The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-05-18
COLLAPSED.
The Failure of n Prominent Banking Firm in
New YOrx-I.iabilities Over Million of Dol
Iars-InIensc Excitement in Wall Street.

Iars-InLeusc Excitement in Wall Street.
Saws the New York Tribune of this morning.
The unfortunate mania for gold speculation which
mas led the most Clearheaded nnancierS
into transactions which, to say the least OF them,
were extremely foo-hardy, yesterday caused the
downfall of an old and prominent commission house,
firm which has borne an enyiable reputation in
this city and abroad since 1885. Messrs. Schepeler
Co.. of No. 81 Wall street, when they adhered to their
legitimate business, were German bankers and eX-
pOrters OF petroleum. provisions and other products
their transactions being conducted on an immense
scale. But Of late they, in common with other
a fall in gold, trusting that the weekly
sales which the Secretary OF the
Treasury was expected to make, and other circum-
stances, would produce the effect they desired In
spite of their efforts and their seemingly wellfounded
expectations however, gold has been steadily rising
for several days past and at each rise Schepeler
Co have been forced to speculate heavily to cover
their former losses. 1t is said that some time since
they agreed to furnish certain parties with $40 600
OF gold at a specified price, expecting, of course,
that the causes above enumerated would combine to
lower the market. When gold commenced to rise
they considered that its imitation would only tenn
porary and still continued TO fulfl their contract.
Finally, however, the payment Of heavy margins
towards the last of and as per ccnt.-eXhausted
their eXchequer, and on Saturday they were forced
10 confess their inability to meet their obligations.
The amount OF their deficiency is alleged 10 be
s1,5OO,OoO
street at eight O'Clock yesternay morning. but so
well known was the firm, and so well established
their reputation for shrewdness and business tact,
that by many the rumor was regarded as clever
dodge" to affect the gold market. However, at the
hour when those struggling, hustlng, yelling masses
OF humanity, yclept the Gold and Stock Boards,
sembled al their rooms, it was demonstrated beyond
a doubt that the rumors were not only not un-
founded, but, strange TO say were not exaggerated
Immediately the excitement became intense, and
Schepeer & Co. e failure the intermnable theme
for every Wall street gossip for the balance OF the
day. II was somewhat amusing to note the amount
OF knowledge evinced regarding the downfallen firm
by certain parties who belong to the widely-dssem-
mated class OF "I-told-you-sos." They had fore
seen the crash and were clear OF il, and Rugged
themselves eXutngly as their escape from danger
which the widest imagination could scarcely suppose
them capable of encountering. But there was a
large class who said nothing, gave sign, but We're
vet largely involved by the failure Of this firm, whose
connection in this city, as well as i'm Europe, was
very extensive. or these many We're reported to
nave failed with the larger hrm but late yesterday
afternoon t was ascertained that all had paid up with
the exception of twO-Messrs. Schnelwind, Frank
Hertei of Broad street These firms were reported
to have failed, but there was nothing definite ascel-
tanned as TO them. ,,,
When the news OF the failure reached the Gold
Board gold which had previously nuctuated con
sderably on the strength of the early rumors, went
up from 14O1S to 142, fell again to ~, maintain
inc this figure until afternoon, when il rose TO 142
closing at 141S In the absence OF cable quotations.
which most usually cause the variations III the gold
market these fluctuations are attrlbuable solely tC
the failure of Messrs. Schepeler a 90. Ihere wa
much comment at the board on the absence OF tnest
ouotations but the members had probably forgotteI
that the Whtsuntide holidays are now occurring a.
London and Frankfort and that the business OF botl
Of the grand commercial centres is suspended
during their continuance
Messrs Schepeler a. Co., II is Thought, will not b
abe 10 meet a 1.-THE OF their heavy liabilities, as the
used an their available funds on saturday to meet
heavy foreign call.