New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-08-16
THE FURRY AT AN END.
FAILURE OF L. C. STEDMAN q co.
Conscience RESTORED IN WALL sTRGET-THEV VIEWS
OF PROMINENT FINANCIERs.


Busnesn Wall street resumed ned almost sTotSmsn 1s
smong the brokers has nsst largely messed PASSED
that all d81e or the time being The stock market
was less active than on Tuesday, and there was more
stesdincss of tone in the dealings. AS rule the
market made an advance which left the general list
HIGHER than at the close the day before. Conserva-
tive bankers aud brokers do not deny that iurtner
speculative changes may take place disturbing 70
those persons who are holding stocks ana SECURE
ties and it is even admitted by some that further
failures may possibly occur. But 1T is peneVcu TX
many that any failures in the near fnture WIZ
be of small concerns whose suspension VIII no'
affect large interests , .,ar,
Yesterday the only incident that caused commoH ~
in Wall Street was the suspension Oh 5unun IL -
Stedmau & CO., bankers aud brokers, uolng oussI
ness at No sc Broad-st The failure, however, uiu
not grow out of the recent decline IN prices, anu u
comment excited by IT was tnaJ OF Ignne letter
was read from the rostrum OF the STOCK Exchanso'
The copartnershp heretofore existing between ~ r
Stdman 20 is this day dissolved by mutual consent
T. c. stedman alone will sgn in liquidation
In addition to this notice. signed bv the two part
ners another was read from L. u o1euinan aio"0'
as f0Ilows ,u
While examining into affairs connected with the ia u;
ure OF Cecil, Ward Il Co. ana tne eA1en' y,
advised to suspend payment, and have accordingly
made assignment, IN wnlcn my late par'I nt tSs
creditors Of E. Q. stedman Co. previously haS Sa1
fully obligations III the BLOCK EAchanee an "
ing closed all outstanding c0ntracte
The failure was caused bv +. S. Stedman, the
Junior partner, having used securities pelongng 10
the firm in speculatlJns through Cecil Wara o. 20,
fhe firm which suspended on Monday. Inese
speculatons had been conducted under fictitious
names since last December The elder Mr. Sted-
man was entirely Ignorant OF them ne mas oee zen
frequently been In the country. whenever ne
made an examination of the securities held Dy the
firm for their customers those which had been
nv
Ward g. Co. were temporarily returned. NO
suspicion of this state of affairs was entertained
by the elder Mr.. Stedman until Monday, when the
recent decline III stocks required him 10 1urnis1
more margin for the protection OF the STOCKS carried
by the firm. Cecil. Ward g. Co. having failed, the
securities of Z. =. Stedman 81 Co. winch had been
placed with the former firm by f. 5. Stedman,
were not available. The amount taken from tue
latter firm was $4l 600 f. Z. Stsdman closed 9nt
ut loss of about $4,000, and then decided
90 make an assignment In order TO prevent any
possible legal complications with Cecil, ward "
Co.. and provide for all his obligations To his
clients.
whom his embarrassment was made known, offered
pecuniary assistance Among them were ) White;
William +. Dodge, William Walter Phelps aud
Others. The aid that could have been com
manded by Mr.. Stedman was fully $780,
600. He declined it, however, considering that
the best method of protecting his clients was TO GO
into lIuuidatIon he liabilities OF II. Z. Stednan
d Co., including about $500 in loans amply
occurred by collateral, are about S15O,OOo The
only preferences gwen IN Tue assignment are 10
Mrs. Jennie +. Croly and Miss l.. b. Perkins, each
Tor 81 900, and to Mrs Emma T.. West for $1,000.
Mr.. Stedman's misfortune, coming as 1t did,
shoueh no fault of his own was universally depored
among the members of the Exchange. prominent
member said: Mr.. Stedman 10 a man OF unques-
toned integrity and be ought to stand higher tnan
ever in the estimation of The pubic for his conddct
m this matter. He has met his mlso rtune like
man and il no question OF money tnat caused
him TO make the assignment" Assignee McGlnnls'
who is "A member of the firm of McGInnls Brothers,
Fearing & Walsh. said that he had no doubt that
Mr. Stedman would be able finally to meet his oD-
legations dollar for dollar. 80
There were no new Developments with egard
to the affairs of the tailed firm OF George William
BalOu d. Co. yesterday. William ii. Bingham, tne
Stock Exchange partner. SAID that 1t would yet 0e
several days before any financial statement couid
be made for the trm From the notices OF tue dlf-
ferences to be settled on the stocks bought and sod
under the rules already received; be thought that
the firms liabilities at the Stock Exchange wouldbe
smaller than had been expected. Confidence 10
still expressed in behalf OF the firm that settle
mept will be- made IN full Such Is not the belief
In Wall Street, however, aud II Is lDtlmated that
suits will he begun against the hrm by customers
who are not satisfied that their securities have been
treated as trust deposits. David III. Darling the BUs-
ton partner of the house. was III the city yesterday
In talks had with bankers and brokers Dy Tribune
reporter hopeful temper was shown. An 0fneer OF
the First National Bank said: " The stock hurry,
/ guess is over for the present We have had
good deal OF rain and there onght % De lew daYs
OF sunshine" A prominent w ali Street broker sad:
II think that all danger OF panic mas gone.
There are not likely to he any more big failures.
Later on a few weak houses. already bankrupt.
Ear formally announce the fact, but any further
liquidation will probably proceed without violence
A weli.known Broadway bank president expressed
his beliefs as follows: Al danger OF general col
lapse has probably passed, If there has been any.
Ii the decline III stocks had come without warning
there might have been trouble. But we have been
hqudating for Il year, and people nave had time 10
prepare Tor the decline. Because OF
this there is reason to hope that
disaster can be avoided. 1t is unfortunate that the
recent furry occurred at this time when the coun-
try needs quIetness for all it's resources III moving
products. The cessation OF speculative activity,
however will probably relieve astringency IN money
which might have come later on."