The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-05-09
4 PANIC IN WALL STREET
Disastrous Results of the Northern
Pacific Corner.

NEW YORK Nav 9-Panic, absolute
and unrestricted, has held possession
of the Stock Exchange all this morn
ing, Northern Pacific was put up to
1 600 on the short in the second hour
Meanwhile, other stocks were thrown
overheard regardless OF price. The
general list then showed declines Of
from 10 to IS points in nearly all active
stocks
Kuhn. Loeb & Co. issued a statement
just before noon saying that they had
agreed with J. P. Morgan & Co not 70
enforce any deliveries Of Northern Pa
ciffc today. This was done to aIIay the
panic.
John Schiff, Of Kuhn. Lceb & Co,
said at I2.30 o'clock An understand
ing has been made between this house
and that of J. P Morgan < Co, where
by no deliveries of Northern Pacific
stock viii be forced. It was first agreed
not to call for any. deliveries today and
then it was agreed not to set any time
whatever for the delivery Of Northern
Pacific stock so as to give plenty of
time for settlement"
This statement was confirmed at J.
P. Morgan & Co 5. where, as no definite
figure for the settlement with Northern
Pacific shorts was agreed upon, it
was stated by one Of the firms that IT
was not expected that any such prices
as we're touched today by that stock
would be insisted upon.
There was apprehension that large
sums of money might be called from
New York by the country bankers
During the morning there was no evi-
deuce to support this theory. On the
otrer hand, all the money available is
being forwarded to New York largely
by bargain hunters all over the coun-
try who wish to secure cheap stocks.
It was conceded, however, that there
is some probability that the banks Of
this city which have been lending mon
ey for the country banks, may call in
their loans, declining the responsibility
OF handling them
During the second hour, for minutes
at a time, there was practically no mar
ket for stock, which was offered in
foods Every part Of the list suffered
and prices declined 20 TO 20 per cent.
An exceptional break of nearly so per
cent took place in Delaware and Hud-
son, followed by a quick recovery Of 80
per cent.
Arbirage houses, whose shortage in
the stock had been legitimate, IN that
they trade against shipments of the
stock between here and Europe, had
been protected by loans Of such stock
as they needed, the large interests be-
Heved to be in control having announc-
ed that they would lock out for all such
persons.
The brunt Of the attack thus fell on
the big spectators, most Of them the
Western contingent, which had been
caught between the upper and the meth
er zaiIstone-BIr Hartman and his
friends on one side, Mr.. Hill and his
friends on the other-with James r.
Keene throwing in grit to multiply
their agonies. Everybody expected that
this or that specuIator must give in.
Fortunes made out of the steel merg-
ers were momentariIy being decimat ted
Men who month, even a week, ago
seemed lucky beyond possibility OF
failure, and who complained that they
would like 10 lose a million" were do
ing this thing with every yard of tape
that was reeled .reIentIessIy of
Meanwhile, prices in other shares
vaciiIated, weakened, and crumbled
That the conditions were not worse
was due to the fact that many large
commission houses sat down" on thei
business trades until more settled con
ditions prevailed Nobody doubted that
these would come when panic fear:
subsIded, but there were many peopI,
who could not afford to wait, and these
threw stock overheard practically re
gardless Of prices
The first check given to demoraliza-
tion was the announcement that The
banking houses representing conflicting
interests in Northern Pacific had
agreed to make no demand for delivery
Of Northern Pe-:sssz, common sold tc
chem This instantly relieved the cor
ner and prices rebounded 10 to % Del
cent. There was heavy selling Of bonds
even Of the choicest class in order Il
use the money for purchases of stocks
when they were being offered at bar
gain prices
The break IN the market was gen
eraI; nothing escaped Al houses were
refusing new orders IN some offices
men with tears in their eyes were Il
be seen. and that thousands were ruin.
ed goes without saying, for the fever
Of speculation has been rioting since
January / Many houses declined bust.
ness altogether
Prices fell irrespective Of value, ans
Chicago was the heaviest seller. Some
Of the recently made Chicago mIi3or-
aires viii only have remnants Of theil
fortunes left after the wreckage ].
cleared up. The liquidation was gen
eral and The excitement was so intense
that It could not be traced with an,
degree Of accuracy.
~ London trading was impossible to es
innate, but wherever. possible arbitrag,
houses sold It was reported that i'm
portant money interests bought freely
on the worst breaks. The tape was ;
half hour behind time and. prices wer,
far and away from the ticker quota
tons
Early in the morning, with Northern
Pacific climbing to its dizzy height, tht
ticker printed the following: Clearing
house notice: All transactions il North
ern Pacific. common, viii be ex-cIear
ing house until further notice"