The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1901-05-16
WALL STREET WILD
Battle Of Money Kings Creates
Tremendous Stock Harry.
FIGHT FOR NORTHERN PACIFIC
Fortunes of Many Uniueky Spectators
Were Swept Away In the Crash.
Sixty Per Cent Was Bid
for Money.

A New York special says: Bitter
stress developed in Wall street by the
second hour Of trading on the stock
exchange Thursday. The violence OF
the commotion had spent much Of its
force, at least for the time being. when
the chairman's gavel fell announcing
the close Of the days proceedings.
The casualties were great and the
field Of battle was strewn with the
wounded and maybe with the dying.
But Of actual fatalities none was re-.
corded Of importance during the day.
During the height Of the panic rumors
of insolvencies were handed about
more quickly than they could be re-
ported. But no confirmations could be
had of the intimations of financial
wreck. Those against whom the ru-
mors pointed refused even to show
any signs of distress and profesSed
themselves ready to meet all obiigars
tions. In more than one instance the
answer to these rumors was for rep.
resentative Of the house to go upon
the stock exchange and place loans to-
large amount, as indicating the
abundance Of resources at hand.
The banks have been so well pro-
tected by recent extensions OF the
margins exacted in the market value
Of collateral over the amount OF loans
placed that they had little to fear:
short of an absolute wiping out OF
market values. The shrinkage OF coll
lateral made it necessary for the
banks in many cases to exact addi-
tional collateral during the day and
this addd much to the distress for q
time. But in the late dealings thea
principal banks in the financial dis.
trict agreed to form pool and raise 3
fund to loan the money rate down TO.
6 per cent on the stock exchange. The
bid for money had been run up to 90
per cent and was threatening to keep
alive the panic. The dozen BANKS
quickly came to an agreement to raise
$16,000,00 with implied willingness:
to increase the sum II necessary.
There were heavy loans placed also;
by the individual banks, ranging In,
some cases to $4,000, 900 and $50, 900. ::
900. Through the early part OF the.
day bankers exacted the market rate:
for loans. But with the growing need.
to suppress the panic they offered the
rate down to 6 per cent.
The stock which caused the collapse
was the Northern Pacific corner, with
out dispute.
The Importance attached to the:
Northern Pacific episode was made
clear by the eagerness Of all classess
to learn all developments concerning
it and the immediate effect OF any an.
nouncement regarding it upon the:
stock market. The upward shoot TO:
81 900 a share was the effective cause.
Of the greatest generalization in the:
market. The announcement later 10:
the day Of the measures for the re-
lief of>the shortage and the relapse IN:
the price of the stock to 300 allayeds
the decentralization almost immedt-
ately.
The struggle Of the financial giants.
which broke the most remarkable
movement that American stocks ever
had. dates back but fortnight. u.
n. Hartman and his associates. so
they relate the story in the street. dis
covered that brokers representing 3.
p. Morgan & Co. were buying Union
Pacific. Hartman at once began In
creasing his own holdings, buying on
market that rapidly advanced, ana
when sure of control submitted prop.
osition for some basis of agreement a.
to the control Of the Burlington, just
acquired by the Great Northern ana
Northern Pacific. That offer was re-
jected.
On Monday last there began q
sational movement in Northern p
cific and the public got the first init.
nation of the battle for supremacy.
Street & Norton took all of the stock
they could get, seemingly without re-
gard to price. Much Of the stock 500
to them was for short account anu
could not be delivered. It develops
finally that there were three large fn-
terests in the property, two seeking its
management and the third a specula'
tive profit.
A statistical reviw Of the transac-
tions in the stock market THURSDAY
shows that at low water marx o.
prices forty-one principal
shrunk the tremendoqa
s6sS, ,4o7. This sh
ever, is largely Offset
of the market towaE
Next Meeting in Columbia.