New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-12
ALMOST A PANIC.

KENNEDY 4 Co.-JOHN f. TRACY AND W. l..
SCOTT FAIL TO MEET THEIR MARGINs-A RUMoR
THAT CAUSED DECINE OF lie PER CENT IN
DELAWARE AND HUDSON.
Wall Street was agitated yesterday morning
shortly after the opening Of Stock Exchange by the
announcement that II. Kennedy Co., brokers at No u
Broad-st, had suspended. The communication to the
President the Stock Exchange stated that Gin eonse-
qIcnce failure OF customers TO furnish us mar
ius we are compelled to suspend" At the office OF the
firm TRIBUNE reporter informed that the customers
referred 10 were Jonn f. Tracy, President OF the
Chicago, Rock Island aud Pacific Railroad, ana
w L. Scott one of the directors OF the
Canada Southern Railroad Mr.. Tracy, II was further
stated had tied up large sum OF money IN the eVateu
Railroad OF this city, aud the decline in stocks IN Wmch
he was heavily interested had been so grea: that ne was
unable TO respond the call for further margins II was
Thought however. that ne and Mr. Scott would ne ane
I'm few DAYS To their accounts good again. ana as
soon as this done the firm would DC able 10 pay
dollar for dollar. TIE members OF the firm were conn
dent the SUSPENSION would be only for short time
Tney had seen all outside persons to whom they were
indebted and had obtained their consent TO let the
accounts rest for the present Their indebtedness 10
members OF the stock Exchange not large but they
declined to give any figures.
The announcement Of the failure was followed Nv Il
rard decline in the price of Chicago ana NORTHWESTERN
md Chicago aud Rock Island stocks. IN bOh OF Which
the gentlemen above mentioned largely Interested
for some time that the price Of these stocks was sus
tanned almost entirely h. Messrs Kennedy Co. ana inc
persops for whom they were acting as brokers. North
western fell during the day 27tlo opening prize
u lsia at which 1t closed. Rock Island declined 3's
The founder Of the firm OF Kennedy Co. was the iate
James Kennedy formerly partner with Efas'uS C'IH-
ing Co OF Albany Harvey Kennedy is at present me
senior member the frm the company beng younger
brother The rn has done large business III the p'''
and has bone good reputation Neither Mr. Tracy MOI
Mr. scott could BE- found in the city YESTERDAY Nh
Tracy II was stated. sick in Phadelpha' al" ll'S
llcsen cmharrassmcnts reported TO DC dun 10 a
sickness which prevented his giving his usual attention
% his business II was understood that his Illness was
disease OF the brain.
Another r,por, was started little after O'Clock
which throw the street into intense excitement ana lea
many to believe hat great panic was imminent. The
r,port was 10 the effect the officers Of the Delaware
and Hudson Canal Company hid applied to one Oh 'he
cours in this city for the apo lment Of recei'er"-
The COMPANY. the rumOred action being al once Ih'c.
,reied As movement intended to fofcs'al
the application recently made ny MI Az
derson As the report came directly lIo"
4b & urt-bouse il was generally credited and Delaware
and Hudson dropped from 43l2 10 SO III very ie" nm
ues causing the most intense excitement TOT sOrt
time Oh the floor OF tie Exchange BROKERS ana DloAcN
clerks rushed wildly from their Offices 10 le LAc!H''
and b fore price could be estaDi!Sheu oI pI'Aoi
could make memorandum of his purchase OF sn' 'he
,,,aons had roppcd several points lower IN the con-
f,siou 6sputes repeatedly to the person VINO
had made the purchase, and IL was left 10 the toss oI
benny to decide The issue. Inquiry ut the once Oh Tue
tle company by TRIBUNE reporter eN'liea uie S'"''-
teu that there was no truth whatever in the report nor
I'm any other report of a similar character Later, pr.
ot,praut Vicc-Fresdent the company, app cared on
tn street a authorized official denial OF tne runor
Ticrc WAS then partial recovery III vac
ui.c OF the stock, which closed at li2 Nearly 'ooo
states had been sod III the mean Zine helo" 40 Inc
total sales day aggregated Overt 21'oOo shf't
about twOthjids Of whch changed ha-d> after Tie pro
,ulion Of the report that receiver had been applied
Tor.
gentleman, who from his knowledge oil the aInI'
OF the company able 10 speak WIN confidence
stated last evening that the report OF the mI'Seh
application for the appointment Of II receiver
came 10 him carly in the afternoon 50 dI''uF 'b"
nj the time ne had no reason to doubt its correctness
Later in the day it contraGict'd IL hought now"
ever tat tbs step only deferred Tor tht uir ana
that the necessary papers were already prepare" II
wa, MS Impression nat the delay was only for the pu
pose Of allowing tie officers to Vui themselves In IA pc
Simon 10 Gerry through the matter without loss 'o tu'1"
solves when the Application would be ih2dc could h"'
be forctold must De made soon or else 1t woEd De-
forstaled Dos the similar motion IN the case OF Anderson
against the company when woaid be reached upon Tue
calendar within the next two weeks.
large numhrr Of prominent brokers' gathered at me
Windsor Hore during the evening and the events OF the
day were freely DIS ,,sed. 1t the general impress
siou among them, especially among those VINO
were supposed to be most intimately acquainted
with tne recent transactions OF the Of
6cefs of the Delaware and Hudson aud Del
aware lawauna and Western companies. that the re-
port regarding the action Of he Delaware ana Hudson
officials was substantially true, and tia # application
had not already flied only because the officers
were not vet short much sOcA they desired to be
Ieiolc uaLuE The matter known
The following shows the extreme decline in the stocks
wIdca were chiefly affected by the depression IN the
street: ,..,..