The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-12-19
A BAD, BLACK DAY
ON THE EXCHANGE
Values Come Crashing Down
on All Sides.
Beginning OF A PANIC
CLEARING HOUSE BANKS CAME
TO THE RESCUE.
OFFER 100000 ON EXCHANGE FLOOR
Failure of Newly Organized Trust Company
and Of Firm of Bankers and Brokers,
Together With Wild RumOrs, Re-
sponsibIe for Cen 1itions

sponsble for Ccn1itons,
New York, Dec 1S.-Panic conditions
developed on the Stock Exchange this
afternoon with the imperative need Of
money developed by the violent contrac-
tion in values. Stocks were being
thrown over without the slightest regard
10 the price they would bring and dis
tressing sacrifices of values No end to
the helplessness of the situation seemed
in sight, when, in the last half hour Of
the market some S10,000000 was offer
ed on the Stock Exchange by the CON
certed action Of the clearing house
banks to force the rate arbitrarily down
to six per cent. without regard to the dis
tracted bidding at higher rates. which
was being done by other brokers for dis
tressed operators. The collapse in the
money rate checked the decline and
drove the bears to cover. The recoveries
produced by their urgent bidding were al
mGst as violent as the declines had been,
but the losses were by no means entirely
retrieved. Large offerings Of stocks
continued at he rally, and at some points
Of. the list prices broke anew before the
close. making the closing exceedingly ir-
regular and unsettled. The excitement
continued TO he end, with sentiment look
ing forward for the deyelopmqmt of an
other day The seriousness Of the crisis
has called forth the best efforts Of power
ful and conservative financial interests.
who are busy concerning measures to
tide over the money difficulties which
beset the stock market. and which. by
reason of their extent and the import
ance Of the interests involved, threaten
to affect the country's business inter
ests, unless obstacles are opposed.
So far as actual news was concerned
today. there was a suspension by a newly
organized trust company and by firm
Of bankers and brokers who have figured
as traders in stocks to an extent of some
Importance. Neither event in itself
would have been sufficient precipitate
a crisis. But they were supplemented
with whole crop Of wild and incoher-
ent Fumors which spaerd no interest.
however powerful, long established and
hitherto free from suspicion it may have
been. One would think from the tone
of some Of the gossip that was flying
about by telephone, telegraph and by
messenger boy or by whispers and even
by sh0utings in the lobbies of the Stock
Exchange, that the whole financial fabric
had been undermined and was about to
tumble in ruins. Yet the day closed.
wi h two failures above mentioned as the
sum total of disaster SO far as admitted
insolvency WINS concerned. The reason
for the widespread effect upon sentiment
OF the trust company's suspension was
that it was one of large number of in
lines and which have thriven upon the
multiplying of securities incident to the
industrial combinations which have been
feature Of the past year.
The securities of these combinations
as a class have been in disfavor in Wall
street for many weeks past and in fact
ever since the headlong imitation in thier
prices and subsequent collapse last spring.
Some of the least fortunate of the new
combinations have been affiliated with
the trust company which closed its doors
today. The incident caused a feeling OF
distrust with regard to the whole class of
of industrial securities, as is sufficiently
evident from the wide breaches made in
the values of this class of securities in
the days trading.
The special committee appointed to
examine the affairs of the company
organized by electing Edwin Gold chair
man. The committee was IN session all
the afternoon and toward the carly rart
of the evening. The result Of the com
mittee's deliberations is given in the ap-
pended statement.
'"The special committee consisting OF
Messrs. Gould, Bidwell, Maher. Brain
erd and Armstrong, appointed by the
Board of Directors of the Produce Ex-
change Trust Company to look after its
assets aud affairs, have examined the
condition of the bank as fully as the linn
ited time at it's disposal has permitted
The committee is well assured, as a re-
suit of such examination that every de- |
postor will be paid in full. and that a |
large surplus will remain for the stock |
holders. The difficulties of the company
are the result of the locking up Of an
undue proportion of its funds in loans |
not immediately realized. and it is |
believed it will eventually realize d very |
large percentage of the amount loaned |
The committee is endeavoring to effect /
arrangements for the early payment OF |
the depositors and also expects to issue
a fuller statement at a later date
Superintendent Kilburn, Of the State
Banking Department says tnlt he
warned President Beall of the condition
of the bank, but that the facts were
not communicated to the directors.
WON'T AFFECT. THE SEABOARD.
Baltimore, Nd, Dec. Isl, William