The age-herald., 1901-05-10

ceedings had commenced on the Stock Exchange that panic could be averted only by the strongest measures and with the greatest difficulty. The fact was ap- parent that the corner in Northern Pa cific was still unbroken. The excited bid ding last night to secure the stock for de- livery today made that very apparent The first steps to avert the panic were devoted to circulating reports that the conferences between the contending in terests in Northern Pacific, which con tinued in one form or another through out the night had resulted in compro- mise. which would free the shorts in the stock from their compromised position. These efforts proved utterly ineffective in the face of the first quotations for Northern Pacific on the tape. The price paid for the stock ran up quickly to $200 per share and then to $40O to $500 and even to S00 per share or regular transactions and sl00o per share for cash. The cash price meant tbat unfortunate shorts who were unable to borrow the stock last night for delivery today had to pay what ever cash prices the engineers of the cor ner chose to ask for 1t. The figures in- dicated in these open transactions meant ruin for a very large outstanding short interest in the stock.
 Cause of Generalization.
 The perception of this fact was the principal impelling cause in producing the demoralization in the stock market The concerted effort to support the mar ket by buying all stocks which might be offered, which is always the most effec- tive manner of dissuading persons from selling, and which was undertaken, &C., cording to the current belief in Wall street. by some of the most powerful capitalists in the country, was swept away in the deluge of offerings which came upon the market. As prices began to go down the disposition to buy de- creased, and the determination to sell seemed to grow. Such shoveling out of stocks as occurred during the second hour of today's stock market was never, seen. After a sale had been made at a fixed price, a broker would throw in an additional block at anywhere from to 10 points without stopping to demand any intermediate price for his offering The extent of the declaration during the hal ,hour was great in some cases as has laken weeks to attain on the ad- vance, although all observers have agreed that the rate at which prices have been going up has exceeded any previous experience. The figures alone suffice to indicate the preparations of the drop.
 In Delaware and Hudson the extreme decline was 59 points; Manhattan 3S7s Rock Island 3o15; Union Pacific 301z; Atchison 3fs; Atchison preferred 2Sia; St. Paul 3012; Missouri Pacific 32; South ern Pacific 29&; United States Steel pre- ferred 26h. While a range of to 30 points would cover the collapse in nearly every active stock in the exchange. In the outside market the stress of the de- mand for funds was shown by the per- pendlcnlar drop in the price of Stand ard oil of III points over night. The stock sold at $50, compared with S21 last night The same urgent need was reflected in the bond market. where all grades of bonds were offered on a declinin scale The sacrifices there were naturally much less than in the stock department of the market.
 After the Turn.
 After the turn in the market came which it did about noon, some noticeable selling of bonds still continued, and this was explained as being due to a wish to secure funds to buy stocks at the attrac- tive level of prices to which the market had fallen. In fact the bargain hunter was on hand and alert, and even in such scene of disaster as that presented there are those who reap the benefit The drop in prices carried stocks of many substantial properties down to a level at which the current rate of dividends paid upon them and we'll assured made them attractive investments
 It was a very noticeable fact that throughout the most acute period of to- days disturbance there was nothing heard to indicate doubt of the sound and prosperous conditions of industry and business at large in the country. The stock market collapse was attributed ex- clusively to over-speculation and an over extension of credits used in holding stock which was not designed to keep. but to sell at higher price. The shock which caused the collapse was the Northern Pa cific corner. without dispute. The harm which might result from the Northern Pacific episode was by no means so great in anyone's mind as to justify the extent of the collapse in prices. But the delicate situation of the market, due to over-ex- tension of speculation. made 1t vulnerable to this shock. The decline once in force gained cumulative strength.
 Margins Wiped Out.
 speculators' bargins were wiped out and brokers had to sell the securities con nected with them as collateral to save themselves from loss, thus adding to the weight of the selling The shrinkare in the market value of securities placed with bankers as collateral made 1t neces- sary that they should demand increased collateral Or collect the loans with which speculators were holding stocks. With