The sun., 1878-10-16
TROUBLE IN WALL STREET.
uttRS co. GOING DOWN WIIHA CRASH
.>D MIXING An ASSIGNMENT

Il
III. startling story OF Jay eouid's FTrtner'
ptot TO Ruin Them -Beiden a Co.'S Reply |
usar Arrested and Committed to the
sh.,t6-. Custody who Lose by the Failure.
7, WAS thought in Wall street soon after
M, opcniug Of business yesterday, that another
Neter or Bonner rehypothecation scheme was
about TO be developed, and there was much ex-
ci,,n,ent and q general disposition to overhaul
.o,urities Rumor was busy with the names OF
sc,rea II brokers who were about to fail. and
saueral feeling Of distrust and insecurity pre-
,,ucA TIM, materially affected tho stock market
yust h,ioro noon the cloud burst and 1t was an
,,ur,cd that Haar Co. oi 35 Wall street were
unable 10 meet their engagements " In conse-
ouenso Of series II losses and misfortunes."
only n iew minutes before the announcement a
Nav street firm sent u check OF Haar 4 Co. for
,,eODo that they had received on the previous
dny after banking hours. to the City Bank for
cer,ifcation aud were informed that Haar Go.
ba1 mo funds" This news spread through
,be street ike q prairie fire. so that when the
formal announcement came II was rather coolly
received. I, was asserted as coming directly
from the ruined firm that their failure was due
t,the refusal Of Bclden 4 Co. Of 80 Broadway.
I, abide by certain orders to sell and buy given
them on the preceding evening The firm Of
Bsllen 4 Co. contains ut least two members that
figured largely in the Black Friday panic Of
1869 one being Jay Gould.
Mr. William L. Beden said that Haar h Co.
had received from his house large amount Of
securities for which they failed to render a
satisfactory settlement. we looked upon
them" ho continued as a solid. good house.
AMI placed implicit confidence in them. 1t hap
pened that We wanted to lend some stocks on
the Iuct' ani We intrusted them to Haar h
Co.. tho understanding being that they were to
lend them 10 other brokers Instead OF lending
our stocks they sold them outright and refused
% account TO Us for them. In fact they have
swndcd Us out Of much property. Our last
transaction with them was on Friday or Satur-
day last and | deny that we gave them any
orders i1r MonOay. Sec how absurd that would
be On sunday night Mr.. Haar told us through
his counsel ex-senator Gross. that his house
must fail on the next day. adding that he owed
us 100000. Now. would 1t not have been alb
surd Of US to give him orders for Monday when
W. knew that on that day he would he insol-
vent, He told US at the same time that he had
overdrawn his account at the City Bank t4G 900.
AMI yc, In the face Of this averment he wants
t. make tho street believe that we gave him
orderslnvolving many thousand dollars -
Before o'clock tho rush TO close out con-
tracts. trsScts WITH HaoE y Go; under aiHi the rule, rule
sale Of securities hy auction Drought out 1860
shares. of which : 200 were directly FOR the ac-
iSSirectly out q iGcir ,ransacti 6ns The direct i
.ales under the rule Tor their ACCOUNT, were;
Western Union. 100 New Jersey Central, 800
Helaware; Lackawanna and Western. and 700
JS 1S Hd %ssi4b M''sSB tsD The
i and Essox @ FiS! sh@rs s1%9 IcSSaS S %Sa ccq
ume Of stocks so suddenly and Unexpectedly
thrown upon the market. prices were fairly
letters to the EIchsnee we're William Heath 1
20. who closed out 800 shares OF Northwest; ;
G %sss sHS NIeSet % oe Sn9 non sSS TssifFn Pss,
Sias stokes. aud r. i Hoyt in addition to
The set,Icmsnts under N the rule, claims on be-
arranged Had all Of Haar Il Co.'s stock been
thrown upon the market in lump. the result
Their god oi which Haaf L Co held nearly or
quite So 100000 stood them in l0l'.. and the
sales and settlements were on the basis OF
Within an hour after the letter Of Haar 4 Co.
announcing their Inability 10 meet their oblga-
tions Belden Co. sent letter addressed TO the
stock Exehenge The board was called to or;
that its substance was Us follows:
We are informed there is rumor that lIssr Co say
S.lsf w@sh CIs.Is We s,s5wsId TsPgdia,sa In. We
n "a % @ sso ay ay amount s s sy yhs, %
rere executing orders Ior u. They have overdrawn
y caf ,esafns: Which Tsro in their hand: and when
Ne annot recover
Mr Moses Taylor. President OF the City Bank.
said that the overdrnft was tor small amount.
and the bank was fully secured From other
sources II learned that the oyerdraN was
about t46 900. and also that the bank was Sc
cured
A. soon as the failure was announced there
was rush for the office OF Haar X Co.. but not
one . the three members OF the firm was to be
Jund there. Later in the day the place was
GrG sod at the desE H. sad hn M
1aar had not been down. Kuehnemundt and
h@d SsP SSep p 1bsv in se moThng d Su he
he firm had made an ass ignment TO him, His
ETms was F. Myer. and he was the god clerk
ae wa moi prepared 10 make any statement. 1t
va suggested 10 him that the members OF the
iranssctons had been exceedingly irreeuiar.
hr Myer scoffcd at this; he was positive
.ha! they were not even keeping out Of the way
sher lh'erosts and those Of their creditors
A. the facts became known tho feeling among
NE Gernan bankers and brokers grew into one
positive tia, laar 4 Co. 5 transactions Oi Mon
.nd TIA, that firm had repuiiated thoir orders.
nr hhngenield, who was hurt more than any
a The S,,o eTqfers ,S empl2yei by Haar Co. said
re-! that was given him came from Belden & Co.
Could and Beden oe to enable them %S To- cover i'm
men.9 snort lines. One broker who was q loser
s,t shid tlat Gould and belden were short OF more
Notlhwestern than they could ever hope 10 cover
without handling some Of the stock In the mar
h't t'Tire. lie noticed that late on Monday the
p'Atl party mtdo large purchases. but they did
NJ buy any, he said. until Haar d Co. got
nod llaar Co.'S check for tl3 900. 1t was
f,Nrh 70 them on Monday Afternoon for some
TT,lA~arr Laekawanna and Western stock.
Nell messenger reached the City Bank q min
llr too late 10 have 1t certified. and when 1t was
o s69ds Be6re yas TilsThGa ths T@
hl time 10 make inquiries the failure OF