Delaware state journal. [volume] (Wilmington, Del.) 1870-1883, 1883-08-16
GEORGE ". B.ILLOU a. co.
Their Failure Announced-Hop of
Resumption.

htsubiptfpb,
NEW YORK, Aug. l4-GeorSe William
Ballou x Co., stock brokers, have failed
The suspension Of the firm has just been
announced on the stock exchange. 1t is
believed that the suspension will be only
temporary. 1t is understood that New
England customers of the firm wert
unable to respond to calls for margins,
and ten thousand shares of dif.
ferent stocks on the firm's
account have been sold at the Stock
Exchange under the rule. Later reports
say it is very probable that Ballou 4 Co.
will resume business almost Immediately
as it is understood that syndicate IL
being formed to assist them.
LATER PARTICULARS.
The failure is understood TO have been
caused by the inability OF its customers
to make good their margins and to the
fact that the firm has had considerable
money tied up in the Cincinnati, Toledo
& st. Louis narrow gauge road, which
recently went into receivers
hands. About 10000 shares OF
various stocks were closed out
under the rule for their account, in
Guiding Oregon Il Transcontiuentsl, New
York Central, Denver & RIO Grapde, Mis-
souri Pacific, Jersey Central, Wabash,
preferred, and Lake Shore. The rally in
the market before II o'clock WAS on re.
ports that a leading operator had puf-
chaseds large block At private sale.
Since the announcement OF the failure
a quieter feeling has prevailed in stock
circles, 1t being generally believed thai
the suspension will not necessarily lead
to any other failures, 1t is stated that
Bslluu & Co. were recently long OF the
market and turned bears at almost the
lowest prices touched.
George W. Ballou x Co., the prominent
New York brokers whose failure was an
nounoed Tuesday, made general
assignment in the afternoon to Theodore
NJ Nevins, a clerk in their New YUk
house. They authorized the statement
that they exp=et to pay Mp in full and
all they want is time TO li4uidate. The
| liabilities of the firm are stated at
| $4,000.
Much sympathy was expressed for
Bailou Il Co, and II was generally
thought that the failure was an honorable
one. 1t Seemed 10 be the opinion OF many
parsons who fhould know, that the firm
had spsculated on the bull 6iia Of the
market, and that Tuesday morning,
when the ESeGauge opened with snott eli
drop in prices, the fru aought to protect
itself by hedfinR, and accordingly sofa
short at the time prices were at the
lowest, so that when there was general
rally the honse cav itself badly caught.
a prominent gentleman said that Balluu
x Go had been heavy borrowers in Boston
from two trust companies, using the
bonds of the Cincinnati Il st. Louis
narrow gauge railway, in which Ballou
Il Co. were extensively interested, as col.
lateral. This company has been unfor.
tunate and recently passed into the
hands of receiver. The loans which
had been made on its securities were
thereupon called in by the Boston trust
companies and this had proved an EN-.
barrassment TO the firm.
No bad results are apprshended &c
other houses. Jesse Seligmau, Jt., says
s'There is no occasion for alarm" Henry
Clews says "The worst of the SEVERE
attack Of seasickness is about over the
patients will now very likely begin tC
sonvalesce, inasmuoh as land is in sight >
Rufus Hatch says: "There is not the
slightest danger of panic. This il
only liquidation carried too far. The
pablo is not suffering by this great DROP
in the price of stocks. The people a
large haven't been in Wall street for two
| yeara.'