The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1901-05-17

of the Shortages.
New York, May 11.-Bitter stress de-
veloped in Wall street before the Sec
ond hour of trading on the stock ex-
change yesterday. 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
closing of the days proceedings. The
casualties were great and the field Of
battle was strewn with the wounded
and may be with the dying. But Of
actual fatalities none was recorded Of
importance during the day. During the
height of the panic rumors of in
solvencies were handed about more
quickly than they could be reported.
But no combinations could be had of
the intimations of financial wreck.
Those against whom the rumors point
ed refused even to show any sign of dis
tress and professed themselves ready
to meet all obligations. In more than
one Instance the answer to these ru-
mors was for u representative of the
house to go on the stock exchange and
place leans to large amount. as indi-
eating the abundance of resources at
hand. But notwithstanding these and
similar devices for keeping up credit
and confidence the fact was too obvi.
Gus from the crash Of values on the
exchange that credits and borrowing
power We're shrinking at too prodigious
a rate not to leave the minds Of the
whole financial world in condition Of
Intense Strain.
The shrinkage Of collateral made it
Necessary for the banks in many cases
to exact additional collateral during the
day. and this added much to the dis.
tress for a time. But in the late late
dealings the principal banks in the
financial districts agreed to form pool
and raise a. fund to loan the money rate
down to per cent on the stock ex-
change. The bid for money had been
run up to 60 per cent and was threaten
ing to keep alive the panic. The dozen
banks quickly came to an agreement
to raise s16,000O00, which implied will
lingness to increase the sum if neces-
sary. There were very heavy loans
placed also by individual banks, rang
ing in some cases to $25,00o,O 900 and $780,
900, OOO
morning before proceedings had COM
menced on the stock exchange that a
panic could be averted only by the
strongest measures and with the great
est difficulty. The fact was apparent
that the corner in Northern Pacific was
still unbroken. The first steps to avert
the panic was devoted to circulating
reports that the conference between the
int ~,
cific. which continued in one form or
another throughout the night. had re-
suited in a compromise which would
free the shorts in the stock from their
compromised position. These efforts
Proved Utterly Ineffective
in the face of the first quotations of
Northern Pacific on the tape. The
price paid for the stock ran up quickly
to $500 per share and then to $500, to
$500 and even to $500 per share on regu-
lar transactions and $1,000 per share for
cash. The cash price paid meant that
unfortunate shorts who We're unable
to borrow the stock Wednesday night
for delivery yesterday had to pay what
ever cash price the engineers Of the
corner chose to ask for it. The figures
indicated in these opening transa ctions
meant ruin for very large outstand-
ing short interest in the stock The
perception of this fact was the principal
impelling cause in producing the de-
moralization in the stock market. AS
prices began to go down the disposition
to buy decreased and the determination
to sell seemed to grow in geometrical
ratio. Such a showing out of stocks as
occurred during the second hour Of
yesterdays stock market was never
seer before. The extent of the decline
during the half hour was as great in
some cases as has taken weeks to at
tain on the advance, although all OBJ
servers have agreed that the rate at
which prices have been going up has
exceeded any previous experience The
figure. alone suffice to indicate the
Proportions of the Drop.
In Delaware & Hudson the extreme
decline was So points; Manhattan.
SS7-S: Rock Island, 35 1-2; Union Pa
cific. 50; Atchison. "a 1-2; Atchison psd.,
% 1-2: st. Paul, 80 1-2; Missouri Pacific.
90: Southern Pacific. 20 ga; United
States Steel pfd., 261 -2, while range
of 5 to 80 points would cover the COL
lapse in nearly every active stock in the
exchange. 1t was a very notable fact
that throughout the most acute period
Of Yesterdays disturbance there was
nothing heard to indicate doubt of the
sound and prosperous conditions of in
dustry and business at large in the
country. The stock market collapse
wis attributed exclusively to over spec
ulation and an oyeraextensfon 81 credits
used IN holding stock which it was not
designed to keep, but to sell at high
err price. The shock which caused the
collapse was the Northern Pacific COR
ner, without dispute. The Importance
attached to the Northern Pacific cpl
sode was made clear by the eagerness
of all classes to learn all developments
concerning it and the Immediate effect
os any announcement regarding IL upon
the stock market The upward shoot to
LOCO share was the effective cause
Of the greatest decentralization In the
market The announcement later in
the day OF the measures for the 81 IN
Relief ~ the shortagesss IL b u
and the relapse in the price az the
stock to 500 aliayed the derf,ohralizat ton
almost immed iately. Announcements
by j. r. 7 Morgan g CO. and Kuhn, Loeb