New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-20
TIE SUSPENSION OF s. NJ. MILLS g. &C

excitement yesterday afternoon by the OF
the suspension OF 5. NJ Mills Co.. bankers and brokers
! at No. 81 Broadway and No. Exchange Court. Tho
usual formal statement from the firm to the
| effect that 1t unable meet its obi
cations, was read from the Exchange
little before o'clock. The announcement was followed
by stampede OF the brokers that the floor Of
! the Exchange who rushed 10 their various Offices in
tho vicinity 10 make known the failure and learn their
standing with the suspended house. For few minutes
WALL New. and Broadss.. in the vicinity OF the Ex
change, presenteda scene OF great buste movement,
and confusion.
Quiet was soon restored when the OF the excite
mcnt became generally known throughout the brokers'
Offices and then began the buying in under the rule
of small lots Of Lake shore. Western Unon Delaware,
Laclawanna and Western and ether stocks OF which TIE
suspended firm was short" The total amount how
ever. that changed hands In this way comparatively
hght Mr. Mills. as 1t was subsequently learned
notice early In the morning 10 most Of the
brokers with whom ne had open accounts contracts
including all who had sold large amounts his account
that he would be obliged TO suspend during the day. and
that they should therefore, protect themselves without
delay The market strong during the day prior TO
the public announcement OF the suspension, under the
Influence OF the purchases made by these brokers' Not
knowing what had been DONE many persons expressed
surprise that the market did not continue to advance
for short time after the failure became
known until they learned that Of the short
counts had been previously covered above stated.
The shares bought in under the rule 500 West
Union 500 Lake shore. 400 Chicago, Milwaukee aud IT.
Paul. 400 Delaware, Lackawanna and Western. 900 Del
aware and Hudson, 600 Morris aud Essex. and 200
Pacific Mail.
history or THE FIRM.
Mr. Mi's has been prominent both n commission
br, kcr and SPECTATOR since about 1s62 At time
he intimately connected with the then leading lrm
Of l. ". Jerome Co., later jerome. Riggs Co. After
wards he did large business for W. s Woodward who
prominent operator at the time following the varying
fortunes 81 that Spectator But In Mr. woodward's
latest operaton-the attempt "corncr" the stock OF
the Chicago Rock Island and Pacific Railroad In June.
l571MT. Mnls found the opposite side, heavily
short Of the stock. and IN Mr. WoOdwards disastrous
failure he realized large profit lie then visited Eur
rope, and absent about year After returning lie
again entered the list OF spectators and fought the
stockoe reo IN Pacific Mall to 1913 with such energy
persistence that his financial condition seriously
affected.
IL March 1873. tie firm Of s. ". Mls & Co. was
formed. with George u. steyuor special partner.
aIr. NILS having obiucd no litto reputation rs sk:
ful manipulation OF the stock market The fam be-
the principal and most trusted 81 Jay Gould's
hroacrs. The first operation oi the firm for Mr..
Gould the manipulation Of the market FOR
Chicago and Northwest stock In June and
July, 1873 At that time Northwest had not
recovered from the sacuating effects 81 Tic OF
November, 1872, IN which Mr.. Gould heavily inter
the soc; On lis hands nuus tie corner, the stock
rose to $50. Mcs.rs. Mills & Co. succeeded In selling
all except about coo shares of Mr. Goulds proper
ton Of TIE pool, before the panic at prices above Go
Simultaneously with ac selling 81 tae Northwest stock
the lrn also engaged in selling cat III Gou.da
gold, of which Lc htld about 57O,0ooOoo
The rm passed throu 4, the panic OF ISIS Unscathed
Daring the panic the Northwest stocli'cincd 10 81
under The sales a. the remaining members II the "coycr
ing pool, and MT. Gould the principal II not The
only bnycr. THIS stock <. ~ Mills ~ Co. sold out for
Mr. Could at from - 10 GO 10 5 In the Spring oilH14
The firm Was largely concerned III tue pug !
chase OF Union Pacific stock, for Ir Gould, |
from 20 up to 80. Mr.. Mills. with thorough |
knowledge OF what going o., ana !
Of the prospective advance In the pIc OF the Stock
again became large Spectator his onn account aad
made extensive purchases Of Union Pacific stock for |
himself The price OF the stock advanced q 80, and M
Mills realized u handsome fortune.
q NJ Mills & Co. also engaged az different times
by NJ Gould for the manipulation %; Erie, Pacific Nail
and other stocks. The result OF these Transactions WAS
generally favorable FOR their primo tal. Having accmt
Lated much wealth. M Mills Ia February 1876 sniledi0r
Europe in his Yacht Vcsta. lie returned to New-iork !
in Midsummer Of the year. Prices OF stocks then
much lower than when he went away; the railways
were engaged In ercc traffic and large shoit
interest In tho stock market was apparent 1t was not
long before Mr. NILS made himself felt power IN the
Exchange. lie purchascl stocks agtiGot the cuient
ndomitable rryouiioG ho turned the market, aud nd |
vanced rrccs on an average 10 per cent Bat In
February and March Of 1877, the dag Of settlement
came, and Mr.. Mills qUidatcd with tie loss OF the |
greater part OF his His losses at that Time it is
understood exceeded $500 900. In the meantime there
was a disagreement between Mr.. Mills and Nh Gould, !
the latter closed hts account with :. ". Mills Co.
HEAVILY "sHORT' OF srOChs.
The special partnership with Mr.. Stynor dis |
solved April 1877, aud since that time the frm has
been composed Of Mr. Mills and Franklin /. Mead. The |
latter admitted INTO the firm some time before the |
retirement Of Sir. staynor. Mr. Mills has continued to
DC a large operator In Wall Street, sometimes |
"a u bull" and at other times as a " bear" |
with varying success lie stated yesterday |
afternoon that lie Short ut the time OF his failure
OF very large line OF stocks, including almost every
thing on the list OF active stocks except the Northwest
and Chicago, Milwaukee and ST. Paul securities |
He had expected assistance but II had not |
come. and he could not stand the pressure any |
longer. His liabilities would be very large. but he |
could not then state the amount even approximately
The larger portion due to men In the street on
tracts and Gccounts while smaller sun was due to his
customers.
II was subsequently, stated by Mr.. Earle tho firms
confidential manager that 1t impossible ascertain
tlle amount Of the liabilities at once hut |
he did not think they would exceed $780, |
COO Before the amount could be definitely known, |
however. 10 would be Ia obtain the accounts
the numerous Offices with Which the firm had been
After the close of the Stock Exchange, brol-
ers met 10 discuss the event Of the day !
and Its probable effect upon tho stock market. |
II was not thought that any, other failures |
would necessarily follow the immediate result OF the
suspcnsion OF T. NJ Mills Co. IL was believed that such
failures, II there TO be any, would have become |
known before the close OF the stock Exchange yeser
day. Much sympathy for Mr.. Mills EXPRESSED by |
brokers generally The suspension was also ianen'ed
by many, who claimed that IL was direct and heavy |
blow the profits OF the street Mr.. Mills had been an
active! OPERATOR and had done much toward keeping
We'll Street business alive. both when Oh TIE 'Du ana
when bear" side of the market At the present
time. when the business OF the street Is confined pri
| ...I... ol.... .ara