The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-10


least as far as buying its securities is
concerned.
The break in these stocks yesterday
was a panic in itself. The common
stock, which on Tuesday sold for 53.
yesterday tumbled to %, thus cutting
the price in half and worse. The
shrinkage in the price of this one Sc
curity alone was considerably in excess
of 500, 900, 900. The preferred dropped
from 95A at the opening yesterday, and
from well above par few days ago, to
20. The recovery in both these securities
was good, but it had not been made
until many people had been obliged to
sell out near the bottom.
one of the chief features OF TIE day,
and one that contributed heavily to the
losses. and in some cases also to the
profit of customers, was the fact that
the tape" and "tickers' We're far be
hind the market When Washington
heard of the beginning of the panic the
worst of ii had been reached, and when
this city received the lowest prices there
had been already a sharp recovery. It
out far below where they expected to-
and others at much better than they
expected 1t also happened in some
cases that the brokers themselves did
not know of the worst prices until they
were passed, and thus did not have a
chance to sell out their customers even
when margins were exhausted.
oil
common were given when the break
began. and the price was around a.
One customer was selling out long stock
on which he thought he had small
loss. The other wished to go snort.
The orders were filled at % and % re-
spectively. The man selling the long
stock lost somewhat more than 20 points
in all, having bought around As. The
short seller did not know where his Or
der was filled until the price had recov-
cred to 40. He was then. already a
loser or it for II points.
The department clerks. men and
women, form large part of the specu-
lative public in this city. Losses by
these people were among the most i'm
portant of the smaller reverses. Hun
dreds of accounts were wiped out in the
break. Some of these represented paper
profits made during the recent boom
largely. but others were the accumu-
lated savings of years from small sal
aries. a number of high Government
officials were also caught in the crash.
One case was heard of Pension Office
clerk that had turned $50 into $500
during the past winter and spring. He
lost the entire amount and $500 in addi-
ton yesterday in ten minutes. A
woman clerk in the Treasury Depart
ment lost over s12,0 900 in Steel common
stock. bought last week above 30.
The stories of narrow escapes from
losses We're almost as interesting as the
more unpleasant ones. A high Govern
ment official bought Steel common stock
a few weeks ago, and had a handsome
profit on il when il went above 80.
When the break began on Wednesday
his broker was at first unable to reach
him, as he was at a board meeting in
the State, War, and Navy Department.
The broker called up over the telephone
that the business was urgent The
prominent official told the messenger to
tell the man at the telephone to wait.
1t was almost o'clock. The broker then
told his name and insisted on seeing his
man. He persuaded the customer to
sell with much difficulty. Yesterday.
after the break, there was an apology
made by the Government official TO the
broker for his apparent lack of cor
diality in answering the telephone call
Two spectators prominent in an
Street house and in business in this city
held between them 800 shares OF Ameri-
can Tobacco. Tney bought at an aver
age price of 124, and at one time had a
profit of $1,000 or more ON it, On
Wednesday,, in the first break, when
the price reached 122, they gave their
order to close their stock for 120 or bet
ter. IT was closed out exactly at 124.
Another man with a considerable block
of the stock refused to sell on Wednes
day, but dropped it yesterday near the
bottom.
One Of the chief winners by the break
was q prominent lawyer, who mas been
short of the market for some time. He
held a very large block of Brooklyn
Rapid Transit short and other stocks
in lesser amounts. He did not cover his
stocks on the break yesterday. however.
as he looks for a further decline today
or later.
There was everywhere the utmost
difficulty in filling orders of any kind.
Several of the local brokers absolutely
refused to buy any stocks whatever,
even for cash, and confined their bust
ness 10 calling for margins and selling
out stocks for their customers. Where
stocks were bought the execution was
often OF the most disappointing kind,
either far below or far above the prices
expected. This feature of the panic
prevented many OF the bargain hunters
from profiting by the break Orders TO
buy on the break were usually put in at
a certain price, and before they could
be executed the advance had begun.
that of the close was accomplished in
two or three minutes in many cases. II
was as violent as the break, though 1t
did not extend as far. Many important
business men, however, made large
purchases on which they already had
realized large profits at the close. One
of the NEST conservative houses in +
Street reported last night that it had
Il. 4. L. IA ng ,...k,