The New York herald., 1876-10-07
A WALL STREET FAILURE.
ANOTHER OPERATOR ON THE SHORT SIDE
CRIPPLED.

ANOTHER OPERATOR ON THR SHORT SIDE
CRIPPLED.
Yesterday morning there perceptible on tho
Stock Exchange considerable ureasness among opera
tors when 1t discovered that the coal stocks
principally Delaware, Lackawanna and Western, and
New Jersey Central-wcrc hard to borrow, and that
cash stocks for immediate delivery worth from
onc-eghth to onequartcr OF ono per cent or
for day. This state OF affairs has generally been
tho signal for spectators to sell ''shor the inter-
probation being that the clique was-n the parance OF
the street-"squcezns'' the shorts, in order that
they could unload their holdings; in this instance,
however, 1t proved to be u iaacous theory, for
it was soon discovered that u prominent operator,
Mr.. Henry A. Patterson, in trouble, ana
that his contracts were in danger Of being closed
out under the rule OF the Stock Exchange.
such, indeed, proved to be tho fact About s, 900
shares OF the stock OF the two corporations named
closed out Tor account of Mr.. Patterson, the
larger portion being Delaware, Lackawanna aud West
ern, Now Jersey Central Western Union and 81
Paul preferred bringing up the rear Tho losses
on these operations were estimated at from $50, 200
10 So 600 great many private settlements were
made, and It WAS therefore almost impossible 10
lx exactly the amounts involved A member OF one
nrm, VINO were generally credited with beng the
heaviest losers stated tho writer that their losses
were greatly exarecrsted owing 10 ihe tact that they
tunate spoculator having considerably advanced,
that another stock coming IRON him at a low price
In conversation with largo dealer the HERALD in
quirer told that instead OF the failure OF Patterson
being
sTREEr,
II was In reality benefit, because a man trading
heavily he and leaving his DELIVERIES to be
the last moment parayzed The whole business o de-
livery IN the active stocks vi made artificial
scarcity, compelling small dealers to 20 into
markct and pay the premium demanded for the Of
cash stock. due bi Tor Instance, calling for the
delivery OF 200 shares OF New Jersey Central passed
througn nine different hands before IL reached the
party with whom the stock was to rest This but
one example OF many. and shows the complications
suing from action OF parties who trade heavily
in tho market without cash resources TO command
stock aud dependent solely their purchases Tor do
livery
Mr.. Patterson has been identified with some Of tho
largest operations the Stock Exchange during the
late years Of excitement and panic. He is esnabe
gentleman, and although his career has been attended
with many msfortunes by his ability and industry he
has becn enabled TO pay OIL over Sl00 600 OF debts Hc
Was q heavy gold operator in Boston during the war,
and has been identified within two years with Jay
Gould, In somo Of his (Gouid's) bold operations in
Union Pacific Railway and Western Union Telegraph
shares In Pacific Mail speculatons he always played
a prom ncnt part. and having strong physique. nc
companed by voice which IS marvellous for It's shr
penetration, he commanded attention and created
excitement the share In which he in the
habit OF operating equallsd only by the late George
Dickinson