New-York tribune., 1901-05-10
DETAILS OF THE CRASH.
PANIC-STRICKEN OPERATORS MAKE
THE EXCHANGE A VERITA-
BILE BEDLAM.

The Stock Exchange was the scene yesterday
Of of the most disastrous panics ever re-
corded. Fortunes made in the recent rise were
swept away in an hour. Paper profits amount
Ing to millions Of dollars were cancelled. and
in their place enormous losses were created for
the account of commission house traders 1t is
simply impossible even TO estimate the losses
sustained by brokers and their customers but it
may be said without fear Of contradiction that
the actual cash losses reached total never be-
fore equalled In the history of Wall Street. The
greatest bull market boom in the history OF the
United States brought to an end by the
efforts of powerful financial giants to secure
the control OF the Northern Pacific Railroad
The fight for the control Of this property came
at time when the market was ripe for re-
action. but instead of a reaction an absolute
and unrestrained panic developed. in the course
of which prices declined from twenty to fifty
! POINTS. -wfTn- even greater setbacks in several
Issues
In the first hour OF trading the corner in
Northern Pacific carried the price Of that stock
to 81 GOO Subsequent sales were made at 700
and from that price down to 325. the last quota
ton for the day. At the top price sales were
made for cash only. the highest regular quota
ton being 700. After II o'clock no dealings
were made for commission house account. save
cash basis, ana III tHc SiedCSA AAuAiAN0A "a
small houses orders were refused for all stocks.
except for actual cash transactions. While
Northern Pacific was advancing, other stocks
were being thrown on the market without re-
gard for prices or for the actual value or the
securities concerned The general list went
down more points in an hour than IL had ad-
vanced in months. but at the low level the eX-
ecution of heavy buying orders caused rally
that carried the greater number Of issues from
ohOyra he
panic frenzy was allayed soon after noon. but in
the rest Of the day the market was feverish and
unsettled.
AGREEMENT WITH MORGAN & co.
Kuhn Loeb & Co. issued statement at noon.
saving that they had agreed with j. p Morgan
g 90 not 10 enforce deliveries Of Northern Pa
cihc stock in the day. Smaller firms followed
the example OF the houses named, and as a con-
sequence an easier feeling developed In all
quarters Of the market When the warning fac
tions in Northern Pacific announced that they
would not force deliveries. the Clearing House
came ont with a statement to the effect that all
transactions in Northern Pacific would be EEK
Clearing House until further notice. At the
same time il reported that the banks hao
combined to lend $20.O00OOO at market rates.
and this factor, together with those just named.
resulted in checking the furious selling move
ment In all issues.
On the Consolidated Exchange a number OF
failures were made. on the Stock Exchange.
however. no trouble was reported. although it
was known that a number of prominent houses
were merely saved from serious difficulties by
the timely assistance Of powerful banking insti-
tutions The fact that no stock market houses
went under and that none Of the banks were
affected was considered one Of the most striking
features Of the day. II was purely speculative
panic II was not money OF business panic
There was just much actual money in the
country after the panic as there was before the
decline began, and there just much pros
perity in the industrial activities of the nation
at the close of business there was before
the corner In Northern Pacific stock developed.
The country Is safe. but the stock market NAV
be sick" for some time to come.
Money rates advanced TO 90 per cent. At this
rate the banking syndicate made it's first loan.
and before the close of business $195O0OO0 had
been loaned at market rates from 90 down to
per cent The last loan made 8 per
cent. but after the close of business 20 per cent
morning helped by the wholesale calling OF
loans by the very banks that came to the
sistance OF the market in the afternoon.
At the opening OF the market condition OF
absolute chaos prevailed Every one apparently
wanted TO sell. and every seller evidently
willing to sell for any price that buyers were
willing to pay. People who were short OF
Northern Pacific sacrificed other securities In
order to raise funds to buy Northern Pacific.
and in many cases rare investment securities
We're thrown on the market for ridiculous prices
1t had been hoped before the opening OF busi-
ness that the warning factions In Northern Pa
cifc would reach an agreement by which the
shorts would be extricated from their dangerous
position but the first sales OF the stock dis
PEELED this illusion. The first transaction was
500 shares at 110. followed by 200 at 1i5. 800
at 1sO 200 at 10. and 800 ar 100. From 100
the price jumped by leaps and bounds to DDS.
$50 800. 400. $50 $50. 700 and 1000. The biz