The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-05-05
WHOLESALE LIQIlDATIONS.
Remarkable Declir in Stocks in
Wall Street YesterdaT.
THE BREAK IN C5RDAGE.
1t Drops Nine Points, from 81
to IS.
The Market Feverish and Excited AL
Through the Day = Three Firms Are
Compelled to Assign-Other Fail
ures Expected Today.

NEW YORK, May s.-Wa!l street was startled
soon after opening by the failure OF Henry Al
len 6 Co., mouse which because Of its ramih-
cations ia Chicago and other western cities has
commanded large patronage and exerfed an
important influence on change. Almost sim
UNANIMOUSLY with this announcement came the
failure of Is. l.. Smith & Co., and later the sus-
pension OF Schuyler Walden was made known.
AL three concerns owe their misforpuneS to the
remarkable decline III National Cordage stocks
OF which they were heavily long for customers
who failed 20 respond for calls for additional
margins.
Throughout the day there were runaors OF
olher failures impending, and brokers ana spec,
ulators were kept in o state OF trepidatlon ana
excitement by fear OF further calamiues-
LiQuldatiOns were On wholesale scale and in
tense excitement prevailed as the various firms
bold their customers 0uJ, and perfect aY-
alarche OF stocks came upon the market. Inc
drop in prices was unusual even for times OF q
panic, and denoted the serious straits in which
speculal0rs md themselves. me TACT tnat
London and Paris bought heavily and investors
here with ample means also took stocks freely,
failed TO stem the downward current. There
ere many rumors that other nrns Will suspend
tomorrow.
The market opened feverish and excited
under The influence of rumOrs about further
failures. The credit Of three banks had been
attacked, but in every case it is known that
there Was no truth in the reports The feature
al the opening was further break IN National
COrdage stock which closed aI 81 yesterday.
his morning It opened at 81, but almost in
E1antly tel TO Is. Preferred, which closed yes
terday at IS opened at rs and broke TO 80
There we're further liquidations in Sugar. Gen.
eTRl Electric Cotton Oil and AtchisOn. and at
lO.l5 the market was very ragged
Shortly after opening the market was thrown
into panic by the announcement Of the failure
OF Henry Allen q CO., and b. L. SInytne q Co.
LiquidRtions were enormous, especially in such
stocks as the firms we're supposed 10 be inter
ested in. Great excitement prevailed as block
after block came upon the market. Compared
with the hnai quotations yesterday. National
Cordage, preferred, broke Is points TO
90. common II 10 II American sugar 10 STlz.
preferred 2s4 10 80, Whisky 20 TO 2l1s, General
Electric 10 81. Rubber az TO 40. After this
enormous shrinkaEe sufficient buying orders
appeared 10 rally the prices considerably Ma
tional COrdage preferred rose to 10, others
improved 70 points AT IL the market was
still feTerish.
After II a. m, owing TO the continued rumors
affecting certain Wall street firms, the market
continued feverish with htful fluctuations IN
the leading shares Some stocks we're COM
paTafiYely steady while others sustained fur
Their sharp Declines General Electric broke
5l4 TO S5Sz Manhattan SA 10 1854. A sharp
rally followed. American Sugar jumped sud
denly from s. to al1z, Manhattan from 12655 to
$50, General Electric from $50 TO S374. AT noon
the market was f1rner and q more confident
feeling prevailed.
since noon the liquidations broke out in new
places. more especially in railroad stocks. as
for industrial stocks, the more they declined
the greater seemed TO be the inclination 10 sell.
Cordage, common after the Walden failure,
dropped TO -, General Electric TO %, Cotton
v
and preferred TO ll5. Rock Island TO Il X-the
losses ranging from ! TO 4 per cent.
Just before o'clock the call for loans jumped
TO 70 per cent. adding 10 the general demOrali-
zation. TIE scene on 'change was very wild.
Crowds gathered around the trading post of
the active stocks, swung their arms and yelled
themselves hoarSe in attempts TO sell. Going
and coming, brokers and messengers ran as if
Satan was after them. Nobody thought Of
walking, and the gravity Of the situation was
accumulated by the pale anxious faces Of the
Sly rrrli
announced on the Consolidated Stock and Petro-
leum eXchange-Beardsley. Bradford and G.
R. Wilson,
The condition OF AFFAIRS was aggravated dur
Ing the last two hours by the calling in Of loans
by leading trust companies The shifting of loans
incidental 10 tremendous 5hrinEage in values
forced these institutions to adopt extreme
measures.
At the Office Of the National Cordage Co.,
Appleton Sturgis, counsel OF the company, said
the raid OF the bear element on Cordage stock
was not warranted by the condition OF the com
paIy. He Said the company had on hand
earned cash sufficient to pay dividends FOR the
next year. and that diFiuends would be paid.
He said there was absolutely no truth in the
rumors on the street Affecting the financial re-
sponsibllity Of Waterbury, president of the
company He also said that so far as he knew
none Of the principal stockholders in the COM
pany we're spectators, and the failure TO put
Up margins caused suspension OF brokerage
houses which failed today
The selling movement in stocks broke out
afTesh after delivery hour, aid the lowest
prices OF the day were touched in numerous in
stances. General Electric, National Coraage
aud New England, the greatest sufferers, de-
CliDed 10 191a. lSA and 2019, respectively. The
market closed feverigh ana unsettled.
On behalf OF the firm OF Henry Allen & Co.
the failed brokers, it vas stated this afternoon
that the firm had not been speculatng. but was
dong strictly Q commission business, Yester-
day in the slump in values. number of rich
customers failed to put up margins, and the
firm put up TO protect them This was to be
nlade good this morning, but was not so the
firm had TO assign