The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-05-09
A PANIC IN STOCKS
DAY OF EXCITEMENT ON NEW
YORK STOCK EXCHANGE.
BIG INTERESTS AT WAR.
A FIGHT TO CONTROL NORTHERN
PACIFIC RAILROAD.

Bitter Fight Between the Harri-
man Interests, Backed by the
GouIds and the Standard Oil and
the VanderbiIt-Hill-Mo Inter-
estS-Re Fluctuations in
Prices of stock, Especially North
ern Pacific, Kept the Market Wild.
United States Steel Stocks Col
Iapsed and Many Margins Were
Wiped Out.
New York, May S-The stock market
was utterly demoralized this morning by
the development in Northern Pacific
What were only sinister rumors yesterday
had taken form in positive assertions that
the Hartman interests, in retaliation for
the recent attempts to secure control of
Union Pacific had turned upon the Nor
gan-Hm interests and had wrested from
them the control of the Northern Pacific.
The competitive buying which resulted
caused a virtual corner in the stock to the
disco n.fiture and panic of a very large
short interest.
The collateral consequences of the
open war thus disclosed between the most
powerful financial interests in the coun-
try caused acute alarm among the large
interests long of the market on the sup
position that the great financial interests
of the country were working in accord TO
secure a harmonious community of inter
ests throughout the entire world. The
Hartman interests, supposedly backed
by the Goulds and STANDARD Oil interests
in bitter warfare with the Vanderbilt
Morgan-Hil interests offered alarming
suggestions to the heated imagination of
spectators. While shorts We're Bidding
any prices for Northern Pacific. there
fore, spectators were unloading other
stocks all through the list.
By some means Northern Pacific had
been forced 1OA points under last nights
close-in the London market this morning.
The opening sale here was of 1000 shares,
at 155, rise of liz over last nights close
of 22A over the mornings London price.
On subsequent purchases of blocks not
exceeding 1900 shares, the price jumped
points al a time to 1S0, and then fell
back to 155. One interval of points on
a sale of 500 shares was recorded on the
down grade.
Violent Fluctuations.
The price fluctuated violently after
wards below 1856 and 145. The preferred
stock broke points with the rest of the
market Canadian Pacific broke Az, and
then rallied 6A. Opening losses in other
stocks ran from 1 to 3A. Union Pacific
rose a fraction, broke and then came
back }, measuring the hopes of advantage
to the stock from the Northern Pacific
coupon. Some of the most ur-
gent. buying of Northern Pa
cifc came from arbitrage houses.
showing that foreigners were largely
represented in the short interest. The dis
order on the stock exchange was extreme
during the first hour, but strong rallies
in the general market and the relapse in
Northern Pacific reassured holders and
the market became queter
The market, showed an under current
of nervousness, but presented a much
stronger front on small dealings. At noon
the market was quieter than for months
and there was a general disposition to
trade cautiously. Northern Pacific pur-
sued a very erratic course after midday.
The price got up to 10 again But fears
that absorption of Burlington might be
jeopardized by developments in Northern
Pacific caused Burlington to break The
whole market then broke with violence.
Panic Conditions Prevailed.
A brief rally met with heavy selling
again and prices slumped az such a rate
during the last hour that panic condi-
tions prevailed. Holdings were thrown
over without regard to price. and changes
of y point between sales were the rule
in active stocks. There were occasional
feverish pauses in the downward course
due to desperate attempts 40 check the
liquidation, but their duration was only
momentary. United States Steel stocks
suddenly collapsed, the common falling
So and the preferred II. by rapid stages.
As the decline reached greater proper
tions and wiped out the more strongly
margined accounts the weight of the
offerings increased. and the con-
fusion and nervousness seemed
to deprive the operators of their power
of judgment When United States Steel
preferred had reached a decline of Il
points apparently unlimited buying or
ders appeared in the stock. which rallied
il 8 points There were other rallies in
sympathy. in the closing dealings the
market continued its wild end erratic
character sudden rebounds in some points
being Offset by renewed declines on 9TH
ers.
The Ticker Got Left.
The trading was so active in the last
hour Of business that it was impossible
for the ticker to keep up with quota
ttions, and it. was not until twentv-one
minutes after the close Of the days ses-
sion that all OF the transactions had been
recorded on the tape. This is unprece-
dented. the tickers usually being within
minute Of the market.
THE UNION PACIFIC MIDDLE.