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

stock or gold contracts with the house:
Olcott & Co., Plume Van Emhurrh'
J. n. Tford. ir., 4 Co., A.. NJ Ferris Bro,
J. II. Colgate Co., Mnsgrovo q co.
C. n. Peirce,
The first list, IL /. understood contained Che
name. Of those who had loaned call or fora spoci
fed time large sums of money collateral security
consisting principally of Lake Shore and Western
Union. IL will be observed that the two Trust
Companies Union and NATIONAL which have sus-
pended are largely involved. AZ the time Of the
failure of the Union Trust Company Il was an
nounccd that Mr.. Williams Of the firm Of George B
Grinnell 4 Co. had borrowed for his firm $4,000
or more the failure 10 return which seriously en-
barrassed the institution The second group oi
names il il understood includes those who had sold
stock 10 Crpnell a Co.. which the latter couid not
take.
COLLISION OPENLY CHARGED.
On the street the most intense feeling prevailed
and there were not wanting those who asserted that
the bankruptcy proceedings were fraudulent and
that there was collision between the finn Of Grim
nell & Co. and their complaining creditor
Myers. 1t was alleged that the object Of the firm
was TO secure a dishonorable extension Of time at
the risk of those who had dealt with them. Finding
that they were tottering, they should have sns-
pended some time ago but instead of doing so they
ayaibd themselves Of the three days extension
0rarted by the Stock Exchange, and by
collision with Myers applied to the courts
and obtained further extension until the
18th inst, aud an injunction restraining
their creditors from selling out their collaterals
or stocks under the rule' II stocks went MP they
would probably receive them, but If they went down
the bankruptcy proceedings would continue, and m
the mean time those who were holding this property
would not be allowed 20 realize In the market. The
result would be disastrous % the credit OF the Stock
Exchange, az capitalists, fearing that Others would
follow in the lead of these men. would refuse TO lend
money on stocks or bonds, inasmuch as they might
be enjoined and prevented from realizing although
they were liable 10. loss from instantaneous and
violent depreciation.
EXPULSION FROM THE STOCK EXCHANGE.
As it was known that there was to be a meeting of
the Governing Committee Of the Exchange in the
afternoon the action Of that body awaited with
considerable interest. As certain disputed contracts
Of George Bird Grnnell had been the subject of in-
vestigation and arbitration before the sub-Com-
mittee on Settlements previous days, and had
not been satisfactorily arranged, the Governing
Committee resolved to take the matter into
consideration and If possible 20 effect an
adjustment. A meeting was Therefore called
for the morning, but meantime proceedings
had been begun against George Bird
Grinnell 81 Co. On petition of Boyd a Vincent
of No. 80 Br0ad-st, who are among the creditors
named in the injunction, the Governing Committee
passed a resolution permitting them TO resort to
legal measures for self-protccion in the matter Of
the contracts in question The Committee then
adjourned until o'clock in the afternoon, when the
members of the firm Of George Bird Grinnel 4 Co
were summoned TO appear before them for exam
nation. II. G.. Chapman, President OF the Tx
change presided After a long and secret discus
SION the Governing Committee emerged from their
chamber, and Mr. Chapman and Secretary White
announced the following the result of their de-
liberatons:
Whereas @. p. Grinnell and j. {. Williams have re
fused to comply with the laws Of the New York stock
Exchange; therefore,
ResoIred That they be declared no longer members Of
this Association.
The members of the Exchange were not cOmmuni-
cative as to the discussion which led TO this result
but Mr. Chapman briefly stated that they had sum
moned Mr.. Grnnel and Mr.. Williams to answer to
the charges brought against then and they had de-
clined to do so. There is a rule of the Exchange
which requires that the members shall be bonnd by
its regulations and shall not embarrass its action by
legal proceedings in the courts. This rule it was
claimed. Grinnell & Co. had violated. Mr. Chapman
said that neither the Exchange nor its officers had
been enoined from closing out Grinnels trans
actions under the rule and if there had been any
applications to him. he Mr.. Chapman the other
officers would have executed the orders but such
orders were received.
The news of the expulsion Of MeSIs. Grnnell
and Williams was received with interest, and the
action of the Committee was generally approved
by the operators, who have been annoyed not only
by the course which they took, but have suffered
personal inconvenience from the distrust which
money lenders manifested in refusing to lend any
money on railroad securities, and i'll calling in loans
already made. One gentleman said he had three
loans called in on account of Grinnells action. 1t
is feared that some inconvenience will be expe-
rienced by those brokers who have bad contracts
loans with Grinnell inasmuch as they have viz
tually locked up" large portion of their capital
in this property which they were not allowed to
col