Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-05-10
UPS AND DOWNS.
Unprecedented Scenes on New
York Stock Exchange.
Northern Pacific Touches $1,000 Cash
collapse in Other Stocks.
Thousands Bitten. Though Large Houses ard
Banks Stand the Strain.


today. The violence of the commOtiOn
had spent much of it's force, at least
for the time being, when the chair
mans gavel fell announcing the close
OF the days proceedings. The casual
ties were many but no actual fatalities
Of importance We're recorded during the
day. During the height of the panic
there Were rumOTs Of many inSolven-
cics but TO combinations could be had.
Those to whom the rumors pointed
protested themselves ready to meet all
obligations. In more than one in
stance the answer was to go upon the
Stock Exchange and place loans to a
large amount. as indicating the album
dance OF resources at hand.
But. Notwithstanding these and
similar devices for keeping up credit
and confidence. the fact was too obvi-
Gus that credits and borrowing power
Were shrinking at q prodigious rate.
But the Indications at the close of the
day Were strong that the principal
damage had been wrought upon the
speculative class or upon holders of
securities on margins. The banks
have been so well protected that they
had little to fear short of an absolute
Wip!ng out at market values. The
sl.rinkace' Of collateral made it noes
sary for the banks in many cases to
"xaCt additional collateral during the
day. and this added much to the dis
treSs fer a time.
In the late dealings the principal
banks in the financial district agreed to
pool and raise a fund bringing the loan
rate down to per cent on the Stock
Exchange. The bid money had been
run up to 80 per cent. The dozen
banks quickly came to an agreement
to raise sl6000. 900 with implied willing
ness to increase the sum if necessary.
There We're very heavy loans placed
also by individual banks. ranging in
some cases to S25 .00o. 600 and $50, 900 600
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 G per cent.
The excitement was apparent I'll
through the financial district during
the period Of panic. but there We're few
sensational scenes. Now and then a
white faced woman would peer from
? cab outside brokers' Office and
would be driven off in a fainting condi-
ton. after receiving a message from
the interior. Wherever any near APP
proach could be made to 4 ticker or to
n board on which quotations We're
posted there We're great thrOngs of ex-
cited spectators scrambling for 4 view
of the quotations.
In the brokers' offices sat many
men who We're reduced 10 absolute ruin
as result of the unparalleled rise of
prices. With the true gambling spirit
they have replaced all their winnings
in new ventures on each successful
turn. Today's drops. therefore, wiped
most of them out.
The glittering attraction of the re-
cont market mas brought out a con-
stanty increasing assortment of in
experienced speculatOrs-men and wo-
men who have brought their savings
In the hope of making one successful
stroke and then retire. The demon
STATIONS from this class, which in
cludes many women spectators fur
nished the hystercal scenes and sensa-
tons of the day.
There was 4 strong feeling this
morning before proceedings had com
menced on the Stock Exchange that
panic could be averted only with the
greatest difficulty. The fact was ap-
parent that the corner in Northern
Pacific was still unbroken. The first
efforts We're devoted to circulating re-
ports that the conferences between the
contending interests in Northern Pa
ci:ic had resulted in compromise
which would free the shorts in the
stock from their compromised posi-
ton. These efforts proved utterly in
effective in face of the first quotations
for Northern Pacific on the tape.
The price paid for the stock ran up
quickly to 200 per share and then to
800. to 800 and even to 200 per share
on regular transactions and 1000 per
share for cash. The cash price paid
meant that unfortunate shorts. who
We're unable to borrow the stock. last
night. for delivery, today, had to pay
whatever cash price the engineers of
the corner chose to ask for 1t.
The concerted efforts to support the
market by buying all stocks which
might be offered undertaken. according
to TIE current belief in Wall street by
some of the most powerful capitalists
in the country was swept away as in
q whirlpool. under deluge of Offer
ings. AS prices began to go down the
to buy decreased and the
to sell seemed to grow.
Such q skoveling out of stocks as ac-
Cured during the second hour of to-
days stock market was never seen be-
fore.
In Delaware e. Hudson the extreme
decline was 50 points: Manhattan. 3S1s:
Rock Island. 35,E; Union Pacific. IS;
Atchson. 34ih: Atchison pfd., 2S1. st.
Paul. 3Oih: Missouri Pacific, 50; South
ern Pacific. 29A: United States Steel.
pfd.. 261h, while range OF to so
points would cover the collapse in
nearly every active stock on the Ex-
change 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 last night. The stock sold at $50,
with 81. last night.
CONTINUED on page 2.) !