Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1901-05-14
A PANIC ON CHANGE.
In New York Friday Northern Pa
ciflc Stock Went to $1,000.
For Time go Per Cent. Was Paid for
Money But the Feverish ExcItemsRt
Was Soon ReIIeved-RusIness
at Large Not ARected

New York, May 1O.-The trading in
Northern Pacific became so wild and
excited toward II o'clock Thursday
that prices changed rapidly rs and so
points at time. A sale at $50 was
recorded and almost Immediately an
other came out on the tape at 700.
At 11:15 Northern Pacific sold at
81 900 a share for cash.
At 11:4O the statement was made
that j. P. Morgan & Co. and Kohn,
Loeb & Co. had just agreed not to
enforce deliveries on Northern Pacific
stock. With this announcement there
came rally in prices throughout the
general list, Atchison common selling
up to 61h, the preferred at 80, Man
haitian to 100 and others in smaller
proportions.
At one o'clock the failures of w. II.
Brewer, of 60 Broadway and J. T. Lee,
of 81 Broadway, were announced on
the consolidated exchange. Rumors
were circulated affecting the credit
of several stock exchange houses, but
they were soon officially denied.
Shortly after one o'clock A. A. Hous-
man & Co. loaned $1,00O,000 at six
per cent, and it was said that other
strong firms were lending their avail
able funds in the efforts to check
the declines in prices. The banks,
on the other hand, became more con-
sentative, and decided y loan only to
their regular customers. Some bor-
rowers were forced to pay from 10 to
60 per cent. for their money.
After money had gone to so per
cent, it was reported that number
of bank presidents went into confer
ence with the object of making ar
engagements to lend $16,OO0,OO0 on the
stock exchange at low rates. ]. P.
Morgan G. Co. were lenders of large
sums to-day at six per cent. At two
O'Clock, semi-officiaI announcement
was made that the Gallatin national
bank would lend $16,OOO,o00 at six per
cent, acting for the associated banks
of the city.
In the different brokers' offices many
men sat who were reduced to
| absolute ruin as result of Is min
utes' proceedings on the stock ex-
change. Some of these have been
made opulent within a few weeks
past as a result of the unparalleled
rise in prices. With the true gam
bling spirit they have replaced all
their winnings in new ventures on
each successful turn. Yesterdays
drop, therefore, wiped them all out.
It was very notable fact that
throughout the most acute period OF
yesterdays disturbances there was
nothing heard to indicate doubt OF
the sound and prosperous conditions
of industry and business at large in
the country. The stock market col
lapse was attributed exclusively to
transportation and an over-exten-
sion of credits used in holding stock
which it was not designed to keep,
but to sell at higher price. The
shock which caused the collapse was
! the Northern Pacific corner without
dispute.
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 effect of any
announcement regarding it upon the
stock market. The upward shoot +e
81 900 a share was the effective cause
of the greatest Generalization in
the market. The announcement later
in the day of the measures for the
relief of the shortages and the re-
lapse in the price of the stock to 5000
allayed the decentralization almost
| imm ediately.