The times., 1901-05-10

1ency TO lie Extended the shorts.
NEW YORK. May 9-The responsibility
for one OF the most violent panics in the
history Of the New York Stock Exchange
must be placed - the doors Of those cap
italists who willingly or otherwise. con-
trived to corner Northern Pacific stock.
The conditions created therein virtually
eliminated today when Northern Pacific
stock, which closed last night at 100, sold
at 500 share and at no less than 81 .05l
n share for immediate delivery.
When this state OF affairs had been
reached the firms controlling the available
supply of Northern Pacific common mag
unanimously announced that they would
not enforce the deliveries today of the
stock due to them by the unfortunate
short interest Had this announcement
been made prior to the opening of bust
ness it is possible that some Of the sub
sequent startling stock market develop
ments might have been averted. At all
events the enormous losses suffered in
consequence of the corner in Northern
Pacific forced tremendous liquidations in
the remainder of the market.
The declines soon attained proportions
which wiped out margined accounts and
naturally induced further liquidation, un
I'll before midday the stock market was in
state of absolute panic The prices Of Sc
curities were in many instances almost
abruptly cut in two. Delaware and Hud-
son declined nearly 60 points. while such
losses as 80 points were shown in St Paul,
"a in Louisville and Nashville, % in Atchi-
son common, 2Sl2 in Atchison preferred,
16 in New York Central, 81 in Missouri
Pacific, and So I'm Manhattan.
Among the lower priced stocks such Sc
Viz
Chesapeake and Ohio, II points in Erie
common. 20 points in Southern Pacific,
and II points in Texas and Pacific.
1t goes without saying that it is un-
necessary to attribute any other than
technical causes for the specific losses
scored. From these points OF extreme
depression there were naturally compare
lively rapid rallies. Thus, for example
the United States Steel stocks, which
dropped, respectively, - points for the
common and 25l5 points for the preferred,
recovered nearly the whole OF their loss
before noon.
At the same time. the usual bargain
hunters were reported in numbers and
their buying was indicated in the con-
siderable amount of stocks purchased for
cash Ii was, indeed, chiefly the buying
of this character which served to check
the declines of the forenoon, while il
could not truthfully be said that anything
approaching concerted support could be
detected in the dealings.
II is. perhaps, fortunate both for brok-
ers and their customers that the decline
took place with the rapidity with which il
did. because, as was truthfuily said,
there was a period this morning when
beyond question a very considerable num-
Der Of firms and Spectators were vir-
tualIy insoivent. The lenders of money
were not urgent in their demands, and in
deed looked rather 10 the identity OF the
borrower than TO the collateral Of his
loans So violent, indeed, were the huc-
tuations that it was impossible to tell
at any given time how an account stood
upon the books of the broker or how the
brokers' loans stood with his bank.
IL seemed TO be the general opinion
that through the obstinacy, jealousy, and
cupidity Of a few men the most severe
blow had been struck at the stability Of
the financial situation it has suffered in
years. The attitude taken toward the
money market by a certain large financial
institution. the conduct Of which has on
many previous occasions been menace
TO Wall Street, was also severely criti>
cised.
Vast fortunes and millions Of paper
profits were swept away In the first two
hours dealings in the market, and yet,
outside Of the Stock Exchange, the cOun-
try's trade progressed without a ripple,
and no causes could be assigned for the
astonishing results displayed, save the
utter arrangement of the speculative situa-
ton brought about by reason Of the
Northern Pacific corner.