The Nevada County picayune., 1911-06-09

on Thursday morning, as Barr had 1 foreseen, the Suburban directors met. and reduced the dividend on tho com 1 panys stock from four to two per cent | On the floor of the Exchange, follow ing this announcement, an avalanche of traction stocks, loosencd from their mooringS by Barr. struck the market. and the entire group futtered toward ! lower figures like mammoth balloon ! desp0iled Of its gas.
 Barr was lowering over the ticker in his inner office mopping his face IS usual, when the announcement came of the Suburban dividend cut He scanned the tape until it printed off three point drop in the stock. and then clap 1 ping his hat on his head he made his way down Broad street to the offices of President Sehlimbinger Of the Sa- Lurban Trolley company. ! Once in the presence of that har- i assed German gentleman he came straight to the point
 Some clients Of our house, Nr SehIim-binger, have commissioned Us 10 try to get your holdings Of Suburb an Trolley. don't know that you care ! 10 sell, and 1 tried to tell them that I didn't think too much of the stock as a purchase. It's lower now. as 1 pre- dicted. than the figures they are will ing 10 pay you"
 Barr fumbled about in his pocket moment, and drew out a check
 Yes. You've got forty thousand shares of stock. It's deposited as col lateral with trust companies for loans amounting to exactly three million two ! hundred thousand dollars. The stock 1 is selling now, or was ten minutes ago, at sevcnty-nine, which makes your i forty thousand shares worth forty thousand dollars less than the amount of your loan. If the trust companies haven't already sold you out. because of your exhausted margin. on behalf of my clients I offer you this certified check for your equity over the three million two hundred thousand dollars you've borrowed" |"
 Barr put the little piece of paper in the trembling hand of Schlimbinger. The mans face lighted up with joy.
 It's one hundred and twenty thou sand dollars he said slowly.
 Yes, said Barr bitterly; twice too much. It's four dollars share above the market, but they would pay it"
 My brewery it again me saves aeh Gott-sei danks.' And quick tears welled to the eyes of this other Esau. who had so nearly despised his birth right for the red pottage of Suburban.
 He would have wept on the bosom of Barr had not the little man so hustled him through the process of signing pa pers and telephoning the anxious trust companies
 That evening when he had received reports from his brokers Barr found that the syndicate was now in posses sion of a little over seventy-seven thou sand five hundred shares of Suburban. This included the forty thousand shares from Schlimbinger and fifteen thousand shares his brokers had gar nered during the day. He sent off telegram to John, summoning him to New York and arranged to fill his place at Palm Beach.
 Then. as if to sponge the slate clean of sentiment. he called in two of his confidential brokers and arranged for a savage attack on the whole market.
 ''I want Suburban to go to seventy five by noon on Saturday" he said, with vicious snap. and l want you to get thirty thousand shares of the stock by then"
 When the Exchange opened on the following morning there was a we'll defined rumor on the floor that big interest" in Suburban was about to be cid out by trust company which had loaned him vast sums of money on he stock. The rumor gained birth as il went, and its notifications soon in cluded startling array of reports Of failures. defalcations and general crimes against the constituted order If things
 Almost the first transaction on the floor was a sale of one thousand shares uf Suburban at seventy eight, point under Thursdays closing price, and of three hundred, five hundred and one thpusand-share lots. which broke the price to seventy-siX before the end of the first hour The floor was convinced ef the truth of the story of drastic ae- ton by the trust company especially as the selling came fIom brokers Who often acted fer it.
 There was no way of telling that the tock apparently hurled haphazardjy 4t tho market simply passed from rafr's right hand to his open left through wash" sales b. brokers in his employ Even the brokers eE ployed did not know this, and the re-
 alt was a big break in the entire mar ket
 The tremendous selling, with the slump had its effect II brought forth Suburban stock from the hands of in- VPsforS and etpPuIatOrS who thor