New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-08
RALLIES FOLLOW BREAKS.
EXCITED COURSE OF STOCKS IN WALL
STREET.
DUE TO THE ATTITUDE OF BANKS TOWARD
THE UNDERGRADUATES DEALERS
RUSH TO THE RESCUE.

| over Wall Street for several days. broke yester
day morning dealing disaster to scores and hun
dreds OF Stock Exchange operators and specu
lators who saw their profits and their cash
margins washed away before their very eyes
Not before in many day have such violent de-
cllnes and phenomenal rallies in so many issues
occurred in the stock market
The catastrophe did not come without warn
ing, for the attitude OF the banks toward the
so-called "industrlals" had been matter Of COM
mon knowledge for some time. and IT the
refusal OF the banks to make further loans on
shares OF this class which precipitated the crisis
in which the "industrials' and the local traction
stocks suffered most severely, while the stand
ard railway stocks declined in sympathy with
them. Brokerage houses too. have been send
ing to their customers letters Of which the fol-
lowing Is q specimen, the effect being to add to
the pancky feeling
Owing to the fact that the banks and the trust
companies are discriminating against industrials.
We must request you either TO pay IN fun for the
ryIng for you or sell same at the market rae. as
lions.
Yet the day, exciting It was to all. and dis
astrous to many could not fairly be called a
day Of panic If prices went far below the level
Of the first OF the week. they touched only what
were a few weeks ago regarded as high figures,
and in many notable cases the declines were
nearly evened up by the subsequent advances
before the close Of business. 1t seemed to be
the general opinion that there was real
scarcity OF money, but that the inability Of
brokers to obtain loans from the banks on any
sort OF ''industras," good, bad or Indifferent,
was the compelling cause OF the crisis. II is re-
called that the experience Of American Sugar
Refining Company stock when it first came
upon the market as similar to that which the
new "ndustrials' are now going through. The
banks would have nothing to do with Sugar
stock. so the sugar company deposited money
with stock Exchange houses and had them loan
it on the stock. and the banks by and bye came
to regard the stock with more favor Flower
& Co. yesterday lent large sums on Brooklyn
Rapid Transit stock and other issues with which
they are identified and thus did much to hold
up the market.
AS HIGH AS Is PER CENT.
Money yesterday opened at per cent and
ruled as high II per cent. Several large
houses were heavy lenders. principally Flower
& Co., Moore & Schley H. b. Hollins e. Co.
and H. l.. rockingham. Flower & Co. are re-
ported to have lent in all fully 100000,
large part Of which had been placed with them.
made loan Of 100000 and one Of their other
loans was Of 100000 at per cent. There
was one failure in the course OF the day-that
Of DimoclI & Co-not important failure. al
though the bears used it with great energy as a
help toward breaking down prices.
The opening quotations were in practically
every case the highest OF the day although
lower than Thursdays last figures The selling
quickly assumed large proportions. and prices
began their downward course, especially in the
industria,s and traction issues the Flower
stocks" faring worst Of all. In the first two
hours nearly a million shares sold, the
bottom prices Of the day being reached soon af
ter II when the market rallied on heavy buy
ing by Flower & Co. and other important
houses Brooklyn Rapid Transit had one Of the
most noteworthy declines OF any stock on the
list. 1t opened wide" at 11S to 120, and in a
little over hour had sold away down TO 1Ooi3
a drop Of about ii points. but recovered so
much Of its strength later on that it closed at
1862, net decline Of only 0A per cent, as COM
pared with Thursdays close.
Metropolitan opened at 249, sold down 10
points to 234. before T. o'clock. and closed at
246%, only 81 per cent under Thursdays figure
New-York Air Brake. which opened at 49,
" ent to 1G1 loss of 10 per cent and closed
at 1888, a net decline from Thursdays close OF
1914 went off 12ls points, to II. and closed at
5344 a loss OF 81 per cent. Peoples Gas opened |
at 123, quickly fell all the way to liz. and on
good buying at the low point. recovered much |
Of its lost ground. closing the day at l2O14 a |
net decline OF only 81 per cent. Manhattan |
did pretty WELL opening at lis. going as high |
as 1i9A and as low as III. and closing at 1l1S4, |
a net decline OF "a per cent Federal Steel |
common started at 81. went up y point and |
down to 5719. and closed at 63A. net loss of
only IA per cent, the preferred suffering just |
the same loss for the day.
COURSE OF L. g. RUBBER COMMON.
United States Rubber common. although it is
an industrial" showed by its course in yester- |
days market that it is regarded as safe and |
sound stock for 1t fuctuated within extremely |
narrow limits between 4S and 81. closing at 80. |
a net loss for the day OF only 15s per cent. AL
though the directors failed to declare a dividend |
)n the common stock this week, II is well UNI /
leWtood that the earnings had been ample to |
warrant the payment OF dividend, but that the |
Board, having regard to the continued pros
perlty OF the company and desiring to strengthen
is position, deemed 1t desirable to apply these !
earnings to the creation of a substantial surplus.
The company has large amount Of quick
assets and IS believed 70 be in an exceedingly !
strong position.
The decline began yesterday with failures by
of many firms to respond to calls |
or more margins to make up for the losses In |
Thursdays decline When the necessary add
onal margin was not forthcoming. the broker
vas forced to sell out his customers holdings
n order to protect himself: and extensive short
selling accelerated the downward course Of |
prices. helped by the uncoverng OF many
'stop-loss" orders as prices kept declining point
after point.
There authentic story told OF Gus
Cmer OF one well-knOwn house who on Monday
led seven thousand shares, which represented
profit to him OF SlS0.O00. His brokers vanly
Urged him then to realize and put his money in
he bank. but he held on. that he would
peedily clean up" S250,000. Last night his
holdings were just thousand shares. the
tber shn Of
i 80 600 paper profits having been swept away
Another instance was OF "A man living five hun
lred miles away. who carrying twelve
thousand shares with firm here. His brokers
red In vain for three hours yesterday 10 reach
lin by telegraph. and finally had to close out
lis entire holdings. The times being so
roublous. margins new accounts were ma
erially raised yesterday. 20 per cent being de
handed on "industras" and 10 per cent on
old railroad stocks. \ prominent banker said
esterday in discussing the stand taken by the