The Detroit times., 1911-09-22
MORGAN PARTY
BRACES MARKET
Hurries to Rescue After Steel and
Other Issues Are Hammered
By Bears.


NEW YORK. Sept. 22.--Alarmcd
over the raids on the stock market
growing out OF the rumors that tne
government planned to force reorgsn-
ization OF the United States Steel Cor
poration. j. p. Morgan. and the syndi.
cate OF bankers having International
connections, hurried to the rescue to-
day. Within the brief period OF half
an hour. they changed panic TO OBJ
.nmism. Not since the financial furry
OF 1907 has the power OF money been
so forcibly manifested on the floor or
the stock exchange.
The market opened demoralized.
The exchange was flooded with sell
ing orders, and with the opening, con-
ditions bordering on chaos prevailed
steel common dropped five points IN
10 minutes, Steel preferred fell like
lead and most OF the standard rat
way systems followed SUIT. The air
was, nlled with wild rumors anu re-
ports of impending failures. For the
first half hour evtn the old-timers on
the exchange were>inclined TO believe
that a panic was impending and could
not be averted.
Then the Morgan power began 20
evidence itself Brokers usually con-
sidered as representatives OF that firm
began buying the standard railway
shares. They were assisted by The
floor representatives OF the interna-
tional banking houses and they took
all offerings with n nonchalance that
indicated the millions behind them.
The selling movement was quickly
checked, not alone in railways but IN
all OF the industrials, including Steel.
BY noon the tone was buoyant and all
of the morning losses had been rc'
covered
For market purposes IL was ex-
planned that the crusade against Steel
was engineered by a noted bear oper-
ator, and II was semiofficially an
nounced that the big interests behind
the corporation have decided TO stand
pat. They will refuse to dissolve and
have the opinion of their eminent
counsel that a dissolution suit by the
government can be readily defeated.
n was stated by persons connected
with the management that the con-
pany had completed its plan to nght
any such action and would welcome IL
as giving the looked for chance 70 re-
velop in court testimony to onset the
report expected from the Stanley con-
gressiona; investigating committee
which is expected to be very dam
aging
Not since the days OF the 1907 finan-
cial panic has the stock exchange been
so evcited as today. Long before tho
time for the opening, the floor OF the
exchange was damned with members
most OF whom had commissions TO
execute. The news from London
showed that most OF the American
list was under pressure there, anc
this added to the apprehension.
AS on yesterday, Steel was the cen
| ter of attraction. Hardly a broker on
the floor but had selling orders In the
stock of the billion dollar combine
and the initial transactions reflected
stampede Of holders. There was
wide variation in the opening trans
actions, the crowd being so large tnat
the price ranged all the way from %
to IS ID in different parts. At the end
of tht first Is minutes, the price OF
the common stock of the big trust
had dropped TO So IA. or Ave points
below last nights close. For a tine
II seemed that panic would ensue
as Great Northern preferred dropped
4 points: Northern Pacific 5-S, and
Canadian Pacific IL on the belief
that the defeat OF reciprocity at yee-
terday's Canadian elections would ma
terially affect their earnings.