The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-12-19
PRODUCE EXCHANGE
TRUST COMPANY FAILS
New York Corporation Goes to the
Wall With Over Eight Mil
lion Dollars Liabilities.

the sheep have not been separated from
the goats In Wall street and some Of the
least fortunate Of the new combinations
have been affiliated with the trust com
pany which closed it's doors to-day. The
incident caused feeling OF d-~trust with
regard to the whole class OF Industrial
securities. a. is sufficiently evident fslm
the wide breaches made in the value OF
this class o. securities In the days trad
II is to be noted also that the vory
heavy commitments Of capital 20 the trust
form or enterprise itself and It's incur
siOns on the banking field have aroused
much discussion. It has been obvious for
many months past that a great deal Uf
money mas been locked up by capitalists
IN these new Industrial combinations.
Whlch were becoming burdeusOme 20 car
~ by reason OF the heavy demands for
money In the regular channels the lar-s
absorption Of funds by reason Of the I "
ernments surplus revenues and the ur-
gent needs Of the London money market,
growing out OF the Trausvaal war Last
was the outgrOwth OF the burden OF cop
per stocks.
Thus II was that the trust company fall
ure to-day. coming upon last weeks
events In Boston. aroused the fear that
the suspected class OF securities were on
the point OF suCCumbing 90 adverse fnfft-
thces. In the effort 70 protect these se-
curitieS others were also involved tucIifd-
ing some OF the most substantial stocks
on the list The fall In prices. inst .ad
OF relieving the situation added 10 49,.
weakness with cumulative force by reason
erals.
Before the concerted relief by the Clear
lnS-hOuse banks the money rate leaped TO
~, 40, 100 and. according 10 the official
record, - per cent. Creditable reports
assert that lS6 per cent was maid Tor
money during the day. The oficiaI report
OF such reaction was lost In the strug-
An idea of the severity OF losses NAV
be gained from few specifications. Thus.
American Tobacco fell an extreme gff..
Metropolitan. 204 Peoples Gas "a. Sugar
iZts; Continental Tobacco liis: Tennessee
coal, III Manhattan, . and Leather pre-
ieTred; Sh. all in the list Of industrials
IN the railroad list such stoc6s as
Northwestern. New York Central. Greet
Northern preferred. Rock Island Southern
Pacinc, the Union Pacifics the Northern
Pacincs, AtchisOn preferred and in fact
the most prominent and active railroad
STOCKS IN the whole list. showed losses all
/ the way from four To nine points
Ihe rallies. with the final easing down
0l the money rate 10 per cent. ran from
nNe 10 ten points. The days transactions
ran up 10 total Of nearly / so 900 shares
which Is the record for "a days business
The excitement was intense all day and
there can be no doubt that large volume
/ OF transactions and a record OF many
quotations We're entirely lost I'm the seetH-
ing turmoil uf brokers and operators.
/ which surged over the floor of tho Ex-
| change and about every post ali day long.
| The changes In prices between sales ram
/ up 10 one, two and even three points both
! covery.
After the close Of the Exchange there
was a meeting Of the Clearing house
members 10 consider further measures for
| safety and relief. An issue OF Clearing
house certificates was discussed. but the
/ bank presidents present decided that tnaL
would not be advisable at present.
meeting Of the Clearinghouse committee,
was called for IL o'clock tomorrow with
a view Of being prepared for action in
| case or further necessity. The demOrail-
Zation In stocks affected the bond market
more or less. but the losses were largely
confined 10 the lower grade issues which
have been subject TO speculation. The
| volume OF investment issues brought on
the market by the severe money strn-
| gency is as yet small.
| This was n red letter day for the bears
on the Cotton Exchange and one OF recE-
oning for the bulls. who have practically
/ had full sway for several months. Prices
went on one and two points with excite
ment az the start. in sympathy with tho
| two points loss in the English market
/ But no sooner had the opening passed
than orders came from all quarters 10 sell
cotton in great blocks. The failure Of tiis
! Produce Exchange Trust Company and ~
/ Henry Allen q Co. in New York were
telling blows AGAINST the bulls. heavy
| slump in New Orleans. a rapid fall in
/ Liverpool and a rise In money to q rate
/ equal TO 1S6 per cent caused prices 20 turn-
/ BILE at a terrific rate.
All the regulation news was discarded.
the one aim Of all seeming 20 be 20 get rid
i OF enormous amounts OF cotton dCCunlu-
/ lated on the late protracted rise.
Houses having extensive interests In
/ stocks and securities were the heaviest
| sellers. presumably for the purpose OF
| better protecting interests on the Stock
| Exchange. The South and West were also
/ large sellers. and futures went of thirty
/ five points and over. Late In the day
| there was something OF n reaction ON
proft-taking by shorts and quiet new
/ buying for parties believing the market
entitled to a decided uplist. The close
was fairly steady. with the present crop
| positions q 20 rs points net lower. The
/ far or new crop months were but nine 20
/ ten points lower. Trading was by far the
| heaviest in several days.