The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-05-14

New York, May ia reference to
! the decentralization in security values
which occurred on the New York stock
exchange today requires d resume OF
the dominant influences of a month
past to explain the two violent breaks
in prices of industrial SpecialtieS dur
| ing that period.
On April the market became semi
panicky, and declines of from five to
fifteen points were made in various
stocks on enormous liquidation, inn
PEELED by the conservatism of the banks
in refusing accommodations to borrow
ers on industrial collateral, except on
what were considered by some eXorbi-
liant rates of interest. The severe fall
in prices weeded out a raft of Specu-
lative commitments, and the elimina-
ton of pyramidal accounts was pretty
thorough. Some interests considered
the financial atmosphere much cleared
by the slump. but the shock to public
confidence was not easily remedied.
Spectators Cautious.
Outside speculations were pretty well
loaded up with the shares of many ne
industrial combinations, and the
shrinkage in quoted values of securi-
ties rendered the spectators cautious
VI lllt Wutll the
covery came in. Meantime, in rapid
succession, occurred the usual crop
scare rumors, apprehension over the
monetary situation and a host of other
unfavorable influences affecting indi-
vidual properties. The apathy Of the
public grew more PRONOUNCED, and the
market narrowed down TO a contest
between professionals.
The condition of affairs removed pow
-fral 70 Iaa .le
matters stood today they had only to
contend with their associates in the
board.
The uneXceptional success which the
Flower party have had with the securt-
ties they are allied with has caused an
immense following over the country.
Nevertheless, the public operators
proved to be the most easily alarmed
when a vigorous assault was made on
the Flower favorites, and they liqui-
dated 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 cen
trail figure in the combination had
spread CONSERVATION in financial circles
as it was realized that owing to the
Flower diversified interests, send-
mental alarm would necessarily 1UlIow,
and the market might prove unable to
absorb the deluge of long stocks.
Fearful of a Fall.
Before the market opened, some
brokers went to the banks and put up
additional collateral in the loans that
they had secured, so as TO prevent a
sacrifice of their securities if the fall
proved more severe than the margin of
safety contained in the loans. Commits
sion-houses called upon their clients
for additional collateral on the stocks
which were expected to bear the brunt
of the attack. AS a partial offset to
the heavy liquidation which was prom
ised, there was large contingent down
town whose appearance is simultaneous
with financial crisis. They are known
as ''bargain-hunters, who take advan-
tage of the low prices to utilize their
savings on purchases of dividend-pay-
ing shares for permanent investment.
While some of the class have ample
means to take hundreds of shares. the
great bulk confine their orders in frac-
tional lots.
Hundreds of excited people thronged
the galleries at the opening today. In
the brokers' offices pretty much the
same scenes were enacted, and as the
ticker recklessly ground out the quo
tations, which perhaps meant absolute
ruin to some of the spectators, faces
blanched and a look of unutterable de-
spair settled on some of the venture
some traders.
On the floor of the stock exchange
there 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 OPP
erations. When the signal was given
there was an indescribable tumult
hoarse cries and wild gesticulations
making the scene the most tumultuous
in over twenty years. When the ticker
recorded the opening transactions,
there was block of $4,000 shares of
Brooklyn Rapid Transit at from 10
down to 100, the low point rejecting
break of 1874 per cent.
The Market Turned.
After the opening slump, the market
turned upward at Il lively rate, under
the influence of enormous buying by
the leading substantial interests in the
street. Short covering assisted 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 excitement
one broker suffering to the extent of
over $4,000 Another had big order
to buy at a fixed price, and succeeded
in executing the commission at lower
level than the figure placed, thereby
making a profit for the customer of
$50. 600.
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
of the operations were until the days
accounts were settled. Dealings
throughout the session were on an enor-
NOUS scale. transactions for the first
hour exceeding 100000 shares. Conf
dent assertions by the Flower firm as
to their ability to protect their securi-
ties and favorable expressions from
other leading financial interests caused
a better feeling as the morning pro-
crossed, and prices recovered violently
all around. The rise, however, culini-
mated after the appearance OF the bank
statement, which was construed by
some unfavorably, and vigorous sell
ing movement set in, which continued
to the close.