New-York tribune., 1871-06-22
A CRASH IN WALL-ST.

MRNT-MANY FAILURES-WO Bib
sCHEME-THE FLUTTERING OF THE VICTIMS.
A storm burst over Wall-st. yesterday, which
FOR while eoualed that OF the celebrated Black Friday
in which Messrs Fisk and Gould figured with such un
pleasinR prominence OF the most gigantic speeua
ons which has been entered into for some time burst
like sky-rocket, and was tho more usas-
irons In Its results that Its break up was
looked for In entirely opposite direction.
About the lat of April combination was Formed
TO force up the price Of Rock Island stock ana GET
"corner on the bears The principal men In the Clique
were William e. Woodward and John +. Tracey, the
President of the Railroad Starting from the price OF l2
they gradually bought up Rock Island STOCK t yesler
day morning it sold at lS0 The capital STOCK Oh inc
Company amounts to s7ooO00o In 1OOO shares OF sVV
each. on Tuesday afternoon Mr. woodward had all MS
arrangements completed for making an enormous sum
of money He and his clique had actually bought 2SVO
shares-1Os 900 more than have been issued Had
all gone right the dealers who have sold short wowu
have been at their mercy, and would nave Deeh con
PEELED TO submit to any terms they ohoSe 10
offer. But there is "many a slip tween INC
cup and the lip" as Mr.. Woodward found to his cost
All day Tuesday he had taken every share that was
offered and toward the afternoon he became little
suspicOus of the sellers He under engagement 10
put up large amount Of margin the following VeSer-
day. morning The clique were TO furnish him Wuh
81 100000 to pay this margin On Iue'uay
evening In company his brokers' Scott Strong OF
Broad-s visited of the leaders of the Clique
when found, his horror and amazement that the
81 100000 would not be forthcoming in the morning
There was no help for it the bubble must burst
So little was this anticipated that at tho opening
of the Exchange yesterday morning Rock Island STOCK
was quoted 1901 As soon the trouble was known
scene Of ndescribable confusion ensued Inevitable
ruin stared dozens Of men in the face. many others
had to contemplate heavy losses and to get out or the
mess as best they could The shouting. yelling,
and rushing about was moro characteristic OF iunatcs
of said business One man alone seemed cOol
and colected-AIr Wheeock, the VicoPresdent OF the
Stock Exchange. Pressed as no was on all sides-men
calling and shouting to him, messengers bringing him
notes and kilograms every minute-he never Tor an
instant lost his HIS sefcontrol and behavior
throughout the trying were the general theme OF
commendatiOn after the Board was called several
members officially informed the President that they
must fail and desired that their stock might be sold out
under the rule About sOOOO of stock sold out in
this way lowering the market price from 1904 to ITO In
| less than two hours.
Nine of the dealers, exclusive OF Mr. woodward were
publicly announced failed. Mr. Woodward Will un-
doubtedly fail In fact he has virtually failed for ore
OF the firms already declared failed informed the Vice
President that they unable to fulfill their engage
ments In consequence OF this default The failures al
ready officially made public include Robert waller
Henry A. Dennison, James Austin, Dater Timpson,
j. W. Gillespie Earle SalstODstall, W. A. Bowron W.
+. Tunis & Co., and A. g. Wood. More failures are an
| ticipated to-day Scott g. Strong, Mr.. Woodwards
brokers' fortunately not affected by the catastrophe
Much sympathy is expressed for Mr. Woodward, who, II
is asserted thrown by or more OF his assO
cates who have advanced him the sOoOOO yes
terday morning 1t is boldly asserted that they had
privately sold short" large amounts of the very stock
which supposed he buying their joint account
The general market was not much affected by the
collapse the Rock Island pool might have been ex-
pected. With the exception of Northwestern Common
which fell five per cent the report that some Of the
| failed firms were interested in it, the average
fall stocks did not exceed II per cent. There was
much anxiety the probable Of events to-day
of the prominent dealers expressing great dsrust
as to the reality strength OF the market and
serting that the mischief far from over This Is not
the first occasion which Mr.. Woodward has been in
trouble but he paid all his debts with interest in so hon
orable a 10 render him popular among his
| fellow-brOkers.
The areas of the Fifth Avenue Hotel, the favore
ing resort Of many brokers' thronged early last
night On every side groups of brokers theorzng
as O the causes of the break in the Rock Island cor
ner" reciting circumstances which had within
the observation of in connection with the whole
| affair." Among them were many veterans of Wall-st
whose faces rarely at this resort There was
marked contrast between the expressions OF these foxy
| elders and those OF the glib and excited
younger brokers. The latter dscoursed of Woodwards
bold ATTEMPT as something nearly dcc9ihpnshea' shi i
it had succeeded. The Others, however shook
reckless speculation, and curbed the more
! sanguine theorists who dwelt with interest
what ntight have been done by the pool" if-and if.
said by that the true secret OF the failure
was that woodward mad lost his head" at the
| critical moment, Just he had on a similar pre-.
vous occasion. Others said, This is the revenge of
Gould and Fisk-WOodward went back on them in the
successors Of the old firm Smith, Gould Martin. with
| VIM. NJ. Tweed, jay Gould, and Henry NJ Smith as
| special partners When Woodward falteTed, yes
! terday morning, this firm rushed In and glnt-
stock until he was runed 1t happens that the brokers
| who crushed III Woodward's overthrow are,
almost without exception, those who failed under his
! lead on Black Friday They managed to recover
their places by paying 10 TO per cent % ON
now repeat the operation. Woodward, It is
said stopped payment matter Of course, long before
he had seriously impaired his capital which has been
known be large, and will without much delay effect
with his creditors and be prepared again Tor
large specuiaons The victims who really suffer most
| by the transaction appear 10 be the outsiders,
| who rashy ventured among unknown rocks ana quick
sands. In numerous cases men who had as they be-
evcd won fortunes by selling Rock Island on Tuesday
the amount of nearly double their supposed gains
The brokers who appear to be In "highest feather
are those who shrewdy avoided selling 10 those known
TO he connected with the pool one OF then naFlng
actually cOntrived to dispose Of the whole, at
nearly the highest rates, TO buyers who were
not driven into reputation, and he thus saved
himself and his customers from loss. The best
upon the whole to found in the fact that members of
tie pool applied again and again 10 leading banking
houses 10 5000 10000 more shares OF stock
carried for them; that the request was refused,
except upon the condition that such margin should
he put up beyond their meaDs and therefore the
load assumed By houses which were ridicnonsy ln
adequate TO the undertaking and which had little "
lose and everything to gain"