Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1901-05-10
THE WALL STREET PANIC.

financial history will probably regard
as the most exciting day In the annals
of Wall street. The corner 10 Northern
Pacific stock aud the fright 1t caused 10
spectators brought about Q mad rush
TO sell stocks. Only one stock went up
Northern Paciic-showing that the
corner Yves still in force. As 1t went up
other securities fell away with sensa-
tional changes in prices between trans
actions. Commission houses carrying
securities for customers on margins
were forced to throw them over at any
price, and for more than two hours IL
seemed that there was no support any
where. In the afternoon the bank
presidents had Q conference and de-
cided to lend $4,000, 900 at 6per cent.
Then 1t was announced that trading 10
Northern Pacific for the present would
be ex-clearing house, that lie, not for
i'm mediate delivery. These two re-
assuring developments brought about
sharp rally in the general list and for
the first time 10 "a hours holders OF
stocks had breathing spell.
The state of excitement wss apparent
all through the financial district during
the period OF the stock panic.
Now and then a white-faced woman
would peer from cab outside brok'
er's office and would be driven Oh 10
f.ipting condition after receiving o
message from the interior. Many
women were In Mysteries. -.
Wherever any near approach could
be made to q ticker or q board on
which quotations were posted there
we're thronss OF excited spectators
scrambling for view OF the markets
course. Bot the real stress OF the &C.
casion came upon men who were smut
up In either their private ofiices or
those OF brokers or who were struggling
and even fighting on the floor OF the
Exchsnge. The outsiders could OBJ
| tain little idea OF the actual occurren.
ces on the Exchange, as the brokers are
remote from the public galleries 10
their temporary quarters In the Fro
duce Exchange.
10 the brokers' Offices eat many men
who were reduced to absolute ruin as o
result of Is minutes proceedings on the
stock exchange. Some OF these had
J been made opulent within few weeks
1 past az result OF the unparalleled rise
OF prices. With the true gambling spir-
1t they have replaced ell their winnings
in new ventures on each successful turn.
Yesterdays drop, therefore, wipes them
! out. 10 many cases one could see the
gamblers fortitude with which the
chances OF gain we're accepted.
After the business OF the day was over
Mr.. Russell Sage who two weeks ago
predicted the result said: "This is very
bad, very bad; but / think that the
worst Is over. Prices will come up q
little. Yes, they will come up." The
Baltimore Sun thus summonarizes the
causes OF the financial earthquake in
Wall street:
1. The Morgau-Hill interests con-
trolling James J. Hili's railroad, the
Great Northern, and also the Northern
Pacific, began . move to secure control
of the Burlington.
Q. The directors of the Burlington
voted to recommend the sale to the
Morgsn-Hill interests.
8. The Hartman and Kuhn, Loeb &
20. interests. which had been buying
| Union Pacific stock on large scale,
| were alarmed at the prospect OF the
Burlington deal being harmful to the
! Union Pacific and set about to prevent
Iit. They tried to do this by acquiring
enough stock OF the Northern Pacific
to make ratification OF the deal impos'
sble.
4. The Morgan.Hill interests, seeing
the move of their rivals, held to their
Northern Pacific stock tightly to pre-
vent Hartman and Kuhn, Loeb & Co.
from 0ettipgit.
5. When the Hartman and Kuhn,
Loeb & Co. interests bought all the
Northern Pacific stock they could get
the price began to rise rapidly. Soon
little OF the stock was left outside the
control OF the great fnanciers who
were trying to absorb 1t.
6. In this battle of the giants James
r. Keene, who Is called the shrewdest
specuIator in Wall street, saw bis
chance. 1t Is said that he sent out bis
agents and bought up most Of the float
ing stock. Brokers who were caught
short by the resulting "corner" made
frantic efforts to secure stock. They
bid 1t up to enormous figures and of.
ferad as much as $500 for the loan oil
the stock "a hours, in order that they
might meet their contracts.
Thus the stock rose to the extraor-
binary figure of 81 900 share yester.
day. II dropped back to $500 when ].
P. Morgan 8. Co. and Kuhn, Loeb &
Co. eased the situation by announcing
that settlements would not be made
With the shorts at yesterdays fancy
quotations, but at what would general
ly be considered a fair price. The
shorts will now have to get out Of their
predicament at the terms offered by
these two houses.
The Morgan. Hill interests claim to
have held on to enough OF the stock to
push through the Burlington deal.
The Hartman and Kuhn, Loeb & Co.
interests claim to have enough to block
the deal.
The variations 10 the price OF shares
do not represent changes In the actual
value OF the property, but merely the
phases of thu situation created by the
battle of the financial moguls for con-
troll.
The general stock market, rendered
extremely sensitive by overspeculation,
reacted. Speculators' margins were
wiped out and brokers had to cell the
securities placed with them as collat-
eral to save themselves from loss.
This added to the weight Of the selling
and many values shrank fast.
TIE FAIRFAX TAX LEvY.-Last
week, In reporting the tax levy for
1901, as fixed by the Board of Super
/ visors. We pave the road tax as 40