The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-05-10

on each successful turn. Today's drop,
therefore viii put them out. In many
cases one could see the gamblers foriitude
with which the crisis of the market was
approached. but the gIitterfng attraction
OF this market has brought into 1t con
sfanty increasing accession OF inexperl-
enced spectators men aud women, who
have brought dong standing boards from
secret places and from savings bank de-
+ posts. with the determination to make
one successful stroke and then retire with
the profits The demonstrations from this
class, which includes many women specuia-
tors. furnished the hysterica scenes and
sensations Of the day.
All classes Of spectators In the stock ex-
change were under tremendous pressure
throughout the day. The impression pro
dnced by contact with those was due 10
their GOODNESS and nerve under the most
irving and exciting circumstances. Brokers,
messenger boys. telephone boys, clerks and
fbc ike have learned during the last Few
weeks to waste little time In dcmonstra.
lions They do things In the quickest aud
shortest manner and made things 10
smoothly today Mt a period when lack OF
GOODNESS might have meant disaster to many
persons.
Northern Pacific Was the Feature.
There was a strong feeling this morning
before proceedings had commenced on the
stock exchange that q panic could be avert
ed only by the strongest measures and
with the greatest difficulty. The fact was
apparent that the corner In Northern IA
cihc was still unbroken. The excited 'id-
ding last night to secure the stock for &c.
livery today made that very apparent. che
first steps to avert the panic were devoted
to circulating reports that the conferences
between the coutending interests In North.
ern Pacific, which continued throughout
the night, had resulted In a compromise
which would free the shorts in the stock
from their compromised position. These
efforts proved utterly ineffective in face OF
the hrst quotations FOR Northern Pacific. |
The price paid for that stock ran up quick
ly TO 5000 per share and then to $500, TO
$500 and even to 500 per share on regular
transactions and $1,000 per share for cash,
The cash price meant that unfortunate
shorts. who were unable to borrow the |
stock last night for delivery today, had TO
pay whatever cash price the engineers of
the corner chose to nsk for g..
The figures indicated in these opening
transactions meant ruln for q very large
outstanding short interest In the stock.
This fact was the principal cause IN pro
duelng the Generalization In tie market.
The concerted effort 10 support the market
by buying all stocks which might be Of
tered, which Is always the most effective
manner Of dissuading persons from selling |
aud which was undertaken. according to !
the current belief In Wall street by some |
OF the most powerful capitalists in the |
country, was swept away in the dcluge OF
offerings which came upon the market.
Everybody Wanted to Sell.
As prices began to go down the dispos- |
tlon TO buy decreased and the determlnat on
10 seq seemed to grow. Such a shoyeIlng
helr Of lod3y's stock market was never
seen After sale had been made at
ii2,ISp Price broker would throw In an al
u.llvnal block ~ anywhere from = tn 10
points lower without stopping 10 demand
AIRY in!eLmedlatr price Tor bis offering
hgnr was as great in some casrS as has
taken weeks 10 attain on The adyapce nj,
though observers have agrecd that the rare
NJ which prices have been going IN Inns
exceeded any previous experience
IN Delaware and Hudson the cAtreric DO
9 Tl,l was - pYolots; Manhattan 3sN Rock
Island y5ls Union Pacific 49, Atchison
altg; Atchisou, preferred, 2SlG: ST. Paul |
3li3: Missouri Pacific -; Southern Pacific |
2'iN; United States Steel. preferred 81. |
while q range Of 10 20 points wnuld covGr !
the COLLAPSE u nearly every nctlye stock |
on the exchange.
Break in Standard OIL.
In the outside market. the stress Of the |
demand for funds was shown by the per, |
pendlcular drop IN the price of Standard |
oil Of III points over night. The stock |
sold at $50, compared with $40 last night.
me same urgent need was reelected In |
the bond market, where all grades of bonds |
were offered on declining scale The sac
riices there were much less than In the |
stock district OF the market After the |
turn In the market came, which did nbou, |
n1on. some noticeable selling of bonds stiil |
continued and IT was ascribcd to n wish 10 |
secure funds to buy stocks nj the nttroC |
i've level OF prices to which the market |
had fallen. la fact the bargain hunter |
was on hand and alert aud even In such a |
are those who reap the benefit Tho drop |
In prices carried stocks Of many substantial |
properties down to q level at which the |
rate Of dividends paid upon them and well |
assured make them attractive investments. |
IL was Il very noticeable fact that !
Throughout the most acute period OF the
day S disturbances there was nothing heard |
TO Indicate doubt of the sound and pros |
porous condition of industry and business |
Mt large.
The stock market collapse was due TO |
MISREPRESENTATION and Oycr-extcnslou ot |
credits used In holding stock which II was
not designed to keep, but to Sell at a |
higher price.
Northern Pacific Fight Caused II.
The stock which caused the collapse was
the Northern Pacific corner. without dis.
pute. The. harm which might result from
the Northern Pacific episode was by no
means so grea, in anyone's MUD as to
Justify the extent Of the collapse In prices.
But the delicate situation OF the market,
due to the oycr-cxtension OF speculation,
made 1t vulnerable to this stock, The dc
cline once In force gained cumulatiye
strength. Spectators margins were wiped
out and brokers had to sell the securities
placed with hem as collateral to save
themselves from loss thus adding to the L
weight OF the selling. The shrlnkage in
The market value OF securities placed with
bankers as collateral made It necessary
that they should demand Increased coi |
lateral or call the loans with which specu
iators were holding stocks With their
credits thus reduced, further sales had 10
be made and SO II eamo from every quar-
tar 80 AN''N |