The Affected Stocks
And so it was that every prominent stock on the list
broke badly with the one conspicuous exception of
Northern Pacific, which held its head so well above the
storm that at the close of the day it showed a net
advance of 16 1/2 points. In contrast, St. Paul sold
down from the high figure 20 points, and closed with a
net loss of 15 1/2. Union Pacific from its high figure,
dropped 17 1/2 points and closed for a net loss of 9 3/4
points. Missouri Pacific broke 14 1/2 points, closing
with a net decline of 8 1/2. Amalgamated Copper broke
over 12 points; Sugar, 7; Atchison, 8; United States
Steel, 7; and the preferred 12; Pullman Palace Car on
one sale of 100 shares, 11 1/4, and many other
conspicuous stocks from 3 to 5 points.
The break, indeed, was the biggest single-day general
break the Street has seen since 1893-greater even, so
far as the general list is concerned, than the decline
following the death of Roswell P. Flower. When it was in
progress the scene on the floor was one of the wildest
excitement. The mad struggle to buy and to sell Northern
Pacific stock at the opening had been startling enough;
that in the late afternoon was unparalleled in recent
years. Brokers acted as insane men. Men, rational and
responsible, fairly fought with one another in the
execution of their orders. Big men lightly threw little
men aside, and the little men, fairly crying with
indignation, jumped anew into the fray-using hands,
arms, elbows, feet-anything to gain their point.
And, all the while, there was such yelling and shouting
as had not been heard even on the recent "wildest" days
in the street. Stocks were going down points at a time,
and a second's delay might mean thousands of dollars.
To the spectators in the distant gallery of the Produce
Exchange it was something incomprehensible, almost,
demoniac- this struggle, this Babel of voices, these
wild-eyed excited brokers, selling and buying, buying
and selling. But to the brokers themselves it was
serious business indeed. Fortunes were in their hands in
trust for their customers who watched, eager-eyed, in
the brokerage offices, the pulsating of the tickers as
they told what was being done on the floor-as they
ticked out how fortunes, easily made, being more easily
lost.
Northern Pacific Corner
As for the market itself, the rise in Northern Pacific
being the opening feature, comes logically first. And
such a rise it was, proving beyond all question that the
stock was actually cornered. On the day previous it had
closed at 143 1/2, this marking a net gain in two days
of no fewer than 33 1/2 points, the stock at the same
time commanding a premium of 7 per cent over night.
Yesterday it opened up at 155, on transactions involving
2,000 shares a gain of 12 1/2 points, and then fairly
jumped up to 180. From there it declined to 145, only
later to go to 167, and to close at 160, a net gain of
16 1/2 points on dealings in 50,000 shares.
Some idea of the wonderful fluctuations in the stock may
be obtained from the following records of transactions
for the first half hour of business: 2,000. 155; 300,
159; 500, 160; 1,000, 163: 2,000, 170; 1,000, 175;
2,000, 180; 1,000, 175; 300, 173; 1,000. 175; 500, 175;
1,000, 170; 100, 168; 500, 160; 100, 155; 200, 153; 400,
153; 300, 150; 500, 155; 300, 151; 500, 150; 100, 132;
100, 150; 100, 154. (cash:) 200, 153; 100, 155; (cash;)
100, 153; 200, 150; 200, 153; 300, 148; 500, 150; 300,
150; 200, 149; 300, 149; 200, 148; 100, 152, (cash;)
100, 149; 100, 155, (cash;) 500, 150; 400, 150; 100,
149; 200, 140; 100, 148; 300, 146; 200, 145; 100, 145;
100, 150.
What perhaps, was the remarkable part of this was that
at the time the stock was selling here at these figures,
it was quoted in London some 30 points lower, the market
there being described as chaotic, and with declines all
through the list. Arbitraging, however that is buying at
the low figures in London and selling at the high
figures here was impossible. London operators refusing
to take orders.
At the opening here the first buying was by Isidor
Wormser, who was credited with taking 10,000 shares of
the stock. James Whitely of Prince & Whitely also bought
a large block while Eddie Norton of Street & Norton, who
on Monday bought fully 200,000 shares of the stock, also
took another line yesterday. After the first half hour
there was comparatively little trading in the security,
and the rumor went about that there had been a private
settlement with the cornered shorts. This generally was
not credited and was effectually refuted when, after the
close of business $200 was bid for the stock and in the
loan crowd it commanded a premium of 70 per cent. Edward
Norton having called in 125,000 shares which he had
previously lent. That is to say, for the privilege of
borrowing 100 shares of the stock over night, a short
would have to pay $7,000. Adding this $70 to the selling
price of the stock at the close, it shows exactly $200
for a stock which last June was selling at $48 a share,
and several years ago was kicking around at $2.50 a
share.
[END OF ARTICLE]
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