New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-04
Financial.
The Financial World.

NseNs NdS tAbecteds tOliOWing precedent.
start on Monday: but It was Tuesday instead.
and Monday was day of severe Iiquidatioa-
The precedent has been in the long decline OF
the summer. that whenever the market closed
in so deroralized state Il looked as IL the next
day would see something like a panic. IL has
happened that the next day brought a cessation
of the selling and partial recovery. This fact
prompted the surmise expressed at the end OF
last weeks article that while the market had
closed the day before in a bad condition. Il
was probable there would be rally on Mon
day. There would have been such a rally. bu.
it happened that another large account reaching
the stage 0: exhausted margin. was sold on,
that day. with havoc to prices; and IL was only
when the selling from this quarter had ceased
that the market had a chance to improve
10 advanced Tuesday and again Wednesday
morning; hut in the afternoon, il broke away
apparently as badly ever. In this case how
ever the selling was seemingly only bear raid
very different from the Outpour Of real stuy
which had broken prices Monday: 50 the
short sellers. discovering that more long
stock had come out. and that the borrowing de-
mand for stocks was large and urgent. started
TO cover their short lines rather hastily on
Thursday morning: and since then the market
has had a stiff advance. From the lowest Of
the week, there has been a very evenly dis
tributed rise Of between four and Eve points
II was obvious that if the market was TO ad-
vance at ALL the influence OF the SteeLs would
be paramount; ard these stocks rather led the
advance going up very steadily. though not 20
the same extent some OtheTs-St. Paul. for
example
AS during Mondays decline, q thousand Wild
rumors were in circulation OF this or tina.
capitalist or institution being IN trouble. 80
when the market turned. there were as many az
Standard Oil men buying. Of Messrs Cassatt
and Rockefeller having buried the Ratchet OF
a colossal short interest which would be forced
to cover, and more Of the same What did ap-
pear was that recognized Morgan brokers were
unusually well supplied with buying orders
while the market was advancing
The announcement Of the troubles in BaIti-
more and Richmond. in connection with the Sea-
board Air Line. did not do more than Temporal
rily dampen the market after IT had got fairly
started upward. It Is very certain some such
development had been expected for long time
Indeed. the surprise has been that it held OF
so long. The Seaboard has been white elephant
on the hands Of the Baltimore and Richmond
bankers from the day they assisted Pres.dsn.
Williams tn his ambitious schemes OF extension:
and the wonder has been whether the company
or the creditors would go first. When it was
announced recently that the road had been
bought for the Rock Island. II seemed as II II
Rock Island people repudiated the bargain.
This would appear to have been the final blow
The question asked is. who will finally get
the road? One OF the bull rumors was that
II had gone 70 the Refugian Peccatorum at the
corner Of Wall and Broad That would seem N
be its natural shelter. One thing is certain
It must be taken care Of somewhere. tt is A
sort of railroad waif now.
Every other day lately. the papers have had
stories. sometimes dressed out with sensational
headlines. OF the embarrassments OF rich and
prominent men. No names have been given. but
sometimes the particular individuals have been
pointedly designated Probably most people
have received these tales with smile Of mere
duty. Nevertheless facts are cropping out
which show that not half the truth has been
told The tremendous decline in the market
has inflicted losses so enormous that men
ranked as multi-rnillionaires have been driven
to make sacrifice sales OF their investments be-
cause they were In severe straits to meet their
engagements This IS truly rich mans panic.
and the number Of rich men who have been
more or less crippled is simply astonishing
The cause Of this IS. that fall IN security
prices which should have been spread over eigh-
teen months or two years. has been compressed
into nine months. In these matters the ele-
ment OF time b all important. Now while a de-
cline IN prices was inevitable. after the wild
speculation in which the country INDUCED and
a decline which no combination OF capitalists
could avert; yet It is sure that except for spe-
cial causes. the decIIne would have been com
paratively slow: whereas It has been rapid a.
most beyond precedent. and therefore attended
with such disastrous results The special
causes are not far to seek The general move
rnent OF expansion brought great interests into
collision.
When Mr. Rockefeller became the fnsofrfnz
force behind George Gould and the Missouri
Pacific and Wabash systems were mapped out
to reach tidewater they came into collision with
the Pennsylvania, because it was through Penn
sylvania territory the new extensions we're co
come. Mr.. Cassatt and his directors resented
the invasion. Anita gonisrn between these pow
erfuI interests was a known fact long before the
public was startled BY a striking exhibition os
it; but how hot and aggressive Il vas. was not
known.
In the week ending May 2S-d last. Wall Street
had two sensations One was the announcement
that the new issue OF Pennsylvania stock had
been underwritten by leading bankers. thus f.
surfing the success Of the issue which had been
threatened with failure because o. the rapidly
falling market; the other was the startling news
that the Pennsylvania Company had chopped
down all the Western Unions telegraph poles
along it's lines This was the open declaration
of how deep was the antagonist between Mr.
Cassatt and Mr.. Rockefeller. and the revelation
gave the Street considerable shaking up The
market had been breaking in certain directions
before this From that time to this II has dons
nothing but break
That the event was orninous Of the future was
plainly said ir this column. Discussing thu
state Of affairs II said:
This is not the first time Mr. Cassatt and NJ.