Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-05-13
FINANCE AND TRADE
Death of Flower Caused Big Break
in Stocks.
SLUMP OF FROM 20 TO 60 POINTS
Whole List Broke in Sympathy
But Later Recovered.
GENERAL MARKET REPORTS
Special Dispatch to The Evening Star

Special Dispatch TO The Evening Star.
NEW YORK. May 13.-The announcement
Of the sudden death of ex-tfov. Flower
came as shock to Wall street this morn
ing and Immediately revolutionizrd ,h.
speculative situation. Decentralization mr.
vailed on all sides. and values were ignored
in a mad rush to liquidate speculative ac-
counts
Simultaneous sales OF the stocks which
had come to be considered as having tho
special protection of the dead fnanciar re-
hected from three TO FIVE per cent differ
ence IL price
The initial trading was all chaotic. and
many unnecessary sacrifices We're made.
Good investment shares were thrown oyer
to protect the Industrial holdings. and for a
time practically no exemptions were ma.i.
in the selling
Later in the day more rational operations
were recorded, and some sharp and well
sustained recovertes were reported
The supreme test OF endurance has been
made and. all things considered the mar
ket has acquitted itself admirably Warn
ings and other mysterious predictions OF a
day Of reckoning have been vindicated from
an unexpected source. The man who did
not wait for the advancement of the mar
ket mas been cut of in the midst Of his aC-
tivi;y.
Interviews as late as yesterday afternoon
assigning reasons for his confidence I'm the
future of his several properties appeared
side by side with the announcement Of his
death.
Wall street has repeatedly asked what
would happen should the Flower stocks
lose their leader, and today it has the an
swer. Declines ranging from ~ to o.
points were recorded in his speciatics
New York Air Brake manipulated from
almost nothing two years ago to 2O4 on
April p, closed last night at 1S5 bid To-
day the price declined from 1914 to 10
Brooklyn Rapid Transit quoted but in
frequently two years ago in the twenties
was taken up to l3I, and closed last night
under a raid at l1Sl2. Today the price was
depressed TO par, and subsequently rallied
10 per cent
Peoples Gas closed at 1Is% last night
and was sold today fifteen points cheaper
International Paper declined about ~ par
cent and the Federal Steel issues from 10
10 per cent by comparison with last nights
prices.
These are the Flower stocks. but the rest
of the list suffered because Of the .sner-
gency created in the accounts which We're
responsible for miscellaneous line
Prices rallied from the maximum low
levels with which the above comparisons
are made. and some very good buying was
reported in the shares in which the market
was only sympathetic. Strong interests
rallied TO the support of the industrial list
anu many operators bought Peoples Gas
Federal Steel and such others OF this group
as were unduly depressed. on the theory
that the event of yesterday affected prices
and not values.
prominent downtown banks offered ac-
Communications freely and announced tha; no
embarrassment would be allowed to follow
the days decline
Ihefe was more organization than Was
expected, and the market has still many
friends. There were wounds inflicted how
ever, which may not appear on the surface
at present, but must sooner or later come
TO the top.
Many accounts lack margins end some
may be overloaded in the effort to support
prices. Stocks will be for sale next week
on rallies in order to Tighten the load In
nauon has been removed as a factor and
now comes the readjustment to th.. new
basis Enthusiasm will give way 10 the
oId-ume elaboration. A feverish market -
70 be expected and afterw8rd exhaustion
From the latter point slow recovery may
follow.
The hanks have gained S. 269. $50 in law
ful money, nearly ali Of which shows in the
surplus, bringing that item up to S21 III. tl25
The loans have been reduced nearly ST. Esl 90
900. and further improvement in this a.
recuon is TO be expected next week