The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-05-14
Prices Of Some Stocks Hammered
Down at an Alarming Rate When
the Opening Signal Was Given.
NEW YORK AIR-BRAKE SHARES
FORCED OFF FROM 1s5 TO 1875, A
Loss OF SIXTY POINTS.
Brooklyn Rapid Transit, Federal
Steel and Peoples Gas Also Pound
ed-The Losses Partly Recovered.


NEW YORK. May 13-A reference to the
decentralization in security values which oc-
Cured on the New York Stock Exchange to-
day requires a resume of the dominant in
huences of a month past 70 explain the two
violent breaks in prices of industrial special
ties during that period. On April the mar
ket became semi-panicky and declines from
5 to J5 points were made in various stocks
on enormous liquidation impelled by the con-
servatism of the banks in refusing accom-
modation to borrowers on industrial colat-
eral. except on what were considered by
some as exorbitant rates of interest. The
severe fall in prices weeded out a raft Of
speculative commitments and the elimina-
ton Of pyramidal accounts was pretty thor
| ough Some interests considered the finan-
cial atmosphere much clarified by the slump
but the shock to public confidence was not
easily remedied Outside spectators were
| pretty well loaded up with the shares of
many new industrial combinations and the
| shrinkage in quoted value of the securities
rendered the spectators cautious of
| entering the market when the recovery
| set in.
Meantime, in rapid succession, occurred
| the usual crop scare rumors, apprehension
over the monetary situation and host of
other unfavorable influences affecting indi-
vidual properties. The apathy of the public
grew more pronounced and the market mar
rowed down to contest between profession
ais. The condition of affairs removed pow
erful opposition to the bears, and as mat
| ters stood to-day they had only to contend
| with their associates in the board The un-
exceptional success which the Flower party
has had with the securities it is allied with
caused an immense following all over the
country. Nevertheless the public operators
proved to be the most easily alarmed when
vigorous assault was made on the Flower
favorites and liquidated heavily, leaving the
big men Of the crowd who had confidence
in the merit of the stock to check the break
and start rally. The death of the central
| figure in this combination spread consterna-
tion In financial circles, as it was realized
| that owing to Flowers diversified interests
a sentimental alarm woeld necessarily fol-
low and the market might prove unable to
absorb the deluge Of long stock
Before the market opened some brokers
went to the banks and put up additional
collateral in loans they had secured, so as
| to prevent a sacrifice of their securities il
| the fall proved more severe than the margin
| Of safety contained in the loans Commits
| sion houses called on their clients for addi-
tional collateral on the stocks which were
| expected to bear the brunt of the attack.
BARGAIN HUNTERS.
| AS partial Offset to the heavy liquidation
which was promised there was a large con-
tingent down town whose appearance is
simultaneous with financial crisis. They
are known as bargain hunters" who take
advantage Of the low prices to utilize their
savings in purchases Of dividend-payin
shares for permanent investment. While
some Of this class have ample means to take
| hundreds Of shares the great bulk confine
| their orders to fractional lots.
| Hundreds Of excited people thronged the
| galleries at the opening to-day In the
brokers' offices pretty much the same scenes
| were enacted, and as the ticker relentlessly
ground off the quotations which perhaps
meant absolute ruin to some of the specu-
| lators faces blanched and look of unut-
| terabe despair settled on some OF the ven
| turesome traders.
On the floor OF the Stock Exchange tbere
were but few absentees. Around the
various trading posts, where the Flower
| specialties were dealt in were throngs of
men thirty deep, awaiting the drop of the
gavel to commence operations. When the
signal was given there was an indescribable
tumult. hoarse cries and wild gesticulations
making the scene the most tumultuous in
I over twenty years When the ticker re-
corded the opening transactions there was
| a block Of 5000 shares of Brooklyn Rapid
| Transit at from ITO down to 100, the low
| point rejecting break Of 1874 per cent.
| Wide openings were made in all the other
| Flower specialties i, 900 Federal Steel going
| at from Sc down to 50 and 1850 Peoples Gas
at from 112 to 100. Although FIVE hundred
| shares of New York Air Brake were traded
| in at the outset the stock dropped from 1s5,
the opening figure. to 125 the latter indicat-
| ing loss over night of sixty points. Sub
| sequently the price recovered to 164.
The panic in the Flower issues spread to
| a minor extent in other properties. losses
| running from to IL points, with many OF
| the prime securities affected. After the
| opening slump the market turned upwards
| at a lively rate under the influence of
enormous buying Of the leading substantial
| interests in the street. Short covering as
sisted the rise, the bears taking profits as
| quickly as possible, now that they had sue
| ceeded in opening the market down TO an
| advantageous level
| All sorts of costly mistakes occurred
| among the trading element during the ex-
| citement. one broker suffering to the extent
| OF over $4,000. Another had big order TO
| buy at a fixed price and succeeded in exc
| cutting the commission at lower level than
| the figures placed. thereby making a profit
| for the customer OF $4,000 Specialists in
| the different stocks were overwhelmed with
orders and bought and sold so freely that
many OF them could not tell what the net
results were until the days accounts were
settled.
] Dealings through the session were on an