The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1901-05-14

IN the stock from their compromise
position. These efforts proved utterly
ineffective in face of the first quotation.
for Northern Pacific on the tape. This
price paid for the stock ran up quickly
to 500 per share and then to $500. TO $50
and even to 500 per share on regular
transactions, and $1,000 per share fol
cash. The cash paid meant hat un-
fortunate shorts who were unable tC
borrow the stock last night for deliv-
cry today had TO pay whatever cash
price the engineers of the corner chose
to ask for it.
The figures indicated in these opening
transactions meant ruin for q very
large outstanding shor interest in the
stock. The perception of this fact was
the principal impelling cause in produc-
ing the Generalization in the stock
market. The concerted effort to sup
port the market by buying all stocks
which might be offered, which is al
ways the most effective manner of dis
suading persons from selling, n
which was undertaken, according TO
the current belief in Wall street by
some of h most powerful capitalists
in the country, was swept away like q
whirlpool under the deluge of offerings
which came upon h market.
as prices began TO go down the dis
position to buy decreased and the de-
termination to sell seemed to grow in
geometrical ratio, Is a falling gains
in velocity the farther il falls. Sue a
shoveling out of stocks as occurred dur
ing the second III of today's stock
market was never seen before. After
q sale had been made at a fixed price,
a broker would throw in an additional
block at anywhere from 5 to 10 points
lower, without stopping to demand any
Intermediate price for his Offering.
The extent of the decline during the
half hour was as great in some cases
as has taken weeks to attain on the
advance, although all observers have
agreed that the rate at which prices
have been going up has exceeded any
previous experience.
The figures alone suffice to indicate
the proportions of the drop. In Della
ware and Hudson the extreme decline
vas SO points, Manhattan 1875, Rock
Island 3512, Union Pacific SO, Atchison
341%- AtchiSOn preferred 2812, st. Paul
301a, Missouri Pacific 80, Southern Pa
cific 29A, United States Steel preferred
261a. while a range of 5 to 80 points
would cover the collapse in nearly
every active stock in the exchange.
In the outside market the stress of
the demand for funds was shown by
the perpendicular drop in the price of
Standard Oil of III points over night.
The stock solo at $50 compared with
81 last night.
The same urgent need was reflected
in the bono market where all grades
of bonds were offered on a declining
scale. The sacrifices there were natur-
ally much less than in the IStock de-
partment Of the market.
After the turn in the market came,
which it did about loon, it was notice.
able that the selling of bonds still con-
tinued and this was explained as being
do 20 ~ --frh 70 a,1r IN ~ n brIr
stocks at the attractive level of prices
to which the market a fallen. In
fact, the bargain hunter was on hand
and alert, and even in such a scene or
disaster is that presented there are
those who reap h benefit.
The drop in prices carried stocks of
many substantial properties down to a
level at which the current rate of div
idends paid upon them and we'll asSur-
ed make them attractive Investments.
1t was a very notable fact that
throughout the most acute period of
tOday'S disturbance there was nothing
heard to indicate the doubt of the
sound and prosperous conditions of in
dustry and business at large in the
country. The stock market collapse
was attributed exclusively to over
speculation and an over extension of
credits used in holding stocks which il
was not designed to keep, but to sell
at a higher price.
The shock which caused the collapse
was the Northern Pacific corner, with
out dispute. The harm which might
result from the Northern Pacific cpl
sode was by no means so great in any
ones hands to justify the extent of the
collapse in prices; but the delicate sit
uation of the market due to the over
extension of speculation made it vul-
nerable to this shock. The decline once
in force gained cumulative strength.
Spectators margins were wiped out
and brokers had to sell the securities
placed with them as collateral to save
themselves from loss, thus adding to
the weight of the selling. With the
credits reduced further sales of stocks
had to be made and so it came from
every quarter.
The Importance attached to the
Northern Pacific episode was made
clear by the eagerness of all classes to
Learn all developments concerning it,
and the immediate effort of any an
nouncement regarding it upon the stock
market. The upward shoot to 1000 a
share was the effective cause of the
greatest Decentralization in the market.
The announcement later in the day of
the measures for the relief of the
shortages and the relapse in the price
of the stock to 300 allayed the democrat
iZation almost Immediately.
Announcements by j. P. Morgan &
Co., and Kuhn. Loeb & Co., who re-
spectively represent the two contesting
parties in Northern Pacific, that they
would not require deliveries of the
stock today, meant a respite Of one
day at least from ruin for the shorts
in the stock. Later in the day Street
& Norton announced that they also
would not require deliveries of the
stock. This firm has been credited with
acting for James R. Keene, and bought
200, 900 shares of Northern Pacific on
Monday last, loaning 150, 600 shares that
night and calling in the greater part
of it the next day, thus disclosing the
corner in the took.
The theory that Mr.. Keene'S cam
paign had been directed towards a
squeeze of the shorts was somewhat
shaken by this leniency towards his
victims. 1t was significant also that,
although the parties to the contest for
control showed their willingness to re-
lieve shorts by RENTING h require
ment to deliver stock, they failed to
come to any mutual agreement to lend