Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1901-05-16
PANIC IN STOCKS.
A Big Tumble in Prices on Wall
Street.
Railway shares Drop from 30 to 60
pointsand Hundreds Of Spectators
are Ruined - Northern Pacific
Railway stock Scars Until
$1,000 a Share Is Bid.

y
tacle of bear panic and a bull panic
in progress side by side. The bear
panic in Northern Pacific was the inn
pelling cause of the demoralized rush
to sell other stocks, which was held
in check for time after the astound-
ing opening in Northern Pacific, but
which gained almost panic force in
the late trading. Prices were not
toppled over as direct result of call
ing of loans and forced lquidatio
such as often eliminate period OF
over-speculation, although there was
very general broadening c. mar
gins and added severity in the scru-
tiny of collateral.
Any one seeking to explain yester-
days movement will have to go back
over IA period of many weeks and for
every suggestion of a great financial
combination he will have to suppose
deep seated doubt such as was
shown by the disclosures of yester-
day in Northern Pacific. 1t came
with a chilly shock to the spectators
that the countrys great financial
forces, which it was supposed We're
earnestly working in accord to secure
community of interests in the
whole railroad world, were in fact
arrayed against each other in meas
ures of bitter retaliation. The Bur-
lington deal on which such far-reach-
ing conclusions have been based by
the spectators, was seen to be in
jeopardy.
1t was learned that the level to
which prices had attained had in
duced insiders, presumably best post
ed on the value of their property to
sell sufficient holdings to endanger
their control. This explanation of
the competitive buying which has in
duced some of the recent sensational
advances threw doubt upon the whole
series of rumors of plans for great
consultations and trms-continental
combinations among the railroads. In
other words the broad intimation was
carried by the disclosures growing
out of the Northern Pacific develop
ment that the recent buying of stocks
was for the most part wholly specu-
lative and without the supposed basis
in investment purposes.
New York, May 1O.-Bitter stress
developed in Wall street yesterday by
the second hour of trading on the
stock exchange. The violence of the
commotion had spent much of IT'S
force, at least for the time being,
when the chairman's gavel fell an
nouncing the close of the days pro-
ceedings. The casualties were great
and the field of battle was strewn
with the wounded, and maybe with
the dying. But of actual fatalities
none was reached of Importance.
During the height of the panic ru-
mors of Insolvency were handed
about more quickly than they could
be reported
The principal banks agreed to form
pool and raise a fund to force the
money rate down to & per cent. The
bid for money had been run up to 60
per cent. and was threatening to
keep alive the panic. y dozen banks
quickly came to an agreement to
raise $1GO,000,O00, with implied will
ingness to increase the sum if neces-
sary. There were very heavy loans
placed also by individual banks, rang
ing in some cases to $250OO,000 and
$3O,OOO,0OO
In the brokers' offices sat many
men who were reduced to absolute
ruin as a result or Is minutes pro-
ceedings on the stock exchange. Some
of these have been made opulent
within a few weeks past as result
of the unparalleled rise of prices.
With the true gambling spirit they
replaced all their winnings in new
ventures on each successful turn.
Yesterdays drop wiped them all out.
The attraction of this market has
brought into it a constantly increas-
ing assortment of inexperienced
spectators; men and women who
have brought long standing boards
from secret places and from savings
bank deposits, with the determine
tion to make one successful stroke
and then retire with the proceeds.
The demonstrations from this class,
which includes many women specula-
tors, furnished the hysterical scenes
and sensations of the day.
The price paid for Northern Pacific
stock ran up quickly to 5000 per share
and then to $500, to $500, and even to
S700 per share on regular transac-
tions and $1,000 per share for cash.
The cash price paid meant that
shorts who were unable to borrow
the stock for delivery had to pay
whatever cash price the engineers of
the corner chose to ask for it. The
figures indicated in these transactions
meant ruin for a large outstanding
short interest in the stock. The per-
cepton of this fact was the principal
impelling cause in producing the de-
moralization in the stock market.
Such a shaking out of stocks as oc-
Cured during the second hour of the
stock market was never seen before.
In Delaware & Hundson the eX-
treme decline was 50 points, Manhat-
tan 3SHs, Rock Island 351a, Union Pa
citic 3S, Atchison 34H, Atchison pre-
ferred 2SR, St. Paul 30H., Missouri
Pacific 80, Southern Pacific 29A, Uni
ted States Steel preferred 26R, while
a range of to 30 points would cover
the collapse in nearly every active
stock in the exchange.
Glade "A New Record.
New York, May 10.-The Hamburg
American line steamship Deutsch land