New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-21
A DECLINE IN STOCKS.
TIE EFFECT or LONDON FAILURES AND wAIl-si
RIMORe.

RUMoRs
Business opened quietly in Wall-st., yester-
day prices advancing from to 2. per cent Later III
the day however, kilograms from England announcing
the failure in the London Stock Exchange OF nrn
doing business for American Spectators and rumors OF
tho embarrassment Of the Pennsylvania Railroad COM
nanv were freely circulated. with depressing effect
Prices declined freely, the on the general ns'
beng from TO per Western Union opened AT o.
rose 10 5ol fell of s7 advanced TO 5si and sofa lao
In the day at 56a56 Lake Shore moved from g. to 69
declining 10 g. recovered TO 6f and finally cold at COZ
New-York Central sold at s9deOl asa a9OdSsi; Rock
Island at 92a93aeoi: Wabash at Ha45aI2i043i; and
Pacific Mail at $50 asa 992. Erie rose from AZ to "!'
| reacted 70 49,. and closed at 45s to 49,
The minors which brought about the decline were Of a
very alarming nature, but after careful examination
had been made they proved 10 have comparatively NJ
tie weight The failure the London Stock Exchange
was at first reported to be for sums ranging from ne
tween $4,000 and 100000 the bulk OF which would fa
upou Hew-York specuatOrs II appears that some time
ago one Klmber. formerly doing business III the New"
YORK stock market, went 10 London, where he FORMED
the partnership OF Kmber, Vivian Co., stock brokers
He received number OF American accounts, principally
from NewYo brokers and spectators, and Tor Tune
did successful business, among his principals beng
| Jaw Gould Osborn & Chaplin, Plume Van Embnrgb'
VIM T. Trayers and Others As they were on the "oear
side OF the market they gave numerous orders To re-
stocks short and always received prompt acknowledg
Inents from Kimber. Vivian Co., who reported the
execution OF their orders. The Eew-York accounts
showing fair profit the dealers then began 10 draw
on their London brokers, aud astonished to ma
that this firm Of Kimber Vivian Co had bought the
stocks sold for NewYork account, and had lost the
money which the New-York dealers supposed 10
have made AZ Kimber, Vivian Co. had very little
money they could honor the drafts Of their New
York customers and were obliged 10 fan.
INQUIRY OF Mr. Osborn Of the firm OF Osborn
! info
annoying from its circumstances, the failure OF kmoer
Vivian & Co was OF account a matter affecting
finance or the stock market
The New.York dealers had lost none Of their own
money only profits which, until the failure was au-
nounced they thought they had secured The total loss
by the failure would probably amount TO between &25OO
and R95OoO which would be very ttle when divided
among all the NewYOrk dealers who operated through
Kimber II was expected that this sum would be re-
duced by the assets OF the firm, which amounted to
about $1,000 Nj. Osborn explained that Kimber,
Vivian & Co. had been "double-banking" their New
York customers. That Is, when the latter ordered
stocks to be sold at London, Kimber, Vivian Co would
buy these stocks principally Erie for then own ae
count and while their New-YOrk correspondents were
"short" Kmber Vivian Il Co. would be "long."
The technical reader will understand that this tTansac
ton OF Kimber Vivian 4 Co. could be effected by sys
TEN OF cross entries their books aud stock might
not pass through their Office.
Tue rumoT IN relation 10 the IennsylVanla Railroad
Company arose II Is understood, from mistaken inter
probation OF telegram The stock OF this company Is
issued at par value $50 share and the Philade
phia stock Exchange IL sells at 81 share. In New
York where the par value Of stock Is usually 500 share
this Is known as half stock and it takes 200 shares to
make a fun delivery OF 100 shares IA New-iork As
matter Of the price is also doubled and instead
OF a the quotation in this market Is S. telegram with
these latter figures construed 10 mean IS, when In
reality the price which had been &C IN Philadelphia had
only declined 10 a.. The mistake caused great alarm
before discovered and coupled with the fact that
a prominent officer Of the Pennsylvania Company had
been borrowing largely assumed 10 mean that there
trouble III the company 1t Is understood, however
that the company has actual balance of large
amount on account Of loan Of 100000 negotiated
some time since
The statement OF Grnne & Co. has excited consider
able attention, every commenting on the amounts
due the firm by Messrs. Banker Augustus Schell aud
the Clark estate There general desire to ascer-
tain the Of stock held against these claims but
this had been withheld Intentionally doubt, from
the schedule as II wOuld have undoubtedly have told
more than the Vanderbilt party would care 10 have
known concerning their interests in the market Con
rary expectation, the trustees OF the Union Trust
Company did meet yesterday. hut will do 30 today