The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-05
In THE MESHES OF A TRUST
Bottom Falls Out of National Cordage,
Causing a Panic in Wall Street.
Several Old Brokers Forced 10 the We'll by the
Heavy Declnes--At Indianapolis There
Is o Growing Demand for Grain.
THE BOND MARKET.

Railways and Others Weak, with Sales
Amounting tn SI.616,0O0.
At New York. yesterday. money on call
was irregular. ranging from 8 to 20 per
cent. the last loan being made at 10. clos-
ing offered &C 10.
Prime mercantile paper. Gas per cent.
Sterling exchange was vsry weak, with
actual business in bankers bills at e4.s43&
Q4s5 4 for sixty days. and s4S7s4 04.ssl4 for
demand
Wall street was startled soon after the
opening. yesterday. by thefailureo of Henry
Allen IL Co., q house which. becanse of it's
rsmifcations In Chicago and other West
ern cities. has commanded q large patron
age aud exerted important influence on
Change. Almost simultaneously with this
announcement came the failure of Il. l..
Smythe q Co., aud later the suspension Of
Schuyler Walden was made known from
the rostrum of the exchange. All three
concerns owe their misfortunes to the re-
markabls decline In National Cordage
stocks, OF which they were heavily long
for customers VINO failed TO respond To the
calls tor additional margins. Throughout
the day there were rumors that other
failures were impending. and brokers
aud spectators were kept in q
state of trepIdation ana excitement by
the fear of further calamitIes. Liquida-
tions were on q Wholesale scale and intense
excitement prevailed 10 various firms sold
out their customers and perfect ayalanche
of stocks came Oh the market Thedrop IN
prices was unusual. even for times OF panic.
and denoted the serious straits In which
speculators find themselves. 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. Just previous TO the close there
was particularly bad break in General
Electric. Cordage. SUGAR and Manhattan.
and the manner In " Inch these stocks were
thrown overheard gave rise TO rumors that
other firms wouid suspend To- morrow
Shrewd investors continued TO buy and the
belief obtains that the panic 10 approach
ing the eliminating point.
The trading reached 7il,912 shares, the
largest total for very long time Over
122.OO0 of unlisted stocks changed hands.
Nationai C0rdsge figured for 1924 $40; Sugar.
5000; st. Paul. 90 $40: Chicago Gas, A. 534;
Burlington IL Quincy. 4S. 200. and Atchison
for 81 IA shares. The declines were 1874 IN
National Cordage. and Is in the preferred;
rs In Sugar, and9 preferred: 5l1 in Cleve-
land. Cincinnati. Chicago Il St. Louis; ga
in burlington * Quincy; 81 in Evansville
g. Terre Haute; 3lz in Pullman Palace Car;
in Richmond Terminal preferred. At the
close National Cordage preferred was 2
above the low est, and the remainder of the
Inst showed rally of Il to / per cent. The
market closed feyerish and unsettled.
The sudden decline In National Cordage
stock 10 partly attributed to discrimina-
ton by the banks against Cordage paper.
and this. together with the recent ad-
dItionsl Issue OF S2.5o00OO of additional
stock, has had the effect of forcing prices
down. The additional stock was issued. It
IL said. in order to liquIdate lot of out
standing paper OF the trust.
Railway bonds aud miscellaneous bonds
were very weak. The sales were 81. 6l6.0 J0
Chicago and Erie tirsts dropped 3. to 90
and "a; Richmond Terminal Trust fives
4ls. To "a; and Wabash seconds. g. to "a.
Reading issues were heavy. Governments
bonds were steady and State bonds were
dull Closing nnOtAtiOna were.