Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-08
PANIC IN WALL STREET
Violent Break of Prices in
American Stocks.
is CHARGED TO LAWSON
MARKET SAID TO HAVE FOLLOW,
ED HIS FIRST MOVE.
Over 2, 100000 Shares Traded in Amid
Scenes of Wild Excitement
Copper and q. S. Steel.

The stock market became demor-
allied during the first hour today.
after the weakness had been strenu-
ously contested by supporting or
ders. During these tactics the huc-
ttfations were violent and frequent,
but many prominent stocks were
held at about last nights level, and
Sugar above. Toward the end OF
the hour, however, support seemed
to be abandoned and prices slumped
throughout. Amalgamated Copper
and United States Steel were the
central figures in the exciting scenes
of the day.
NEW YORK, December SIN Wall street
| today Amalgamated Copper fell by one-half
| point intervals J9Is to 80. Tennessee Coal
| dropped Az. United States Steel preferred
| 39s, Colorado Fuel ), and Missouri Pacific.
Louisville and Nashville, Pressed Steel Car,
| Steel Foundries preferred, Hide and
| Leather preferred. Virginia Iron and others.
points or over. Chicago Great Western
l
| margins by alarmed brokers precipitated
| heavy liquidation in all directions.
| The stock exchange gallery was crowded
not so much with out-of-town visitors
1t was with people having business in the
district who had heard of the markets de-
moralization and were curious to witness
the scene.
The greatest crowds on the floor were
around the Amalgamated Copper and u, s.
brokers rose in a confused din to the gall
lery. To this noise was added the ringing
of countless telephone bells in the private
booths of the brokers at the west end OF
the floor and the scurrying in every direc-
ton of scores of messengers. 1t was OBJ
served that many prominent brokers who
morning.
evidently deemed it advisable to handle
| their own business instead of distributing
orders. as is often done. Sentiment was
bearish from the outset Before the open
ing it was known that Boston had sent in
heavy selling orders in Amalgamated Cop
per; also that the leading wire or commits
sion houses were on the short side. From
all accounts the break in the first hour
was largely due to forced liquidation.
No Regard for Prices.
There is no doubt that many accounts
were thrown over without regard to
prices Boston was reported to have sold
over $4,000 shares of Copper in the first
few minutes, and the break caused by
these heavy offerings brought flood OF
selling orders in this and other stocks.
chiefly industrial, to all parts of the
room.
market. AS prices crumbled panic swept
the floor of the stock exchange.
Stocks were unloaded without heed to
the prices they would bring, and the drop
between sales extended in many cases
from 4 to over points. Colorado Fuel
was carried down liz, United States
Steel preferred, rs the common, 61s st.
Paul rs Brooklyn Transit, tx; Tennes-
see Coal, 9A; Missouri Pacific, 3h; Met
ropolitan Street Railway and Metropoli-
tan Securities over 5 points; Sugar. 02s;
Consolidated Gas as much; New Tobacco
preferred, 5h; Chesapeake and Ohio. As;
American Car, "; Reading As; Union
Pacific, Erie, Louisville and Nashville.
Southern Pacific and other active stocks,
points or over.
There were sudden and violent rallies
by intervals of a point or more. United
States Steel preferred and Amaigamated
recovered over = points, but liquidation
was constantly renewed on the rally, and
new low prices were made.
The panic was somewhat allayed during
the second hour of the market. and the
room bears who had been selling heedessly
on the break found it difficult to secure
stocks to cover their short contracts Nio-
lent rallies were the result. United States
Steel recovered 4s4, Colorado Fuel AZ, st.
Paul 4, Sugar United States Steel pre-
ferred, Missouri Pacific and Tennessee Coal
3L4 to 81 and Erie, the Metropolitan Street
Railway stocks. Reading, Union Pacific and
Amalgamated Copper "a to ,. There were
renewed breaks at some points, Union Pa
cific reCeding an extreme 5A, ST. LOUIS
Southwestern preferred and Lake Erie
Il nan4t rilfaG ont I'm
ued violent and erratic, rallies beng met
by fresh liquidation.
The restraint of the selling on the early
afternoon rally served to restore confidence
pretty fully and the market became active
and strong in the last hour. The losses In
the standard stocks were almost entirely
above last night. Even in the acutely weak
stocks of the morning the losses were re-
duced to moderate proportions
Conditions Improved in Afternoon.
The opening rate for call money was
per cent but the supply soon became ex-
hausted in the early afternoon, the rate ad-
vancing to 4Aa41a There was an abrupt
break in sterling exchange, which was
thought to reflect the higher money rate
here as well as London buying of our
stocks The excitement subsidized soon
after the first hour. when support was seen
in number of issues. particularly the
standard railway shares and the steel
stocks. Further Improvement was shown
by the entire list during the noon hour,
some stocks recovering to a fraction of the
preyious DAYS close. Business for the two
hours of the morning session aggregated
over ! 900 900 shares. and the tape was
from ten to fifteen minutes behind in the
recording of operations.
The fluctuation of prices became much
less erratic In the early afternoon and The
| do Of he
steadily upward. The recoverfes In the
Pacifics. trunk lines and some of the south
e-n stocks wiped out all but fraction OF
the losses. and there were rallies of five 10
eight points in Colorado Fuel Tennessee
Coal Amalgamaied Copper. the United
States Steel stocks and st. Paul. Selling
was resumed at this level. and there were
fresh recessions
The force of the early break came rs
surprise and proved that the public had
been in the market TO a much greater ex.