The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-05-10
AN UNPRECEDENTED PANIC
The Crash Came Notwithstanding
Strenuous Efforts 10 Avert II.
THE CORNER IN NORTHERN PACIFIC
Was the Impelline Cause OF the Crisis
The Rate for Call Money Ran
Up to so Per Cent.

New York, May a.-rhe threatening con.
dillon OF affairs which developed In the
stock market Yesterday eliminated today
In one OF the severest twists ever ex.
perienced In Wall street. The corner In
Northern Paciheewas the impeiling cause
Of the crisis owing TO the threat. contained
In the ruinous terms forced upon the
shorts In that stock. that disastrous ilaul.
dation would he forced ut other points.
Strenuous efforts were made by the most
powerful financial interests In the country
to avert the threatened trouble and nj.
most unlimited supporting orders were
placed In the market for the opening in
anticipation Of the selling which was TO
come. Reassuring expressions were dis.
seuinated from the principal parties in
interest 10 the Northern Pacific contro-
versy. designed to dlssuade alarmed hold.
ers from procipltate selling Of their
7 stocks, but all these precautions proved
unayailing in face OF the unmlstakablo
Index Afforded by the price of Nprthe n
Pacific that the corner in that stock was
Intact and therefore that the bitter con
troversy over the control of property was
still unsettled.
When Northern Pacific began ssusug at
500 and $500 and 5000 and even as hgn
as 500, in regular transactions. and at
$1,000 for cash, the appalling possibilities
OF the forced covering OF large shortages
AT those terms weakened the whole market
aud prices crumbed away with the ut.
most violence during the second hour. The
volume of the blocks unloaded were with.
out precedent In the memory Of the Oldest
raners Before any check had come to
me tremendous liquidation, Delaware ana
hudson had lost 80 points, Union Pacific
3Ss Rock Island 35h Atchlson 3alS, 81
raul 3o15, Missouri Pacific ~ and long
list of Other stocks OF from , TO 10 points.
corner on the situation was demonstrate
81 ny the quick rally In the market when
Tue announcement was made that the con.
tending Interests IN Northern Pacific would
ty broad limitations were also thrown
out that much delivery would not be re.
CURED so long as present conditions last
The exemption OF Northern Pacific from
the usual clearing house requirements OF
delivery. still further alaycd apprcheu-
sion The quotations of the stock fol hack
70 SaNp both ON cash and on regular trans
actions, after these announcements ana
there was a scramble to cover on the part
or professional shorts. There were large
numbers Of bargain hunters also In tho
market The combined effort OF this buy.
ing was reflected In rallies extending in
Delaware and Hudson to 81, Manhattan
"a, Rock Island 49, Atchison 10. United
states Steel preferred 20, actually carry.
Ing the stock 24 points over yesterday s
close; Missouri Pacific %. Louisville 2S.
Amalgamated Copper %, st, PAM 81 anu
large number OF other stocks from =
to 20 points. This rally was not held. The
market became much quieter during the
latter part Of the day, but the extreme
foverishness and nervousness continued
| Even the action Of the bankers. by agree
ment. In lending s16,O0O0o0 on the ex.
change ut per cent failed TO relieve the
close from such very cratic movements,
and renewed bad breaks In prices. The
extension Of shrlnkage In the value of SCI
curltcs, and the corresponding decrease In
credits. made money very stringent and 10
per cent was bid at ono time by those
seeking accommodation. The action Of the
associated banks forced the rate down TO
per cent, The feverish tone Of tho
market at the close and the fact that the
controversy which had preclpitatcd the
trouble was still unsettled left the feel
ing OF nneaslness retaining long force in
the financial district.
Selling of bonds to protect Stockholders
made that department weak In sympathy
with stocks.