Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-05-10

notified that they can close their con-
tracts at $50 per share
The Tribune, tomorrow. Will say:
Late last Thursday evening. 1t WAS
authoritatively stated that loans made,
yesterday CThursday). by the associat-
ed banks and J. p. Morgan & co.
amounting in the aggregate 20 nearly
so, 600 900, will not he called. today
(Friday). and that the rate of interest
will be marked down 10 materially be-
low yesterdays tThursday) ruling
rate.
New York. May 9.-Thc threatening
condition of affairs which developed in
the stock market. yesterday. culminat-
Cd. today. in one of the severest short
collapscs that have ever been known
in Wall street. The corner in Northern
Pacific was the impelling cause of the
crisis owing to the threat contained
III the ruinoUs terms forced upon the
shorts in that stock that disastrous
liquidation would be forced At other
points. Strenuous efforts We're made by
the most powerful financial interests
in the country to avert the threatened
troubl" ana almost unlimited support
ing orders We're placed in the market
for the opening in anticipation Of the
heavy selling which was to come.
Reasoning expressions We're dissent
mated from the principal parties inter
cs:ed in the Northern Pacific contro-
versy desiring to dissu2de alarmed
holders from prccipitated selling of
their stocks. Eut these precautions
proved Unavailing in the face Of the
unmistallahle index afforded by the
p.ice of the Northern Pacific that the
corner in that stock was intact and
therefore that the bitter controversy
over the control Of the property was
still unsettled.
When Northern Pacific began selling
a 2c0 and 500 and 800, and even as high
as 200 on regular transa ctions. and at
1000 for cash. the appalling possibilitic:.
of the forced covering of the largest
shortage as those terms weakened the
whole market and prices crumhlcd
away with the utmost violence during
the second hour.
The volume of the blocks unioaded
and the reckless disregard Of the price
which they brought is without prece-
dent in the memory of the oldest
trader.
Before any check had come to the
tremendous liquidation Delaware &
Hudson had lost 80 points: Manhattan.
50; Union Pacific, IS: Rock Island. 25i::
Atohison. 32l.: ST. Paul. 3Oi.: Missouri
Pacific. 20: ana a long list of other
stocks from ; to 80 points.
The predominanCe of the Northern
Pacific corner over the situation was
demonstrated by the quick rally in the
market when the announcement was
made that the contending interests in
Northern Pacific would not require de
livcries Of stock. today. Pretty broad
inl'matiouS were also thrown out that
such delivery would not be required
so long as present conditions last. The
exemption of Northern Pacific from
the usual clearing house requirements
of delivery still further allaycd appre-
nensiOn. The quotations of the stock
fell back to 300. both for cash and on
regular transactions after these an
nouncementS, and there was Il scram-
bic to cover on the part of professional
shorts. There We're large numbers of
, bargain hunters also in the market.
The combined effect of this buying
was reflected in rallies extending in
Delaware & Hudson to So: Manhattan.
to "a; Rock Island. SO: Atchison, 90;
United States Steel, pfd., %, actually
carrying tie stock 21a points over yes
terday's close: Missouri Pacific, %:
Louisville. %: AmalGamatcd Copper.
%; st. Paul. 81; and a large number of
other stocks from 5 to 20 points. This
rally was not fully held.
! The marl,ct became much uUietcr
during the latter part of the day but
the extreme feverish nervousness con-
tinucd. Even tie action of the bankers
hy agreement in lending $4,000. geo on
TIC Exchange 1T G per cent. failed to
rate movements and renewed bad
breaks in prices. The extension of
shlinkage in the value of securities
and the corresponding decrease in
credits made money very stringent
and 60 per cent was bid at one time
for those seeking accommodation. The
action Of the associated banks forced
the rate down to 6 per cent.
The fcvcrish tone of the market at
tie close and the fact that the contro-
yc:sy with the precipitated trouble is
still unsettled, left the Feeling of I'M
casiness and dread retaining large
force in the financial district.
! Selling of bonds to protect stockhold-
ings made that department of the mar
fet weak in sympathy with stocks.
United States now as advanced II on