investors suffered such severe
losses in American cotton oil securities
has decline in stocks so seriously
affected local dealers as that OF the last
few days.
And the condi ions were somewhat
similar except that thea there was but
one stock in which investors were inter-
ested aud now there are a number
though the greatest losses have occ urred
in National Cordage company and in
General Electric company. The presence
of portion of the works Of the Cotton
Oil company in this city nj India Point.
and the fact that the management was to
some extent In the hands OF local capi-
talists.
The holders OF Union Oil. company.
which afterward formed part OF he
Consolidated American company, were
most enthusiastic over previous earnings.
Time aud time again when cotton oil
bad fallen to 65 aud 20 we're the small
dealers given the tip 70 buy and get rich
on the advance that was sure To come
One man was accos ed one morning with.
"why man, you are crazy not TO buy cotton
oil. Here you are taking little prof In
other 81 ocks that you know nothing OF
while If you would only buy few
hundred shares Of cotton oil at 65 you
would never need TO work again"
1t was "A pretty story and many local
investors believe il. They loaded them
selves full of cotton oil at 20. Many OF
the old holders OF Union Oil stock used
that as collateral To margin new Cotton
oil with. The collapse came. Cotton
Oil dropped to 20. Ole or two local cap
talists made money but hundreds OF
thousands of dollars were drawn from
the pockets Of the duped holders.
Thatis the story of the last few days
in ha nf ha at
NasionalGor aye. company has been
tempting bait for the little specula
here for moaths. Every confidence
was had In President Waterbury. He
is "a New England man. His company
has paid IL per cent. dividend and
speculator could easily afford to pay
per cent on his borrowed money when
ne was r-aping IL per cent. in dlvidends
ON its Investment. The roseate hues
painted of the earning capacity OF the
conf any attracted hundreds OF pur-
chasers. Last week when the price
dropped TO 90 it was thought that surely
rock bottom f"was reached. Lit.
tie and big investors rushed in
The little ones used their all as mar
gus The big ones took the stock out
right. The standard loctl brokers ad.
vIsed against sucn course, and were
not anxious to loan on such purchases.
But the bucket shops" took all that
came their way. light money forced the
Cordage company TO the wall. The stock
bought at GO and 20 was Yesterday quoted
AT l515. Margins were called for in vain.
Men nad no more money, and last
night there were very many of they un-
fortunate speculations whose earnings
and speculative gains OF years had been
snept away. BY the large dealers mar
gins were put up almost withous limit
and swept away. They still hold the
stocks. but the money put into them is
inevitably gone.
The actual losses in money from deal
ing la General Electric were small, but
the shrinkage In values has been such
that whenever local holders market the
securities held here will have lost enor-
nous sums. General Electric has b en-
locked upon by the investors Of the East
Side" as one or the most promising secu-
rites OF the country. The enormous
earnings of the ThomI SON Houston co.
anu the Edison company were viewed as
only the foretaste OF the returns which
the electric business was sure To yield In
the future. The feeling was doubtless
intensified by the glowing prosp cts
of the adoption of the electric sys-
thousands of dollars have besn in-
vested by conservative investors in the
stock at prices ranging from par TO lis
The stock was largely taken out Of tie
market, but considerably large blocks
were accepted as collateral bv the local
banks. The losses in this security will
be very large. Twenty to thirty five
points have already gone, aud the con-
fidence OF the public ia the stock is
shaken.
Enormous margins were yesterday
called for by the col Lateral holders when
the stock dropped to 60 The prospect of
a recovery is not encouraging aud
whether their losses are sust iined now
by realizing sales OF some time in the
future they will be severe.
In other stocks, Sugar Trust, Lead
Trust, Distillers, and the industrials in
general were held here in small amounts
aud yesterday many holders were sold
out. In the railroad stocks it is believed
that the Quotations were too limited To
have caused any losses by forced sals@