New-York tribune., 1883-06-19
PRICE FOUR CENTS.
THE FAILURE OF McGEOCH.
FIRMER FEELING In THE LARD MARKET.

broken lard corner, the panic in provisions and the
losses and disasters that the latter caused are still
thought of and talked about to the exclusion Of
everything else John X. Bensleys, of tho firm Of
Bensleys. Wagner & Benseys, was this morning
appointed receiver of the suspended firm. He filed
bond in $500,000 and has already entered upon
bis duty of settling up the affairs. Three hundred
and odd accounts have TO be written up, varying in
magnitude from sale of 10000 tierces of lard
down to the purchase of one 5000 -bushel lot OF
wheat.
1t is scarcely easler," said member IF tho firm.
to give an intelligent guess at liabilities to-
night than 1t was on last Saturday night. We have
not been working toward a result We have been
writing up the individual accounts. Here (plcking
up package of thirty or forty accounts) are all
the b accounts, and there (pointIng to package
as large all the "A accounts When we get
through the writing up the accounts it will be
short work reaching the summary of our liabilities
and assets, but we have not got that far yet. If
should guess at the indebtedness should put it at
between 81 100000 aud 81. 100000"
The smaller firms which failed because of Nc
Geoch's suspension are waiting upon the Scotchman
to straighten out their affairs. Messrs Ellis Ss
Lightner, of the firms which suspended, owe prob
ably tho most money. Their liabilities amount to
Sl2O0O0 They held %. 900 tierces of lard for the
Scotchman's account at a margin of only III cents.
Messrs. j. NJ. Bell & Co. owe probably not above
100000 This firm had only 10000 tierces of lard
bought at margin of about 1 1 cents The heav-
lest losers, 1t is now believed, were rich firms
which could not only bear the loss with eqdanim-
ty but which had enough money to hold their
property until to-day. Some of these undoubtedly
bought enough at the bottom price at the height Of
the panic to recover partly or wholly. The Board
of Trade firms never met with such losses as wero
suffered On Saturday. Of the money which Nc
Geoch owes 81 900, 900 IL due to his brokers'. His
banks. it is said held to their property aud only
sold to-day after the market had recovered cent
a pound from the bottom ignres of Saturday.
Philip Armour this morning bought every terce Of
lard which McGeoch mad at the local banks, incud-
ing all tie property he had hyp othecated at the
Bank of Montreal 1t was taken at 50 90. Armour
now owns all there is here. The orders, he says,
from jobbers during this forenoon amounted TO
than all the orders viii h have been received with
in tue past sixty days.
WHY THE SUSPENSION WAS FORCED.
1t is easier to-day than it vas Saturday to ges
at the real facts which led directly to the failure.
The truth appears now to be that suspension was
forced upon McGeoch by his friends because they
saw that it the quickest easiest way out Of
his troubles. When at o'clock lt certain
that Alexander Mitchell would loan no more money
for the " deal" partner of the Scotchman went TO
the Bank of Montreal and inquired of tue book
keeper how much balance the firm had. 1t was au-
swered that there was $250,000 10 its credit. Tho
partner then went to Mr. Monroe, the manager, and
said that the firm had suspended The banker was
agitated than business men usually allow
themselves to be- lie burst into tears and said that
he would be deposed and ruined He was fnally
Gained and the partner part n & said " Mr. Monroe we
checked rDc~ il for margins sed we wish you would
pay out. You aIe secured IT you 40 not sell yonr
lard" Mr.. Monroe finally agreed to do this, and 10
is a remarkable fact that Tie checks of McGeoch,
EVerlngham & Co. were psId up to this morning,
one check for $l,400 being certified at the opening
OF banking hours this forenoon The fact is, thas
the Bank OF Montreal instead Of embarrassing
McGeUch, stood by him pluckily to the end. ls
probably loses not cent of money for Armour boughs
of IL all the lard which il held for tho Scotchmans
account The other local banks also held on to their
lard until today ut the urgent caution OF McGeoch,
mOur. Ii this lard had been thrown out on Satur-
d sy along with the 100000 tierces of future lard.
the market would OF course have gone much lower
and the panic would have been more disastrous.
REACTION IN THE MARKET.
The provision market today was strong. No
body aware-of the fact relating to the enormous
purchases wonder that it was. II was nos
pancky. Whenever property was offered at even
little sacrifice It was taken in matter what sized
lots-1 900, 1000, 5000. and even 10000 barrels
Of pork at time. and lard In packages of the same
than oil Saturday night and lard as high or higher
than on Saturday Short ribs were no lower than
at the close of last week. June pork stopped at
lard closed at 50 75nJuy, 50 S2ll and August at
So S7l2. The luctu1tons during the day were vide.
but no more so than occur on active days.
About the wheat pit, however, there was
little pause, 1t dropped between two and three
cents bushel, and grain came on the market in
vast quantities. lt seemed about noon as il the
scenes which were enacted about the lard pit on
Saturday were to be repeated in the wheat Dit.
The whole decline occurred inside Of two hours and
orders crowded in from all quarters to sell oue
. long" wheat upon which margins were exhausted
June wheat dropped from ~ Oot to 81 O6,s
the bears The tumble was the result of tho
usa alarm The large G9Ss:
customers. Wherever these calls were not re-
sold out. Such firms Nichols x Co, who have
had good share of their customers long wheat,
'old millions of bushels OF grain These tremendous
Kept up. The wheat which the Savage clique has
Ieen holding was sold to-day, so it is said. While
,ent. Both closed almost at the bottom, but the
onidsnee " was osa s1meThat restored June wheat
pPpsa as ay u oS S ay esns o June at
Ii is said that tue Fowler Brothers endeavored to
'uy all of their James Wright & Co. brand of lard
n to-day offering the banks 8 cents over the mar
ret for such as they held Armour, however. goa
{; This is the lard which the Fowlers are charged
Il margins we're deposited at the banks TO protecI
rades, mostly in lard and PROVISIONS At the Nc
ieoch-Fowler lard investigation today Professor
nd testified that he had tested since his first
taken. The lard contained tallow
mi cottonseed oil. Two other witnesses, employees
( the Fowlers, and who only left them on Friday
is testified that they had shovelled tallow into
ettle No and then turned the valves so that it
'ould be let into the lard tank. They bad then
cen called down and had drawn off tins into
erces which were branded prime steam lard of the
ames Wright a. Co. brand. The prosecution thon
.sted.
NO FAILURES IN THIS CITY.
There was considerable anxiety among lard
en in the Produce Exchange at tue opening Of the
arlet yesterday, but lara opened strong-at so 40