The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1901-05-17
WITHOUT A PRECEDENT
SEVEREST TWIST EVER EXPERT
ENCED IN THE HISTORY OF
WALL STREET.
NORTHERN PACIFIC SCARS

Until 1000 Is Reached-Other
Stocks Weaken and Are Unloaded
Without Regard to Price-Money
Becomes Very Stringent and 60 Per
Cent Is Bid by Borrowers.
New York, May 10.-The threaten
mg condition Cf affairs which has de-
VelOped in the stock market cul
minated in one of the severest twists
ever experienced in Wall street The
corner in Northern Pacific was the
impelling cause of the crisis, owing to
the threat contained in the ruinous
terms forced upon the shorts in that
stock that disastrous liquidation
would be forced at other points.
Strenuous efforts were made by the
most powerful financial interests in
the country to avert the threatening
trouble and almost unlimited support
ing orders were placed in the market
for the opening in anticipation of the
heavy selling which was to come.
ReasSuring expressions were dissent
mated from the principal parties in
interest to the Northern Pacific con-
troversy. designed to dissuade alarmed
holders from precipitate selling of
these stocks, but all these precautions
proved unavailing in face of the IN
mistakeable index afforded by the
price of Northern Pacific that the
corner in that stock was intact and
therefore that the bitter controversy
over the control of the property was
still unsettled. When Northern Pa
cific began selling at 200 and 300 and
300, and even as high as 700 on reg
ular transactions and at 1000 for
cash, the appalling possibilities of the
forced covering Of the largest short
ages at those terms weakened the
whole market and prices crumbled
away with the utmost violence dur
ing the second hour.
The volume of the blocks unloaded
and the reckless disregard of the
price which they brought were with
out precedent in the memory of the
oldest trader. Before any check had
come to the tremendous liquidation
Delaware and Hudson had lost So
points, Manhattan 80, Union Pacific
BS, Rock Island IS 10, Atchison SO IL,
st. Paul 80 10. Missouri Pacific SO
and long list Of other stocks of from
8 to 80 points. The predominance of
the Northern Pacific corner on the
situation was demonstrated by the
quick rally in the market when the
announcement was made that the con-
tending
Interests In Northern Pacific
would not require deliveries of stock
during the day. Pretty broad intima-
lions were also thrown out that such
delivery would not be required so
long as present conditions last. The
exemption of Northern Pacific from
the usual clearing house requirements
of delivery still further allayed ap-
prehension. The quotations Of the
stock fell back to 300, both on cash
and on regular transactions, after
these announcements and there was a
scramble to cover on the part of pro-
fessional shorts. There were large
numbers of bargain hunters also in
the market. The combined effect of
this buying was reflected in rallies
extending in Delaware and Hudson to
IS, Manhattan "a, Rock Island 80.
Atchison 80, United States Steel, pre-
ferred, 20, actually carrying the stock
2 IL points over the previous days
close; Missouri Pacific %. Louisville
23, Amalgamated Copper %, st. Paul
81, and large number Of other stocks
from to 20 points. This rally was
not fully held. The market became
much quieter during the latter part
of the day, but the extreme feverish-
ness and nervousness continued. Even
the action of the bankers by agree
ment in lending s16,00O,O00 on the
exchange at per cent failed to re-
lieve the close from such very cratic
movements and renewed bad breaks
in prices. The extension of shrinka
In the value Of securities and the cor
responding decrease in credits made
money very stringent and 60 per cent
was bid at one time by those seeking
accommodation. The action of the AS
ISOLATED banks forced the rate down
to per cent. The tone of the market
at the close and the fact that the con-
troversy which precipitated the trou-
bic was still unsettled left the feeling
Of uneasiness retaining large force in
the financial district.
Selling of bonds to protect stock
holders made that department of the
market weak in sympathy with stock.
New AS advanced IA on the last call.