New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-24

in whom his partners profess 10 h"'o
had unlimited faith. But the speculatlons OF
the mysterious operators, though large anu
bold, were not successful, and for many
months before the failure the three accounts
owed the firm sums ranging from S'o,Ooo 10
800, 00O-a rather large sum, one would thihh'
considering the capital OF the concern
Nevertheless, such WAS the confidence reposeo
in their esteemed relative by father and son.
that they only occasionally asked him TO pro
cure more margin from his mythical
friends, and were quoted by his repeated
assurances that the money would soon be
ACKNOWLEDGEMENTS which always proved
delusiye.
Then came the panic. Stocks tumbied,
money became scarce, confidence was every
where shaken. But the Bank of the Common
wealth. fearing no harm at the hands OF us
former President, unhe5itatingly and goner-
ously continued to him the usual facilities and
certified his checks for a large amount. Never
was confidence less justified. Shortly after three
o'clock, on the 10Th of September last. the Pre-
sident of the bank was startled by the entrance
of the younger Haight, who informed HIM That
the firm of Edward Haight 81 Co. had stopped
payment and that the securities he had with
him were all he could offer to mako good their
bank balance. On investigation it was found
that the firm owed the bank, on account OF
checks certified for them, some $4,000 over and
above the value of the securities. When the Pre-
sdent went to the Office of the firm, he found
that Mr. Haight, sr., had gone home at his
usual hour, not thinking it worth his while,
70 OF f, ,ha hon
ton of the strange collapse Of the concern.
The other partners could give neither money
nor securities, and they soon went home with
ont making further efforts to relieve the bank.
Within the next few days, however, securities
were given to the bank enough to reduce the
debt to about $4,000.
The Committee reported that they could not
get from the firm sufficient and satisfactory
reasons for the deficit The checks certified
by the Bank of the Commonwealth were used
to pay of loans from other banks The secu-
rites in these loans consisted principally OF
commercial paper, such as notes, bills recelv-
able, &c. This paper was disposed Of strangely.
One lot of 100000 was given up for $4,000.
Another lot worth $4,000 brought but $4,000.
And even the $4,000 thus realized was not
given to the Bank of the Commonwealth, but
was placed in another bank and used, as the
mariners allege, to pay tier deposltors. Other
securities vanished in a similar manner, and
the confding bank had, apparently, the least
of their attention. The next day 1T closed ITS
doors, and it's suspension is directly chargeaDle
TO this Overdraft.
| In justification of their actions the partners
told the Committee that they confidently ex-
pected 100000 from Mr.. BurgOyne's friends
on the day of their suspension. But they did
not show that they had any more reason to
expect money from him then than at any other
time during the many months i'll which they
had vainly appealed to him for 1T. And now
it transpires that, excepting the bank Presi-
dent before alluded to, Mr. BurgOyne himself
was the only person interested IN the spec
ulative accounts In other words, these
two men owe the firm over S2OO0OO. But
what can be said in favor of Mr.. Haight and
his SOM No one would attempt to palliate
their crime il they were privy to the facts,
and none but very charitable friends will feel
disposed to excuse their incOmprehensible dull
ness if they were really deceived. Wall Street
is no place for such trusting dispositions.
we nave DctH tHuS cAPllOiV pON""oO W" VI"
not regard this az an unimpOrtant matter.
Considering the position and pretensons of
the firm and its small capital, considering that
their action caused the suspension of bank,
which in turn aggravated a panic already
great beyond precedent, and considering the
disclosures regarding the President of another
bank, we believe that this revelation Is
second in importance to none that has
been made during the present crisis. We
trust that we may not be again called upon
70 chronicle a similar case but if more exist
we hope they will be speedily brought to
light We shall have no better time than the
present for pricking bubbles
70