Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1899-12-19
4 BLOW At TRUSTS.
Wall Street Panic Through
Fear of Combine Stocks.
CONSERVATIVES TO THE RESCUE.
Clearing Kouse Banks Forcsd Exorbitant
Money Rates Down by Putting s1O.oOo,-
900 Into the Brcach--Two Failures, Ono
Trust Company Handling Combine Stocks

velopad by the violent contraction in
values. Stocks were being thrown
over without the slightest regard to the
prices they would bring and at distress
ing sacrifice of values. In the last half
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 ratio ARBITRARILY
down to per cent without regard to
distracted bidding ao higher rates whi III
was being done by other brokers for
distressed operators. The collapse in
the money rate checked tho decline and
drove the bears to cover. The recov-
srios produced by their urgent bidding
were almost as violent as the declines
had been, but tho losses were by no
means entirely retrieved. Large offer
ings of stocks continued at the rally,
and ut come points of the list prices
troke 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 tho importance Of
the interest involved, threaten to affect
the country's business interests unless
obstacles were opposed.
There was a suspension by newly
organized trust company and by firm
OF bankers and brokers who have fig.
ured as traders in stocks to an extent
xxf t,,., al L..
itself would have been sufficient to pre-
mented with whole crop of wild and
incoherent rumors.
The reason for tho widespread effect
upon sentiment OF the trust company a
suspension was that it was one of o
large number OF institutions recently
formed on similar lines and which have
thIiven upon the multiplying OF securi.
ties incident to the industrial combina-
tions which have been Il feature OF the
past year. The securities of these com.
binations as u class have been in dis
favor in Wall street for many weeks
past aud, in fact, ever since tho head
long initiation in their prices and subse-
quent collapse last spring. Tho princi-
pal allegations against them ara over.
capitalization, exorbitant prices paid for
constituent properties and vulnerability
to existing and threatened legislation
against combinations.
1t has been obvious for many months
past that u great deal of money had
been locked up by capitalists In these
new industrial combinations, which
were becoming burdenaome to carry by
reason or the heavy demands for money
in tho regular channels, the large alb.
sorption OF funds by reason OF the gov.
ernment's surplus revenues and the
urgent needs Of tho London money mar.
ket growing out Of the Transvaal war.
Last weeks threatening uituation in
Boston was tho outgrowth Of the burden
Of copper stocks. Thus it was that tho
trust company failure, coming upon last
weeks events In Boston, aroused the
fear that the suspected class of securi.
ties were on the point of succumbing to
adverse influences. In tho efforts to
protect these securities others were also
involved, including some of tho most
substantial stocks on the list. The fall
in prices, instead Of relieving the situa.
tion, added to tho weakness with cumu.
lntive force by reason Of the shrinkuge
i'll the value OF oollat0rals.
Before the concerted relief by the
clearinghouse banks tho money rate
leaped to 90. 10 and 100 aud, according
to tho Official record, l25 per cent.
Credible reports assert Tint 1856 per cent
WAS paid for money during the day.
The Official record OF such transaction
waa lost In thu uxcitement. An idea of
the severity of losses may be gained
from u few specifications. Thus, Ameri-
can Tobacco fell an extreme 2lb, Met.
ropohtan 20li. Peoples Gas Ii, Sugar
la1e, Continental Tobacco lil1, Tennes.
soc Coal II, Manhattan 0 and Leather
preferred "a, all in tho list of indus.
trials. In tho railroad list such stocks
Us Northwest, New York Central, Great
Northern preferred, Rock Island. South.
EN- Pacific. the Union Paciiic, tho North.
ern Pacific, Atcllison preferred and, in
faot, tho most prominent aud active
railroad stocka in the whole list showed
losses ali the way from to 0 points.
The rallies with the final offerings
down ot the money ratio to 0 pcr cent
ran from b to 10 points. The days
transactions ran up 10 u total OF noarly
1880 900 shares, which Is the record Tor
days business. The excitement was
intense all day and there cuu be no
doubt that large volume OF transac.
actions aud n record OF many quotations
was lost.
PHiLADELPHIA, Dec. lO.---The Phila.
delphia stock market did not escape tho
panicliy conditions that ruled in tho
New York exchange, though tho losses
here We're not SO serious save In one
stock, United Gas Improvement, which
lost w points, having opened ut los
hnu closing at li5h. Great interest was
taken hero i'll the Wall street slump, as
many traders here had invested In Now
York stocks. The market held up fairly
well until the last hour. when a semi.
panic elsued. Union Traction met with
net loss. Of 2'6, Reading first preferred
~, Northern Pacific 4, Camden Steel
10, Lehigh Valley ~, Pennsylvania
u and Electric Company of America
IA.
Quotations were moved up at the
close covering part OF the losses The
banks IN this city continued their strict
attitude regarding collateral and only
loaned ON gilt edged securities. There
were no failures.
BOSTON, Dec. l9.-Contidence in
financial circles in this city was appar.
entity restored by the united efforts of
bankers and brokers only to be again
shaken by the failures IN New York.
The local stock market quickly fol.
lowed New York III the stock decline,
but tae sluinp did not bring with IL any
failures among local brokers. Copper
stocks underwent further contraction
The offer of the clearing house asso,
citation to assist any solvent bank in
temporary straits probably did much to
case matters hore and coupled with il
came tho rpDDrt M N aatip ia AZ ,ry shn,.