The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-05-10

New York, May 9.-The threatening
condition of affairs which developed
in the stock market yesterday culmi-
mated today in one of the severest
twists ever experienced in Wall street.
The corner in Northern Pacific was
the impelling cause of the crisis, ow-
| ing to the threat contained in the
| ruinous terms forced upon shorts in
that stock that disastrous liquidation
would be forced at other points. Siren
| uous efforts were made by the most
powerful financial interests in the
country to avert the threatening trou-
BILE and almost unlimited supporting
orders were placed in the market for
| the opening in anticipation of the
heavy selling which was sure to come.
! Reassuring expressions were dissent
mated from the principal parties in in
| terest to the Northern Pacific contro-
versy, designed to dissuade alarmed
holders from precipitate selling Nof
their stocks, but all these precautions
| proved unavailing in the face or the
unmistakable index afforded in the
price of Northern Pacific that the cor
ner in that stock was intact and there
fore that the bitter controversy over
control of the property was still un-
settled. When Northern Pacific began
selling at 200 and 800 ad even as high
as 700 on regular transactions and at
1000 for cash, the appalling possible
ties of the forced covering of the large
shortage at those terms weakened the
whole market and prices crumbled
away with the utmost violence dur
| ing the second hour.
The volume of the blocks unloaded
and reckless disregard of the price
which they brought were without pre-
cedent in the memory of the Oldest
traders. Before any check had come
to the tremendous liquidation, Della.
ware & Hudson had lost SO points; !;
Manhattan, 80; Union Pacific, 49,;
Rock Island 351h; Atchison, 321A; ST.
Paul, 301a; Missouri Pacific, 80 and
the long list of other stocks from 5
to 80 points. The predominance OF
the Northern Pacific corner on the
| situation was demonstrated by quick
rally in the market when the an
nouncement was made that the con.
| tending interests in Northern Pacific
would not require delivery of stock
| today. Pretty broad intimations were
also thrown out that such delivery
would not be required SO long as the
present. conditions last. Exemption
of Northern Pacific from the usual
clearing house requirements OF de
| livery, still further allayed apprehen
| sion. The price of the stock fell back
to 800, both on cash and on regular
transactions, after these announce
ments and there was a scramble tc
cover on the part of professional
shorts.
There were large numbers OF bar
gain hunters also in the market, whose
combined effect of buying was reflect
ed in rallies in Delaware & Hudson
to 55; Manhattan, "a, Rock Island, 80;
Atchison, 30; and U. S. Steel, %, ac
tually carrying that stock 212 points
over yesterdays close. Missouri Pa
| cific, %; Louisville, %; Amalgamat
ed Copper %; St. Paul, 81 and large
number of other stocks from to &c
points. This rally was not fully held
The market became much quietel
during the latter part of the, day, but
| extreme feverishness continued. Even
the action of the bankers by agree
ment in lending $16,O00,0O0 on the ex
change at 6 per cent failed to relieve
the close from such very erratic move
ments and renewed bad breaks fol
4 lowed.
Extensive shrinkage in value OF Sc
i curities and corresponding decrease
in credits made money very stringent
and 60 per cent was paid at one time
by those seeking accommodation, but
the action Of the associated banks
forced the rate down to 6 per cent
The tone of the market at the close
and the fact that the controversy
which precipitated the trouble was still
unsettled left feeling of uneasiness
in the financial district.
i The selling of bonds to protect
i stock holders made that department
of the masket weak in sympathy with
stock.