Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-10-03

| y
general alarm and hurried the downfall Of
Messrs. Preston & McHenry, they being I'M
able to respond to the calls that were made on
them for additional margins. The worst re-
ports that were aloat Thursday evening were
more than realized. At that time nothing
definite could be ascertained beyond the bar
rem fact that the drafts on Cincinnati had not
been honored, and those who had made late
calls on the firm in question had been put Oh
till s'to-morrow." Assurances were given
that Mr.. Preston would be home Gin the
morning" with bag full of Cincinnati
money. 1t was wind instead of cash he
brought back, however, and the houses that
| had trades With him and wanted more mar
gins were fed on this
VERY THIN DIET
| when they sent agents around for checks.
tour principals have been abundant securities
and will remit as soon as they can
realize on them," was the stereotyped
explanation given, coupled with a
promise that the "money will be here by
o'clock" One O'Clock came and the proceeds
of those securities did not materialize. Then
it was SO o'clock" When that hour arrived
the song was again changed to tomorrow"
Tomorrow it will be all right" they said to
the disguised visitors who thronged theif
office. III am afraid the talk about those
securities is 'stiff,'" said one creditor as he
turned YEARLY away. "Probably they have
been sent by slow freight" said another.
"Quite likely" put in q third, ''and maybe
they are waiting for the track to be laid. For
my part don't believe the line has been sur
veyed."
Neither Mr.. McHenry nor Mr.. Preston are
prepared to make public statement Of their
affairs. They have not lost faith in the exist.
ence of the Cincinnati collaterals, though
their confidence in the existence of Cincinnati
honor has sustained a dreadful shock and theJ
hope to be able to tide over their difficulty yet
That the majority of their friends do not
think so was shown by the fact that nearly
everybody who could closed out their trades
with the firm, under the rules, yesterday. Out
100000 bushels of wheat, and OBJ
servant brokers put the amount
bet ween S,5oo,ooo and s,ooo,ooo bushels,
This can not be very wide of the mark. The
embarrassed firm gave its interested neighbors
the widest latitude. "You can do as you
please" it's members said; 1--WE think we
shall be able to pull through, but if
you do not want to wait you can close your
trade with u.s."
Preston & McHenry, as the new firm is
styled, have been very heavy operators, and
| there is scarcely firm on the board of trade
| that will not be affected more or less by the
failure, or suspension. AS no one can tell
HOW THE FIRM WILL COME OUT,
whether it will pay in full and continue bust
ness, or settle on the basis of five cents on the
dollar, any attempt & to give figures
of the losses would be the merest specu-
lation and useless consumption of time and
space. If the experience of Hough & Co. with
one of their principals is to be taken as a
sample, Preston & McHenry may as well fold
themselves up in their little shroud and Law
themselves down in the board of trade morgue.
Hough's man, who left that firm to hold the
bag for $1,000, proposed to compromise the
thirty days, in consideration of receipt in
full for the entire sum. Such an exhibition
of gall was APPALLING to even Chicago broker.
| The fellow should locate in Gamblers alley
permanently. The blind girl who peddles
papers in the area would have to put Z pad
lock on her pocket book.
THE MARKETS
were feverish all day, and prices we're subject
to wild fluctuations. Everybody was on the
qui vive to obtain the latest information with
regard to Preston & McHery's affairs, and
every time man stuck his head up with q
proposition to buy wheat prices went up like
q rocket. The crowd thought the time for
closing out the whole deal had arrived. 1t
was noticed that half dozen Of the heaviest
men on the board always came to the front at
such moments and sold down the market, and
this fact was taken to mean that combna.
ton had been formed for the pur-
pose of giving the concern chance to get out
with as little loss as possible. Both Of the
leading members of the firm are well thought
of, and the crowd has as kindly feeling for
them as it can entertain for anybody in bust
ness. The "crowd'' ID usually found to be
possessed of the spirit that moves genial road
agents TO rob a man and then treat him to
champagne with his own money, but instances
are very rare when it foregoes the pleasure of
robbing, though the Mumm Dry sequel is
sometimes forgotten. Their regard for
Preston d McHenry is genuine, and there is
no disposition to press them to extremities
with unnecessary harshness as long as there is
no money in it. The market opened at about
the closing figures of Thursday afternoon,
then declined N cents, and advanced with
fluctuations 2H@2T cents, weakened and de-
cl,ned 81 cent, fuctuated, and finally closed
about ~ cents lower than the day before,
October wheat bringing $1.3S%, November
81 .42H, December $l.43, and year $L381.
The market was feverish and excited to a
degree seldom noticeable in the most critical
moments of extensive corners. Some definite
conclusions are likely to be reached to-day in
the Preston & McHenry difficulty, and that
matter will then cease to have further in
fuence on prices.