National Republican., 1883-08-15
A TIGHT SQUEEZE.
The Firm Of George W. BallOu & Co. Forced
10 Make an Assignment
Statements by Members OF the Firm I'm
New York and Boston.

BOSTON, Aug. 14.-The announcement about
noon to-day coming from New York that tho
banking house of George William Ballou u
Co. had suspended caused an excitement on
the street and in business circles second only
to that following the suspeni nE i. Shaw
Bros. & Co. a few days ago. Iii st lntima-
tion to the Boston house Of any Ipuble was
q dispatch from Mr. Ballou stating that an
assignment had been made to Theodore NJ.
Nevins, clerk in the New York house. 1t
was as much of a surprise to the Boston firm
as to the public generally, and at first it was
difficult TO understand. Later informatio N,
however, states that the assignment was
due to the failure of their numerous GUS
toners to advance the margins needed to
carry their stocks. The firm has for long
time been carrying large amount of all
classes of securities, and the slump of the
past few days has been greater than they
could withstand. 1t was at first intmated
that the failure was the result of the recent
troubles in the Toledo, Cincinnati and St.
Louis railway affairs in which the house is
very largely interested two OF its members
being directors of the road. This was, how
ever, authoritatively denied by ID. II. Oar
ling, one of the members of the house, and
is attributed by him solely to tile cause given
above. He was, he asserted, perfectly as
IOunuBu upon lnc IGCClDI VI ulspdbNh
from Mr.. Balou announcing the assignment,
and said if he could have had an opportunity
of comforting with Mr.. Ballou he would GER
tainly have advised against the suspension, as
he believed that it was uncalled for. The
loston house, he claimed, was all right, but
Of course would now have to go down with
th New York concern.
.iIr. Darling further stated that the firm
last night had securities and cash aggregating
fully ii 100000 surplus over and above all
ii Ibilities, and he could not understand how
there was any necessity for suspension. lie
was as anxious to get full particulars as any
body, which the New York house would un-
doubtedly furnish as soon as possible. He
could not tell how much the liabilities were,
nor what the amount of assets were at pres
ent On the street fears were expressed that
other failures, both here and in New York,
would follow, though it is very probable that
these are outgrowths of momentary excite
ment.
prominent broker of this city said that
Ballou's suspension was occasioned by the re-
fusal of the banks to further certify the firms
checks, but that the embarrassment was
probably only temporary one The hTm
had Deen q large holder of San Pedro, Toledo,
Cincinnati, St. Louis, and Mutual Union
stocks, and the suspension was due in large
degree to the decline in these shares.
The house of George William Ballou & Co.
has done a banking and brokerage business in
Boston lot ABOUT Ten years, bue pIcScut
senior partner starting here in 1873 alone AS
broker in county and state bonds. In 1875
the New York house was established at ID
Wall street, with Mr.. Ballou and William IL.
Bingham in charge, while ID. IL. Darling was
given control of the Boston house. Later on Mr..
Darling and Allan S. Weeks became members
of the firm and are still so counted with it.
The house has built up an extensive and very
profitable business and became well known
throughout the county chiefly in connection
with the Mutual Union Telegraph company,
the Toledo Cincinnati and st. Louis railway,
and the San Pedro and Canon del Aqua Min
ing company, of which Gen. Grant was at
one time president, all of which projects Mr..
Ballou and his associates have engineered.
Tho Transcript says of tho failure of &. w.
Ballou & Co. that it came as thunderbolt
upon the community here. 1t will nsw
be seen that Ballou has acted manfully and
stood by his friends, and if the house
goes down it goes down having made the
heaviest subscriptions and largest outlays
of labor and money to push through enter
prscs ident flied with his name. One OF the
leading Boston bank presidents said to-day :
81 never had any dealings with Balou or his
house, and nevcr made or lost money In his
enterprises, but / can say that II all the
Delphos people had done as mnch as Ballou
to sustain that enterprise. it would not have
been in the hands of a receiver"
The Boston house was carrying the Toledo
enterprise WnllS UnS Now 10TH uOubO WAS Ch-
gagged more largely In stock markets. mostly,
it is believed in commission business. The
buying and selling of 10000 shares to-day
under the rule for Ballous account showed
either for himself or his customers that he
was astride the market, long on Oregon
Transcontinental and Lackawanna and short
on Northern Pacific stocks. This is the pres
ent dilemma of the average stock operator
A month ago this New York house was
long by $1,000 shares of stock, and wa
accounted firm believer in higher prices. Il
was also said that with the Seney and Bric'
party they were "bulling" the market. Th'
"short sales were probably of recent origin
No estimate can be made of the liabilities
but it is generally assumed that they canno
be extensive, and that the ultimate losse
must be comparatively small. The Boston
house. which was carrying the Delpho's Sc
curities, had about 100000 or S3oCOO0 OF
this account, $4,000 of which was in Gin
cinnati Northern, $4,000 in Dayton bonds
$4,000 on account of the Southern Ohio Goa
company, and $4,000 on account of the
Delpho's trust.
NEW YORK, Aug. 14.-Intense excitement
was caused in Wall street and in the stock
exchange by the announcement OF the failure
of George William Ballou & Co., the bankers
The firm is composed of William II. Bingham
tho board member David IL. Darling, Georg,
William Ballou, and Allan $. Weeks. n
definite particulars could be obtained. Th
mouse uld large ana extensive Dublnessi ah'
its customers were principally bank president
throughout the country, Boston capitalists
and Now England estates, Mr.. Ba'lou re
fused to make any statement concerning tn
suspension other than it was caused b.
tho failure of his customers to respon
to calls for margins. Another member OF tn
9rm said that the trouble was merely tenn
porary and that everything would be straight
ened out in a few days. The principal stock
carried by the firm were Ontario and Western
Missouri Pacific, and Western Union 1t
roughly estimated that the liabilities Wi
amount to between 100000 and $5000OC
Under the stock exchange rule relating t
failures all of the stocks carried by the firr
were sold ut tho exchange. Prices were no
materially affected, but there was no end
rumors and excitement. 1t is said that tn
failure will seriously cripple several othe
large houses on the street.
Where to Find the Weather Report.
People who want to know what tho weathC
indications are can easily ascertain by looh