The long predicted panic in the stock market came upon Wall Street yesterday, and like all other panics, it found market operators so completely unprepared for, and so utterly astounded and dumbfounded by it and this notwithstanding the many warnings put out that prices fairly melted away in the wild scramble of holders of stock to "stand from under."

The break started shortly before 1 o'clock, and when the market closed, some two hours later, quotations had slumped in the interval anywhere from 1 to 20 points. Many fortunes that had been made in the last six months by men who never before had a dollar, and who, encouraged by their great successes in the phenomenal market since Mr. McKinley's election had "pyramided" their accounts, were in some cases wholly wiped out as a result of the crash, and others so considerably reduced that little remains. Even some of the so-called "big" men have been badly hit, and there was talk also of serious trouble on the part of some brokerage houses.

So threatening, indeed, is the situation that conferences of important bankers and banking interests were held late last evening to discuss the matter and to consider ways and means to prevent a far-reaching financial catastrophe.

Hence is was that after the market's close last night there was gloom in many parts of the financial district, where for some months past only smiling faces have been seen. The youths and others, who, elated by their new-found fortunes, have been slapping one another on the back and half playfully, half in earnest, referred to themselves as "financiers," were chewing the "bitter cud" of despair and disaster, and wondering how it all happened. These are the men of whom before election Wall Street had never heard. Of many of them Wall Street will probably never again hear.

When the Break Came

The break itself came as out of a clear sky. All speculative eyes on the Street had in the early dealings been centered upon a further phenomenal rise in Northern Pacific common stock, which, the "corner" in it still operating, had jumped up by leaps and bounds to 180, as compared with Tuesday's close of 143 1/2- a gain of 70 full points in three days had then reacted to 145, only again to advance from that figure a dozen points or more, with $200 bid for it after the close of the market, and $70 a share paid for the use of it over night by the shorts. It was all so spectacular, all so interesting, all so phenomenal, that concerning the rest of the market the Street, generally, gave little serious heed and certainly saw little prospect or probability of the collapse that came so soon afterward.

Here and there some of the more conservative in the Street shook their heads ominously and declared that any such "corner" was always disastrous to the general market. But the rank and file paid no attention to these warnings and went blithely ahead buying stocks and sending them higher.

Of a sudden, Burlington stock, which had been more or less heavy all the morning, began to show unmistakable signs of weakness, while almost coincidently the Erie issues were depressed. The rank and file watched and wondered, and as they watched, the prices of the issues went lower still. Then in the general list, prices also began to fall. First it was St. Paul, then it was Missouri Pacific, and then it was Union Pacific. Finally the whole market was declining. Some holders of stocks not knowing the why and the wherefore of it and thinking it only one of the many ordinary reactions that have from time to time appeared in the market since election, "sat" on their stocks and looked for a recovery. Other holders, more timid if might be more conservative, of even less able to hold proceeded, however, to part with their holdings. Soon the contagion spread, the professional bears on the floor of the Exchange the while aiding in this by hammering the whole list.

Quotations thereupon began to break, not quarter or half points between sales, but one and two points. That settled it. The entire Street proceeded to sell. Where before the cry had been only. "Buy, buy, buy," it became, "Sell, sell, sell." Stocks were literally tumbled out sold without rhyme or without reason-anything "to get out."

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.

 
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