The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-05-10
A DEmoRALIzED MARKET.
War Between the Great Financial Interests
Drives the Spectators Frantic.
(By the Associated Press. J

New York May S.-The stock market
was utterly demoralzed this morning
by the developments in Northern Pa
cific. What were only sinister rumors
yesterday, had taken form in positive
assertion that the Hartman interests
in retaliation for the recent attempt
to secure control of Union Pacific had
turned upon the Morgan-lIill interests
and had wrested from them the control
of Northern Pacific. The competitive
buying which resulted caused virtual
corner in the stock to the discontinue
and panic of a very large short Interest
The collateral consequence OF the open
war thus disclosed between the most
powerful financial interests in the
country caused acute alarm among the
large interests long of the market on
the supposition that the great financial
interests Of the country were working
in accord to secure harmonious COM
munity of interests throughout the
entire world. The Hartman interests
supposedly backed by the Goulds and
Standard Oil interests in bitter warfare
with the Vanderbilt Morgan Hill inter-
ests offered alarming suggestions to the
heated imagination of spectators.
While shorts We're bidding any prices
for Northern Pacific, therefore, specu-
lators were unloading other stocks all
through the list. BY some means Nor
thern Pacific had been forced 10&
points under last nights close in the
London market this morning. The
opening sale here was of 1000 shares,
at 1876, at a rise of 1112 over last nights
close here, and of 22 Ia over the morn
ing's London price. On subsequent
purchases of blocks not exceeding 1000
shares. the price jumped five points at
a time to $50 an dthen fell back to 1856.
One interval of points on a sale of
500 shares was recorded on the down
grade. The price fluctuated violently
afterwards below 155 and 145 The pre-
ferred stock broke nine points with the
rest of the market Canadian Pacific
broke AZ and then rallied IA. Open
ing losses in other stocks ran from |
to IA Pacific rose a fraction. broke
3 and then came back 3, measuring the
hopes of advantage to the stock from
the Northern Pacific coup Some of the
most urgent buying of Northern Pa
cific came from arbitrage, showing that
foreigners were largely represented III
the short interest The disorder on the
Stock Exchange was extreme during
the first hour, but strong rallies in the
general market and the relapse in
Northern Pacific treasured holders AMI
the market became quieter.
The market showed an undercurrent Of
nervousness, but presented much stron-
ger front ON small dealings. At noon the
market was quieter than for months and
there was a general disposition to trade
cautiously. Northern Pacific pursued a |
very erratic course after midday. The |
price got up to 10 again. But fears that |
absorption of Burlington might be jeo-
pardized by developments in Northern Pa |
ciic caused Burlington to break. The |
whole market then broke with violence |
A brief rally met with heavy selling |
again and prices slumped at such rate |
during the last hour that panic conditions |
developed. Holdings were thrown over
without regard to price, and changes of |
half point between sales were the rule l
in the active stocks. There were occa-
sional feverish pauses in the downward |
course due to desperate attempts to check |
liquidation, but their duration was only |
momentary. United States Steel stocks |
suddenly collapsed, the common falling |
Ga and the preferred IL by rapid stages.
As the declines reached greater proper
lions ana wiped out the more strongly |
margined accounts the weight of the Of
ferings increased, and the confusion and |
nervousness seemed to deprive the opera
tors of their power of judgment.
When United States Steel preferred had |
reached decline Of II points apparently
unlimited buying orders appeared in the
stock, which rallied it eight points There
were other rallies in sympathy In the |
alpc iyU he M rlrQ
wild ard erratic character, sudden re- |
bounds in some points being Offset by |
renewed declines on others. The trading |
was so active in the last hour of business
that it was impossible for the ticker to |
keep up with quotations and it was not |
until q minutes after the close of the |
days session that all of the transactions |
had been recorded on the tape, This is |
unprecedented, the tickers usually being |
within minute Of the market.