New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-15
A WALL-ST. FLUTTER.


SUSPENSION OF KENYON, cox co.-nEIE Ne
DoRsEMENrs FOR THE CANADA SOUTHERN RAIL
RoAD-RUMORs OF THE STREET.
A series of sensations in Wall-st. cnmi-
mated ON Saturday in the failure Of Of the most
proIninent stock brokerage and tic temporary
depression OF the stock market The house ~ question
was known as Kenyon, Cox & 60. OF No. 81 Wats, and
was one OF the Of the old house OF Robinson
Cox & co. what gave special sisnihc@nce 10
the failure and caused ior u' "me
great excitement was the fact that Dan'l
Drew, the central figure If thousand stock tpecnla-
tons was the special partner Of the firm, having m
vested capital the extent OF at least 100000 spcu-
aton was rife TO the causes OF the aiotc nut ihe
members Of the firm not communicative as I" he
details. II ascertaned, however that speculation
the Stock Exchange was not the primary
cause OF the failure Like Messrs. Fran
els skddy and Sheppard Candy, the firm Of
Kenyon, Cox & Co. had engaged in railroad building 10
extent beyond their available means. Tue rn we're
recognised the financial agency OF the Cdnda S"nh
Railway aud having taken a large interest mt
from its inception extended their liabilities by ndors-
ing It's paper for construction purposes. This paper
has been Endorsed by Kenyon, Cox and DANIEL
Drew, individually aud by Kenyon. Cox Co.
Until last Monday Messrs Kenyon, Cox Co.. and
others identified with the Canada Railroad Company
expected TO place "a large amount Of bonds with the
other holders IN London, but that day cable dis
patch received declining the purchase. large
part OF this construction paper about 10 fan Que
and having the requisite funds wherevIth 10 meet
1t, the firm resolved THAI IL would make virtue of
ssity and suspend once that justice might be
done 10 all concerned.
MR.. DREw's POSSIBLE POINTS.
Throughout the street, however, 1t generally nm
the failure Of the firm due to charac
teristc treatment by their partner, Daniel Drew. IL
was generally suspected that short" OF stocks,
aud that it was part Of his scheme TO allow mis-
house to fail in order u depres prices II Is OF course,
difficult to ascertain his particular interests but the
failure Of the house, taken in connection with the sup
position that it was long" Of Toledo and Wabash and
Canton Company, and the fact, TOO. that
determined raid had been made On
these stocks last week by Mr. Drew. lead many
to believe that he bearing" those securities, II not
the general list Statements were In circulation to the
effect that the house had never been really strong
it reported, since the famous NORTHWEST corner
Some before the corner" Daniel Drew and Henry
n Smith went largely short" of the stock This fact
having come 10 the knowledge of Jay Gould and
the late Horace +. Clark they applied the
requisite pressure and forced settlement.
II is alleged that Notwithstanding the fact that Mr..
Drew borrowed large quantity OF stock from the
widow Of an official OF the Chicago ana Northwestern
Railroad he also had to pay large amount III cash.
His operations been conducted through his brokers
and partners. Kenyon, Cox Co.. who were members or
the stock Exchange As the OF this body bind
ing the brokers who members OF H. Kenyon Cox X
Co. were Obliged to pay this difference. which amounted
to hundreds OF thousands OF dollars THIS sum, II II re.
ported has been repaid by Mr.. Drew. and IL Is
said partly for their weakness When ques-
toned Mr.. Cox said that the Canada Southern owes
25OO and has 900 Of first mortgage bonds Of It's
own and connecting roads. He said there foun-
dation for the that Mr.. Drew connlyed 1t the
suspension OF the firm. Mr. Drew had acted fairly IN
the matter. and il he had foreseen the difficulty
three weeks ago he would have saved the firm by
converting some Of his into cash. Notes amount
ing to ST. Of the Canada Southern bearing the im
dorsement Of Mr. Cox and Mr.. Drew viii mature within
thirty days. Mr.. Cox said he believed every creditor
would obtain 100 cents the dollar Ar Cox was sat
shed that the wealthy stockholders Interested in the
railroad would be willing 10 make sacrifices FOR the ben
eft of the poorer Stockholders and would eventually
make the project successful.
Mt Drew had not been down town for some lime. hut
was nc his residence. reported tina: he 81 h. and
declined to the subject OF the failure II
stalled however, that he RETAINED igol1 assisting me
irm under the instructions of h5 lawyer, VINO adVied
him to stop Immediately order that he migat learn Tie
exact condition OF affairs.
THE CANADA SOUTHERN RAILWAY.
The Canada Southern Railway. which has been brought
so suddenly into prominence, extends from Fo- Ere,
Canada, 10 Amhcrsburg, Canada Ton the DtrJt bAtD'
distance of 229 miles, with branches rom ST. Thomas
to Mooretown, and from Fort Erie to Ga" Suspension
Bridge, IS miles, making "A total OF 81 niles. lie
directors are Milton COurtrght, william l. scott, OF
Eriet Penn; Sidney Dillon, Daniel Drew, Benjamin
f. Ham, John Ross OF New-York, william 4. Thomson
OF Queenstown, Canada Johu f. Tracy OF Chicago aud
o. S. Chapman OF Canton Mass. Including JanIary IN
tcrcst Of about 0OOO currency, the Canada Southern
has liabilities OF s2JOoOOO, and owns So0o0 first
mortgage bonds namely, sl.O00!0O0 CANADA Southern
6r.ts SlOOOOO0 Chicago ana Canada Southern hrsts,
100000 Erie and Niagara first and ONLY mortgage. and
$50 900 Detroit River Junction and Bridge COmpanys
frsis
reporter called Milton COPYRIGHT, the President,
and asked for Information concerning the road and the
failure OF Kenyon, Cox & Co. Mr. C0urtIight said that
the firm had Endorsed OF the compaLys paper but
falling 10 obtain funds as anticipated. had deemed Il
wiser TO suspend Immediately rather than hold on aud
perhaps do injustice OF tine cred
itors The firm had sufficient funds TO meet
the note which fell due Saturday, but
for the reasons given did not pay H. Mr. COPYRIGHT
characterized the suspension as very unfortunate
Affair." and said that should not have occurred. The
failure WAS attributable, he said, 70 Mr.. Drew who
might have prevented it. If lie had desired
list OF the assets AMI liabilities could not be OBJ
famed II Is understood that reorganization OF the
BOARD OF Directors viii probably take place. and that
new men will enter upon administration of it, affairs
II ia expected that kenyon Cox Co. viii resume bus
nass again and that effect Of the suspension Will be
only temporary.
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