The Providence news. (Providence [R.I.]) 1891-1906, 1902-05-06
Break in the Price Of Shares Will Have
bur a Small Effect Here Investors
Had Been Warned.


The truth is that there were but few
local investors I'm international Power
and American Locomotive shares. One
authority says that they number less
than a dozen.
The unwillngness of Providence people
from the very first to purchase. is well
understood by those who are cognizant
of what occurred Immediately after the
Rhode Island Locomotive works property
was acquired and the Coriss engine
plant was absorbed.
The purchase price of the locomotive
works was less than 5000, 900; but the rev.
enue stamps attached TO the deed, as py
Law then required, would Indicate that
more than 100000 had been invested,
whereas the syndicate had but s6ooooo 10
make their deals with.
The revenue stamp feature or the pur-
chase having been exploited in the col
umns of the press, there sprang up
sentiment which was based upon the
rock of caution and the ever present con-
servatism which sticks out prominently
in this community.
Again. there was good deal OF hauling
and pulling before John G.. Massie OF the
Peoples Savings bank who was repre-
senting the bondholders committee, would
accept the terms offered by the Hoadley-
Letter syndicate and deliver TO IL, the
property, while the published guarded
statements OF the principals, as well as
the printed interviews with others, did
not increase confidence in the ultimate
success OF the enterprise, the Messrs.
Hoadley had undertaken.
At no time since the two plants have
been in operation. Notwithstanding they
have had and filled large orders and are
still endeavoring TO catch up with others
that were booked months ago, have the
local bank officials been inclined TO take
the Hoadleys to their bosoms.
The number of local investors was
therefore quite limited, and most of them
were persona friends of Mr.. Hoadley,
the local representative of the syndicate.
These were tipped off that the American
Locomotive and the international Power
were good things TO take on and hold, as
the latter was sure to go to 225 before mid
summer. Those who were closest In
touch were certain that that high-water
mark would be reached.
That it wasn't is said TO be due TO
little slip-up based upon too much con-
fidence i'm one In New York who couldn't
or wouldn't stand up to the scratch.
Just as the good -thing-to have tip was
given out. was the later tip TO close deals
and sell out dropped TO the favored ones.
They began TO unload and id so proft-
ably The last block of American Loco
motive stock sold here was delivered at
1O0Is The last block of international
Power was disposed of at 1854, although
the holder had given his broker stop
order at 100. Last weeks top price Tor
international Power was l9e; yesterday
Il closed at 30 bid, 100 asked.
There was no ST. Lawrence and Adiron-
dack Railwalb Storage Power, Hacken-
sack Meadows or North American Lum-
ber and Pulp held here, so far as can be
ascertained.
There was, however, quite a buying
OF General Carriage.
This stock was not sold or bought on
margins. Two brokerage firms dealt In
Il. They had 10 pay spot cash for the
stock and demanded cash on deliverey.
One house on lower Westminster street
did the bulk OF the selling, the aggre-
gate transactions OF both houses amount
ing TO about 5000 shares This was sold at
II, the purchasers taking the stock out
OF the market and salting II away for
appreciation that was declared not only
TO be a dead certainty, but very near at
hand.
There is a dead certainty and Il looks
like the death of the several profits that
had been counted upon, for against the
top notch price OF 20lz for last week the
closing market rate last night was three.
There Is absolutely no truth I'm the
averment that tho local banks were load
ed up with the Webb Meyer stocks, taken
as collateral security for loans.
Every bank officer who has been inter
viewed emphatically says that at no
time would or did they loan dollar on
the securities
The Webb Meyer combination may go
down to the bottomless pit OF hopeless
hope. where stocks are quoted at moth
ing minus" and when the point Is
reached that there is nothing left but the
frazzled end OF utter nothingness, the
Providence banks Will be no greater losers
because % the booming OF these securi-
ties than they were before the boom was
ever dreamed OF.
THE WORST OVER.
New York. May s.-There was not much
evidence In wall Street this morning o'
| the disturbed conditions OF yesterday
| There was a very general conviction tha
II nf ottft N