New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-03
WALI-ST. CRITICISMS.
VIEWS or :. T. RUSSELL. AUGUSTUS sCHElI~ AM
OTHERS

VIEWS or :. =. RUSSELL AUGUSTUS sCHElL AND
OTHERS.
= r. Russell, member Of the Governing
Committee and Chairman Of the Extra Committee on
settlcments stated TRIBUNE reporter last evening
That the latter Committee while III session on Wednes-
day discovered that the firm OF Geo b. Grnneli Co.
bso failed 60 cover their stocks ana being requested
Ia furnish securtg for settlement had refused 10 do
Tn, outstanding stock being carried for the firm in
VOWED very amount and great number OF firms
were carving IT, among them some OF the largest and
most responsible in Wall-st Musgavc Co. and
How'd Vincent Il Co. held very large claims
O. Gould YOU venture rough estimate Of the az
creete amount of these claims A. No. could not.
can say however, il very heavy amount In fact,
The transactions of that house involved IN the present
proceedings were among the largest on the street
O. What seems to he the feeling IN the street regard
ing the bankruptcy proceedings taken by GriinelI Il
CO.. A. There Is utmost Indignation expressed. 1t
war az Unprecedented transaction Understand that
DO not LAY Gruue GO. were parties before the fact
70 the injunction and bankruptcy process but that
seemed 70 nc the opinion 10 the Board
L. Did not the Governing COMMITTEES, who expelled
Them think they were guilty A. The proceedings OF
The Governing Committee secret, but You may draw
Your own Inference from the facts already punished
thar Grune and his partner, Williams were expelled
frou The Board by the unanimous vote OF the Commit
fee after they had appeared before 1t and given their
evidence regarding the transaction
a Tho firm WAS known 20 be verging insolvency
for several days mott A. II became pretty gen
orally understood think, that they had not made good
their margins and there was apprehension, in
consequence that those whom the firm were owing
would throw stocks the market, and by causing
general fright and disrust operators, start us
all Of again on another panic. But the injunction has
prevented that for people carrying stock for Grinne
20 cannot sell or operate their stocks at ali, uDder
pain of action for contempt OF court
q IL not this tying Of 80 great an amount OF stocks
likely TO cause distresst A. 1t probable Doubt
lase those carrying Grinnels stocks have borrowed
money on ihem and operated with them never imagin
ing that such a blow this could fall, and consequently
their hands are tied, and suppose, under the srict
letter OF the law, they neither proceed IN their
operations nor withdraw
q undey tho bylaws OF the stock Board, IT would
upear that thOse who belong 10 the Board cannot de
tcnd themselves % the cOurtsi A. There is bylaw
that settlements must be adjusted under the rules OF
the Stock Exchange. and This was the bylaw GrinneD
A. Co are charged with violating; but resolution was
passed to-day by the Governing Committee renewing an
those enioDed from the restrictions Of the law That
OF course necessary to permit them TO do'end 'he
ease in court.
n We're Grinnell a Co. q Vanderbilt housed" 4.
be were called ~ on the street. but there seems to
have been no reason Il beyond the fact that Horace
r. Clark used 10 special partner IN H. OF rather III
under the name and composed oi TWO Of 'he
present me bers do not think II at all pfobabe nov"
ever that Commodore vanderDiit had anything what
ever 10 do with this Transaction.
Augustus scber, yice-Presdent Of the Union Trust
Company told TRIBUNE reporter that he knew nothing
Of the injunction in the Of George Bird Crunch
Co except what he had learned from the evening news
paper and II copy had been served 90 the Union
Trust Company he had not heard OF il. lie ala not
believe that Commodore Vanderbilt had any hand IN The
proceedings knew anything of them. lie Thought
the bankruptcy was involuntary and had been forced
upon the firm by OF their creditors who had also
obtained tie injunction. lie had supposed the house
Vas going IhEoOgq ~ right AID could D9t conceive Of