The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-05-14

Oh the oaVel IN the corner Ahere
the Flower Stocks Were Handled
LOSSES Ranged From Three to
Sixty POints-BrOl<ers Call for Adj
ditfOnaI Margins to Save Losses.
NEW YORK, May ia reference to
the. decentralization in security values,
= which occurred on the New York stock
exchange today, requires a resume of the
dominant influences of a month past to
explain the two violent breaks in prices
of industrial specialties during that pc
riod. On April the market became
semi-panicky and declines of from 5 to
Is points were made in various stocks on
enormous liquidation, impelled by the
conservatism of the banks in refusing &C
commodations to borrowers on industrial
collateral, except on what were consid-
cred by some eXorbitant rates of inter
est. The severe fall in prices weeded
out a raft Of speculative commitments
and the elimination of pyramidal &C
counts was pretty thorough. Some in
terests considered the financial atmos-
phere much clarified by the slump, but
the shock to public confidence was not
were pretty well loaded up with the
shares of many industrial combinations,
and the shrinkage in quoted values of
the securities rendered the spectators
cautious of re-entering the market when
the recovery set in. Meantime, in rapid
succession, required the usual crop scare
rumors, apprehension over the monetary
situation, and a host of other rnfavor-
able. influences, affecting individual. prop
critics. The apathy of the public grew
more pronounced, and the market mar
rowed down to contest between profess
SIGNALS.
BEARS IN CONTROL.
The condition of affairs removed pow
erful opposition to the bears, and as mat
tiers stood today they had only to con-
tend with their associates on the board.
The unexceptional success which the
Flower party have had with the securi-
ties they are allied with, caused an i'm
mense following all over the country
Nevertheless the public operators proved
to be the most easily alarmed when a
vigorous assault was made on the Flow
er favorites, and liquidated heavily, leav-
ing the big men of the crowd who had
confidence in the merit of the stock to
check the break and start "a rally. The
death of the central figure in this COM
bination spread CONSERVATION in financial
circles, as it was realized that owing to
the Flower diversified interests a senti-
mental alarm would necessarily follow,
and the market might prove unable to
absorb the deluge of long stock.
Before the market opened some brok-
ers went to the banks and put up addi-
tional collateral on loans that they had
secured, SO as to prevent loss of the
fall proved to go below their margins.
The commission houses called on their
clients for additional collateral on the
stocks which were expected to bear the
brunt Of the attack.
AS a partial offset for the heavy HQui-
dation which was promised, there was a
large contingent down town whose APP
pearance Is simultaneous with a finan-
cial crisis. They are known as bargain
hunters" who take advantage Of the low
prices to invest their savings In dividend
paying securities as permanent invest
ments. While some of these men were
ready to take hundreds of shares the
great bulk confined themselves to frac-
uonal securities.
EXCITEMENT RUNS HIGH.
AEONQS lnrO0SeQ the S2ll6r1eS ana
great excitement prevailed on the foor.
In the brokers' offices much the same
scenes prevailed, and as the ticker
ground out the quotations which perhaps
meant absolute ruin to some of the spec
ulators, faces blanched, and a look Of
utter despair settled upon the faces Of
the more venturesome traders.
On the floor of the exchange there were
few absentees. Around the trading posts
where the Flower specialtjes were dealt
in throngs Of men thirty deep awaited
the drop of the gaVel to commence ope
rations. When the signal was given there
was an indescribable tumult, wild cries
and gestures making the scene the most
tumultuous seen in many years. When
the secretary posted the opening transac-
lions there was block of q, 900 shares of
Brooklyn Rapid transit at from ITO to
100 the low point rejecting a drop of
1SA. Low figures were reached In all the
Flower specialties. 1000 Federal Steel
going at from 56 down to so, and 10,o00
Peoples Gas at from LIP to 100. Although
only 500 shares of New York Air Brake
were traded in at the outset the stock
dropped from 1876, the opening figure to
LIS, the latter indicating loss over night
of 60. points. Subsequently the price re-
covered to 1884,
FORTUNES WON AND LOST.
The panic in the Flower issues spread
to a minor extent to other properties,
losses. running from to IL points, with
many of the prime securities being affect
ed. After the opening slump the market
turned upwards at rapid rate under
the influence of enormous buying by In
1luential interests. on the street. Spot
covering assisted the rise, the bears TAX
ing profits as quickly as possible now
that they had succeeded in forcing the
market down to an advantageous level.
All sorts of costly mistakes occurred
among the traders during the excitement.
one broker suffering to the extent of over
$4,000. Another had a big order to buy
at a fixed price, and succeeded in execut-
ing the commission at a lower level than
the figure placed, thereby making a profit
for the customer Of 100000 Specialists in
the different stocks were overwhelmed
with orders, and bought and sold SO free
Iy 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 enormous scale, transactions for the
first hour exceeding 100000 shares Con-
fident assertions by the Flower firm as to
their ability to protect their securities
and favorable expressions from other
leading financial interests caused bet
ter feeling as the morning progressed and
prices recovered violently. Tho rise, how
ever, eliminated after the appearance of
the bank statement which was construed
by some unfayorable, Enormous selling