New-York tribune., 1902-05-06
FAILURES FOLLOW SLUMP.
Continued from first page.

Stock Exchange do not allow such a relation.
If any of our customers wanted to buy any OF
the Meyer stocks outright we would execute
their orders: but we did not buy those stocks
margin
Mr.. Prince formerly connected with the
office OF J. Overton Paine & Co.
Stories of the use of wash sales in putting
up the prices Of the various Webb Meyer is
heard on every side in the Street. The
way in which many Stock Exchange houses
have been induced 10 take up these issues may
be seen from the experience of one of them. by
a member of the firm, as related yesterday af-
ternOon. He said:
"A representative of the interests exploiting
the Meyer stocks called at our office some time
ago and asked us to buy for him quantity of
Rutland preferred and Dominion securities-NO.
II wasn't on eight-pOint margin. but more.
We didn't know the man, but he promptly re-
ferred up TO three houses. all of which assured
us that he safe for any amount. What
could say. when three Stock Exchange
houses gave us their assurance? So bought
the stock for him. the involved being S75.-
600 to 100000 The Dominion Securities stock.
however. a dead weight. as the banks
wouldn't touch it in loan: although the Rut-
land, when sweetened' with other collateral.
was accepted. So a week or two ago we asked
Mr.. Blank to take up his stock. and we are now
mighty glad we did. But there are probably
good many houses in the Street who are caught
with the Meyer stocks, although you couldn't
get them to admit it."
An interesting story afoat yesterday TO
account for the sudden winding up of the boom
in the Meyer stocks According to this story
one of the firms most prominent in the manipu-
lation of these issues had with it's bank over
certifcation credit the amount of several
hundred thousand nd fGad
checks to the full limit before the banks Of
ficers realized that the firm was in difficulties
On the Stock Exchange Rutland preferred
sold down TO Sc and closed at %. a net loss for
the day of points. There were no transactions
in st. Lawrence and Adirondack In the curb
market Dominion Securities which sold at 11SIk
on Friday and at 20 Saturday was diligently
cried yesterday morning at 40 with bids rang
Ing from 10 to %. and sales. Hackensack
Meadows. which found buyers Friday at 20
and one lone customer Saturday at IL, was
offered first at 40 then at 30 and then at 20
with no takers. Later an offer of 100 shares at
20 found buyer. and another lot offered at the
same figure called forth bid of 10 and was
sold so quickly that the bidder was rather taken
aback The next sale was at Il, net loss from
Friday Of 81 points. North American Lumber
and Pulp was offered at %. 10 bid. and no sales.
Di-ALlNOS IN MEADOWS STOCK.
just before the closing OF the market there
was sale Of five hundred shares of Dominion
Securities at so and the market closed with the
stock offered at 40. - bid. About eight hun
dred shares were sold. The heaviest dealings
were in HaCkensack Meadows. two thousand
shares changing hands at prices ranging from
l. To 20. and the market closed with the stock
offered al 90 and 13 bid. North American Lum-
Der and Pulp was offered at 80 with a bid OF
There were no sales. Storage Power closed at
bid. the stock being offered at 6. Only a few
lots changed hands during the day.
In the general stock list the shares which
suffered the most material declines yesterday
were Anaconda. 2l3 points; American Snuff Oh;
Northwest 4; Delaware and Hudson ,; Lacka-
wanna. 31s; General Electric . Long Island.
~; Nickel Plate. second preferred. 21k; New
Haven. >: North American. 25s: Reading. pa
and Westinghouse. 10 Stocks that gained IN
the day included American District Telegraph, .
points; Louisville and Nashville, IA and Wa
bash preferred. l point