The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-10
LOCAL INVESTORS SUFFER
Hundreds of Thousands of Dollars
Lost in the Market Panic.


Paper Profits of the Boom Wiped Out
counts With Them Government
Clerks Among the Many Victims.
Washington's f Street world was as
badly demoralized yesterday as it has
ever been in the history of the city, not
even excepting the panic times of
eight years ago. when several of the
financial institutions were threatened.
This city has been as wild over the re-
cent tremendous boom in prices in the
stock market as the remainder of the
country. Many fortunes have been
made, or paper, during the past siX
months, and they have been doubled in
the last two or three weeks in the sky
rocketing of prices. People in all
grades of society have been stricken
with the fever to make money easily
and quickly. Tales of immense win
nings have filtered out of F Street to
every art of the city, and drawn thou
sands of inexperienced people into the
net. Yesterdays crash wiped out the
greater part of all these paper profits,
and in addition it took from many bank
accounts the savings of years. Last
night in the streets and hotel lobbies
little was discussed except the stock
market. and the many stories of finan-
cial reverses.
The losses sustained were in some
cases very heavy. Several men are
known to have sold out stocks on which
the losses were from $4,000 to $4,000
The lesser reverses, ranging from a few
hundreds to $1,000. probably mounted
into the hundreds. Every broker in the
CITY Yesterday sent over to New Yerk
many thousands of dollars of margins
In addition to selling out thousands of
shares of stock. representing heavy
losses. More margins were called for
at the close last night. and more Will
be called for this morning.
1t is as yet impossible TO form any
definite idea as to the total amount OF
the losses sustained, owing to the fact
that many accounts were protected for
customers yesterday by the brokers'
been sold out These accounts will be
closed later, perhaps today, if the mar
ket RECEIVERS On the other hand. they
viii be closed out at still lower figures if
there is further break today.
This leniency ON the part of the
brokers was in some cases due to be-
lief that the market would recover as
It did in the afternoon, and to unwil-
lIngness to sacrifice customers money
in the reckless throwing over OF stock
at the worst moment of the day. In
general however, the brokers sought to
protect themselves simply, and did not
sell at the bottom, because sufticient
margins were not up to cover losses
The break came in such an avalanche
between the hours of II and u o'clock
that brokers did not have time to call
their customers before margins were
all wiped out. and there were immense
losses in addition shown. Many of
these accounts must be sacrificed as
soon as the market recovers to the point
where the broker is saved. 1t is esu-
mated by one conservative broker that
the total losses will be at least $500. 900.
One of the most sensational losses of
the day was made curiously enough on
the short side of the market, in North
ern Pacific. A speculator went short of
the stock a few days ago. around $50, it
is understood. Like many others he
knew that the price of the stock was
too high intrinsically, and he did not
believe the stories of a corner in the
stock. He failed to cover on Wednes-
day, believing that the corner would be
broken. After the close of the market,
and during the evening Wednesday he
heard the stories OF $50 share being
offered for the loan of stock over night,
and he became aware that yesterday
might see the price put to almost any
height. He attempted to buy his 100
shares in at 200, it is said, but failed.
Yesterday morning Northern Pacific
opened at 17p. and went up by leaps and
bounds in "a minute or two to 800. Later
ii advanced 10 500 d share, and one lot
of stock was bought for cash at 81, 600 a
share. The local speculator, a promi-
nent lawyer. bought at 300. it is said. He
lost all the money he had in the world
in the deal 1t is not known that there
was a share of long Northern Pacific
stock held in this city after Wednesday
One prominent business man ac-
knowledged last night that his losses
were about $4,000. They represented
all that he has in the world outside of
his business. Another speculator had
several hundred shares Of Peoples Gas
and other lots of stock in various parts
of the list. He was forced to sell out
everything near the bottom, and his
losses wers well up in the tens of
thousands.
Immense losses were sustained by
Washinstonians on the steel securities.
1t has been the general opinion that
these stocks were sure to have a fine
advance, owing to the glowing accounts
of the big business done by the new
trust, and the expectation that the
common stock VIII be put on dividend
basis. The purchases of both the pre-
ferred and the common have been