, 1873-10-03
4 VANDERBILT BROKER GOES UN-
DER,

Special Disuatch tu Tho Chicago Tribune.
NEW Yo1aK, Oct. 2.-Tho consequences Of tho
faiuro Of George Bird, Grinuolt l. Co., shocked
tho stroot this morning In an extraordinary
manner. Tho embarrassment Of tho firm waa
wofl known. Thoy had acted largely for tho
Vanderbilt clique, mud hold enormous blocks Of
Vanderbilt shares In Lako Shore, Western
Union. aud Now York Central included Many
thousands OF tloso were known to hnve boon
hypothecatcd At low prices during tic panic to
enablo the firm to get through. Tho closing Of
the stocls Exchange was effected to giyo fino
for This aud firms similarly situated to Hottle
md survive. Whom, therefore, tho Vico-prest-
deut Of tho Exchange, this morning, read tho no.
tico OF their failure, tho Board was not aaton-
lshed. but only a little depressed. Tho
except Now York Central. Tha was only 'lnp. maiI
!! mined BY persistent bidding by vandcrbita
EFFECT ON srocRs.
Lake Shore fell per cont, Western Union, 2 !;
Union Pacific, large fraction, aud would have
gono lowcr but for the discovery that nonc OF
Grlnnoll j. Co.'s shares were put up at auction,
or wore offered for snle at all. This puzzled the
Board aud street TIL II little before noon, when
eqao Sa a'Sfd baefng ehyS from tho nttos tm rn ana
II appcars that largo blocks Of tho lsharoa Of
which 0rinnoll l. CO. wore short had boon hy-
lQ-AGClLGu Will klll[S~tElC0 urlIl6 AB HGCuT1kY
for monoy advanced. Not only Ind tho Court
thrown the firm Into bankruptcy, but 1t had
ISSUED AN INJUNCTION
directed to these thrty-three holders of Grin-
nell's co1latorala, iorbdding thom to sell any
had about 1000 shares; +. n. sartshorno as
much L. 7. Hoyt 1900 eharos Scott,
Strong & Co., 1,400 shares, and many other
lko amounts, 90 roe that sao th9 aggregate rop-
order, of COURSE is to koop tho sharos on tho
market, and thus maintain tlo price at long ill.,
forest, until bulls can sotslc. It also
LOOKS UP S1.500,O00
In money belonging to these firms, and makes
money t!ghtor. Further, it makos people with
money tiinid about londing on such securities.
Tho point iB also raised, and tho opinion nd
yancod by lawyers, that the recess on Change
stockbrokors at tho discovery Of tho trick played
was unbounded. Griunell i Co. wore accused
Of colluaion with the complainant IN the auit and
tho stigation. Augustus scholl was chargod
with engineering the ache1no, and, In the vivid
suit appeared conspiracy to sustain the Van
rartnor. were denounced and finally
lsD1aNANrLY ExrELLEn FROM THE EXCHANGE.
Williams is the special partner. Horace Clarke,
who borrowed So00.000 from tho Union Trust
Company, md loailed It to Vanderbilt and his
clique to help Lake Shore, aud the unfortunate
Trust Company, Is ono Of the largest creditors
ITO tho Iesoefated Frtsa.l
New YonK, Oct. 2.-1ho suspension of George
Bird, Grnnel t. Co., bankers and brokers, Ia
announced. That firm is known as Vauderbilt'B
stockholders. The firm were SUCCESSORS of
George B. Grinnell & Co. This house las been
in oxistonco only month, Mr. George D. Grim
noll bong special partnorin the sum Of 100000.
They were largely Interested iu Lake Shore and
Western Union and it IL understood that their
failure is owing to tho heavy shrinkago in those
stocks which they are carrying. Tho 1ato 1Ioraco
I. Clarke was special partner III tho old house,
and it is said lint within n few dnyB, tho widow
of Mr.. Clarke Inns placed a large amount Of
securities in their hands to enable then, to 20
ON. but they wero too badly pressed by creditors
and obliged to close. The creditors Of tho firm
l,avo boon enjoiued, and the laws tedious delay
will probably lock up about II 600 shares Of
Lake Shore for ut 1oast three months, because
tho parties holding tleao shares for this FIRMS
account arc enjonod from aelline or dispoaing
in any way Of the stock i'll their possession, a.
though the Immediate effect Of this failure has
been to 1nako the market stronger, yot the in
junction on The holders Of collateral securities
will increase tho difficulty Of brokers in borrow
ing hereafter, and reuder buying on d margin
nearly impossible. Grinnell says the firm Gun
aud will pay every dollar, and TINT tho failure
will not affect otllor houses to any great extent.
It iB uncertain wLether the firm will resume or
not.