The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1899-12-22
A BLOW At TRUSTS.
Wall Street Panic Through
Fear Of Combine Stocks.
CONSERVATIVES TO THE RESCUE.
Clearing House Banks Forced Exorbitani
Money Rates Down by Putting $4,000,
900 Into the Breach-Two Failures, On,

Rates Down Dy mlO,uOU, |
600 Into the Breach-Two Failures, On,
Trust Company Handling Combine Stock
New YORK, Dec. 19.-Panic condi
tions developed ON the stock exchange
with the imperative need of money de
veloped by the violent contraction IL
values. Stocks were being thrown
over without the slightest regard to the
prices they would bring and at distress I
ing sacrifice of values. In the last halt
hour of the market some $4,000, 900
was offered on the stock exchange by |
the concerted action of the clearing |
house banks to force the rate ARBITRARILY |
down to per cent without regard tc |
distracted bidding at higher rates whi ,b
was being done by other brokers for
distressed operators. The collapse in
the money rate checked the decline and
drove the bears to cover. The recov.
cries produced by their urgent bidding
were almost as violent as the declines
had been, but the losses were by no
means entirely retrieved. Large offer
| ings of stocks continued at the rally
| and at some points of the list prices
broke anew before the close, making
the closing exceeding irregular and un.
| settled.
The seriousness of the crisis called
forth the best efforts Of powerful and
| conservative financial interests, who
were busy concerting measures to tide
| over the money difficulties which beset
the stock market and which, by reason
of their extent and the importance OF
the interest involved, threaten to affect
the country's business interests unless
obstacles were opposed.
There was suspension by newly
organized trust company and by firm
of bankers and brokers who have fig
ured as traders in stocks to an extent
of some importance. Neither event in
itself would have been sufficient to pre-
cipitate a crisis. But they were supple.
mented with whole crop of wild and
incoherent rumors.
The reason for the widespread effect
upon sentiment of the trust company's
suspension was that it was one of a
large number of institutions recently
formed on similar lines and which have
thriven upon the multiplying of securi-
ties incident to the industrial combina-
tions which have been feature of the
past year. The securities of these COM
binations as a class have been in dis
favor in Wall street for many weeks
past and in fact ever since the head
long initiation in their prices and subse-
quent collapse last spring. The princi.
pal allegations against them are over
capitalization, exorbitant prices paid for
constituent properties and vulnerability
to existing and threatened legislation
against combinations.
1t has been obvious for many months
- u
been locked up by capitalists in these
new industrial combinations, which
were becoming burdensome to carry by
reason OF the heavy demands for money
in the regular channels, the large alb.
sorptlon of funds by reason of the gov.
ernment's surplus revenues and the
, urgent needs of the London money mar
ket growing out of the Transvaal war
4 Last weeks threatening situation in
Boston was the ouCSrowth of the burden
of copper stocks, Thus it was that the
trust company failure, coming upon last
weeks events in Boston, aroused the
3 fear that the suspected class of securi-
ties were on the point of succumbing tc
adverse influences. In the efforts tC
protect these securities others were also
involved, including some Of the most
substantial stocks on the list. The fal
in prices, instead of relieving the sltua
+ tion, added to the weakness with cumu
! lative force by reason of the shrinkage
in the value of collaterals.
Before the concerted relief by the
clearinghouse banks the money rate
leaped to so, 20 and 100 and, according
|, to the official record. 1876 per cent
Credible reports assert that 1856 per cent
was paid for money during the day
The official record of such transaction
was lost in the excitement. An idea OF
3 the severity of losses may be gained
from few specifications. Thus, Ameri
can Tobacco fell an extreme 2l16, Met
ropohtan 20H, Peoples Gas Ia, Sugar
1917. Continental Tobacco IL %, Tennes
see Coal II, Manhattan and Leather
II preferred 9A, all in the list of indus
Z trials. In the railroad list such stocks
!. as Northwest, New York Central, Grea
/. Northern preferred, Rock Island, South
}. ern Pacific. the Union Pacific, the North
!. ern Pacific, Atchison preferred and, il
n fact, the most prominent and active
l. railroad stocks in the whole list showed
losses all the way from to 8 points.
The rallies with the final offerings
down of the money rate to per cen
ran from to 10 points. The day.
transactions ran up to total of nearly
1850, 900 shares, which is the record for
days business The excitement wa
intense all day and there can be M
doubt that large volume OF transac
actions and record of many quotations
was lost.
PHILADELPHIA, Dec. 19.-The Phila
delphia stock market did not escape th'
panicky conditions that ruled in th'
New York exchange, though the losses
. here were not so serious save in ont
stock, United Gas Improvement, which
lost 91s points, having opened at l5J
and closing at l45H. Great interest wa
taken here in the Wall street slump. a.
many traders here had invested in New
York stocks. The market held up fairly
well until the last hour, when semi
panic ensued. Union Traction met will
= net loss of 22s, Reading first preferred
!. ~. Northern Pacific A, Camden Stee
1M Iehigh Valley ~. PennsYlYauii