New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-03

in to-day and cancelled.
FAILURE OF GEORGE BIRD GRINNELL
& co.
TIE DEPRESSION OF THE VANDERBILT STOCKS
AvERTED by SUMMARY BANKRUPTCY PROCEED
INGs-THIRTY-THREE FIRMS PREVENTED BY An
INJUNCTION PROM DISCLOSING OF THE FIRMS
COLLATERAL sECURITIEs-ALIEGED COLLISION
WITH COUNTRY CUSTOMER.
Ever since the panic, the stock brokerage firm of
George Bird Grnnell q Co. of No. 81 Broad-st. have
been in trouble The members Of the firm have en-
deavored TO effect settlements since that time but
although many of their operations cleared,
there was still large number which could not be
settled. The house was long, of stocks for both
personal and customers accounts, and the liabilities
were supposed to be immense The firm sent no
tce, yesterday morning, to the Stock Exchange, in
forming that body that they unable to meet
their engagements 1t was naturally expected
that as the firm were largely "long" of stocks
particularly of the Vanderbilt features, such az
New-York Central. Lake Shore, Western Union
Union Pacific etc. large number of shares would
De thrown upon the market for their account by
sales on the floor Of the Exchange, if not under
the rule" Hence there was depression in the
prices of some of those stocks. Lake Shore, weak
ened by this new disaster the heels of Others like
the Trust Company suspension, fell per cent (;
Western Union fell 9 per cent; Union Pacific de-
clIned fraction and New-York Central was only
maintained by the persistent bidding of eight or ten
Vanderbilt brokers, who appeared determined TO
keep it above 90 But this depression of the whole
line of Vanderbilt shares except the principal stock
referred to- was of brief Duration for after the
announcement of Grinnell & Co.'s failure it was dis
covered that none of the shares which they held in
IL, ftnnv rLaf
Hesitation followed and the decline was arrested.
Then there was an inquiry as to their reasons for
not selling, and it was discovered TO the amazement
of the Board and the general indignation of the
street that Grinnell & Co. had been plunged into
bankruptcy and that an injunction had been issued
restraining all who held the shares of the firm as
collateral for money loaned from closing them out
under the rule Of the Exchange. The rage OF the
brokers az this discovery can better be imagined
than described. II was only less than that Of the
thirty three firms whom the injunction had been
served. The firm instantly accused OF collision
with the unknown country customer who had
thrown it into bankruptcy; 1t was found that the
Injunction was indeed several days old, and it
was asserted that it had been prepared with view
to this contingency the records were attempted to
be concealed by officers of the court notwithstand-
ing they were public documents; and these facts
created such q suspicion of the good taJth
of the firm and aroused such general IN
dignation that its members should have re-
sorted TO such measures to Save themselves that
there was a demand for their expulsion from the
Board and they were subsequently expelled. Later
the report prevailed that the firm failed solely to
break The force of the fall in the Vanderbilt special
ties and later still it was roundly asserted that the
Vanderbilt clique was at the bottom of the extraor
81 hat Ana Soho hqH
rected it.
Application to the members of the firm OF George
Bird Grinnell d Co. elected some general observa-
tons but none Of the important details which re-
lated to their failure and which occupied the aten
ton of "the street" J. c. Williams, the junior MEM
Der of the firm said that the house had been long
of stocks and had endured heavy strain for mar
gins from day to day, expecting that the market
would react and that they would be III position
TO continue business on their usual extensive scale
but they could not stand the pressure any longer
For some DAYS past threats had been made by
some of their creditors TO place them in bankruptcy
and on Wednesday evening they heard that meas
ures looking to that end would be taken. They
were served with papers, yesterday morning, in
bankrpt suit begun before Judge Blatchford of
the United States Court. They had therefore, been
compeled TO send their notice of suspension to the
Stock Exchange Mr.. Williams said the name OF
their creditor who was instrumental In the matter
was Henry Myers, from the interior Of the state
He denied that the firm was instrumental IN enyOn-
ing the sale of their securities by other dealers.
Geo Bird Grinnell said, later i'll the day. that the
report of the failure was unfortunately true. HIS
firm had not been able TO obtain the necessary money
and were therefore obliged 10 succumb. lie Qua not
know what were their assets or Liabilities, but he
said they would pay all they owed. lie did not
know whether they would resume business OF not.
THE FIRMS RESTRAINED FROM SELLING.
Applications elsewhere elected the information
that the order of bankruptcy wasssued on the com
plant of Henry Myers of Pine Plains, Dutchess
Comfy. n. Y. who affirmed that the firm were in
debted 10 him and refused to pay the balance that
was TO his credit. aud that they were insOlvent.
copv of the notice of injunction was served upon
each of the persons, firms, and corporations men
toned in the order, SO in number. Or these persons
the following were foreign and domestic bankers or
companies. generally known TO have been large
loaners of money to the firm of George Bird Grlnnei
& Co.. or to have received trust or othef deposits
for them:
United states Trust Co, Merchants Na'ohni p"uA'
Chemical National Bank, Nat BANK OF ooinh'eIoe'
Commercial Bank OF Albany, Maltlahd, fbeips @ w.
Cltzeps' Insurance CO.. Bell a smithers,
NJ O. Roberts Brown Bros. Co.,
National Trust Company, Notherspooh * 'o,
Pacific National Bank l. Won Hohnlah Oo''
Rroadyav National Rank Imp 4 Traders HAT. Bank.