Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1901-05-10
MANY REDUCED TO RUIN
Appalling Result of War in North
ern Pacific Stocks.

Appalling Result OF ar III Nofth-
ern Pacific Stocks.
New York. May 10.-Bitter stress
developed in Wall street by the sec
ond hour OF trading on the stock e%-
change Yesterday. The violence OF
the cou,nnotion HAD spent much OF its
force. at least for the time being,
when the ctairman's gavel fell an
nouncing the close of the days pro-
ceedines. The casualties We're great
and the field of battle was streWn
with the wounded and may be with
the diving But of actual fatalities
none was recorded of Importance
during the day. During the height
of he panic rumors OF insoiEencies
were handed about more quickly
than they could be reported But
no confirIna tons could be had of the
intimations of financial wreck. Those
against whom the ruInors pointed
refused even to show any sign OF DIS
tress, and professed themselves ready
to meet all obligations. Notwith-
standing these assurances, the tact
was TOO obvious from the crash OF
values on the exchange. that credits
and borrowing power were shrink
ing at too prodig;ous rate, not to
leave the mind of the whole finar-
cial world in q condition of intense
strain. But the indications at the
close OF the day were strong that
the principal damage had been
wrought upon the speculative class.
or upon holders of securities on mar
gin for whatever purpose.
The shrinkage of collateral made
it necessary for the banks in many
eases to exact an additional collateI-
al during the Gay, and this added
much to tie distress for a time. But
in the late dealings the principal
banks in the financial district agreed
to form Z; pool and raise fund to
loan the money rate down to 6 per
cent on the stock exchange. The
bid for money had been run up to 60
per cent ard was reatening to keep
alive the panic. The dozen banks
quickly came to an agreement to
raise S16,GO0,000, with implied willing
ness to raise the SUM if necessary.
There were heavy loans placed also
by Individual banks, ranging in some
cases to S25,O00,oO0 and s30,Oo0,000.
Through the early part of the day
bankers exacted the market rate for
loans. But with the growing need to
suppress the panic they offered the
rate down to per cent.
t1S real SlIcsoS oi the oCCdSlOu CSIllS
upon the men who were shut up in
either their private offices or those
of brokers who were struggling and
even fighting on the floor of the eX-
change.
IN the brokers' offices sat many
men who were reduced to absolute
ruin as a result Of fifteen minutes
proceedings on the stock exchange.
Some of these have been made opu-
lent within a few weeks past as Il
result of the unparalleled rise of
prices. With the true gambling spirit
they have replaced all their winnings
in new ventures on each successful
turn. Yesterdays drop, therefore.
wiped them all out. In many cases
one could see the gamblers fortitude
with which the chances Of gain were
accepted. But the glittering attrac-
ton of this market has brought into
it a constantly increasing assortment
of more staid and experienced spec
ulators; men and women who have
brought long standing boards from
secret places and from savings bank
deposits with the determination to
make one successful stroke and then
retire with the proceeds.
The extent of the decline during
the day was as great in some cases
as has taken weeks to attain on the
advance. The figures alone suffice to
indicate the proportions of the drop
In Delaware & Hudson the extreme
decline was SO points. Manhattan
3s5s. Rock Island 35H. Union Pacific
SO, Atchison 34H,. Atchison preferred
80, Southern Pacific 2oAt, United
States Steel preferred 26K, while a
range OF to 80 points would cover
the rGI|1nCa n nearly
stock on the stock exchange.
In the outside market the stress
of the demand for funds was shown
| by the perpendicular drop. in the
price of Standard Oil I'll points over
night