New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-16
SUSPENSION OF FISK d HATCH.
THE FAILURE ANNOUNCED AT 2:4o P. NJ.

SURPRISE AND sYMPATHY-A STATEMENT OF TIE
FIRM.
After o'clock the feeling was general that the
dav would pass without any further disasters, ana
when at $40 il was announced that the widely
known and honored firm of Fisk Il Hatch was
unable to meet its obligations there was great sur
Prise and much sorrow. In less than five minutes
after the failure was made known from the rosilum
of the stock Exchange. Nassau-st, from Pine to
Wal ST. was filed with an eXcited
crowd. The space outside the ralled
inclosure in the large Office of the firm. at No. o
Nassau-st was filled with brokers. brokers clerks
and messenger boys, many of them with checks on
the firm No explanation OF the cause OF the failure
was gwen.
"The firm has suspended payment" was the only
answer given to an avalanche of questions.
"Will it resume 2" was asked by dozen voices.
No one IN the outer Office was found who was will
ing to answer the question. Inquiries for the mem
bers of the firm failed to produce any result In
short time several detectives in and the rooms
were slowly cleared of the thrOng. The heavy iron
doors were closed and a policeman placed OH duty
at the Nassau-st. entrance Only those having ur-
gent business with the firm were afterward adj
mtted.
For more than an hour Nassau-st. in front of the
banking house was almost impossible he general
feeling IN the street was one OF profound sympathy
with the firm II acted with marked liberallty to-
ward its creditors in the years succeeding its fail
urc in the panic of 1873 and paid obligations
nearly or quite in full that it might have escaped
paving with only small percentage of the face
value.
A. s. Hatch, the junior member of the firm, and
president of the Stock Exchange, was seen by
TRIBUNE reporter about ten minutes after the doors
of the banking house were closed. He looked much
worn and harassed. Il have nothing to say at
present. he said in answer to an inquiry as to the
cause of the failure and the condition of the firm
81 am so prostrated by the occurrence that can
give no clear idea at present of our condition. we
shall prepare a statement as soon as possible"
just before O'Clock TRIBUNE reporter again
gained admission to the Office. number Of clerks
were poring over the books of the firm. Said Har-
vey Fisk, the senior member of the firm: NV
clerk is now copying draft of statement we
have prepared for the press You shall have copy
of it in few minutes"
Meanwhile" said the reporter. "can you not
tell me something of the assets and liabilities of the
firm~
Not now not now" replied Mr.. Fisk; call that
we can make public is in that statement"
"But can you not tell me within few millions of
dollars what the liabilities arep
A STATEMENT FROM THE FIRM
Mr.. Fisk still courtcousy insisted that he could
add no information to what was contained in the
statement of the firm. The statement is as follows;
OFFICE OF FISK 4 HATCH. No. XAssAg-sr' XAss;Aag,r'
NEw-IORK, May 10, 1881
To orr DepOsii0ys Gnd 0ttr Orcdtors:
10 Won our suspension which has brought about by
a combination OF circumstances. The long continued De
cline In the market prices OF securties even the very
hest accompanied by general weakening OF confidence
in financial matters, together with heavy drainage OF
deposits are the principal Of unfort posi-
ton We can only request those having claims against
to extend TO us such and indulgence as
we may need and il may be IN their power to grant
Mr. Fisk only returned from Europe few days
ago He therefore knows comparatively little Of
the details of the business during the time he
away-nearly one year.
Mr.. Hatch who has conducted the operations of
the firm in his partners absence, said late in the
afternoon:
Il cannot give any details of our condition. A
statement Of our actual condition will be prepared
Just as soon as it can be done. Until that time we
| must beg the indulgence Of our friends"
lie was asked whether he could not give a fair
guess at the assets and liabilities but replied that
il would be useless for him to do this. 1t would be
better TO wait for the detailed statement.
| THE PRESIDENCY OF THE STOCK EXCHANGE.
! Mr. Hatch was elected president Of the Stock EX-
! change for a second term last week. There was no
| opposition vote The failure caused a momenary
Autter among the members Of the board because 1t
was found that the bylaws made no provision to
meet such contingency. The vIce-president is
authorized to act in the presidents place in case of
+ death. II is understood however, that Mr.. Hatch
will resign at once and his letter probably viii be
read at the meeting of the Governing Committee
to-day. An election will be held in few days.
Meanwhile the duties Of the Office Will be per-
formed by Vice-President William Lummls.
i CAUSES OF THE FAILURE.
HOW THE FIRM HAS BEEN AFFECTED BY TIE DE-
CLINE IN GOYERNMENT BONDS.
The general opinion seemed TO be that the failure
of the firm was due part TO the fact that IL had
been for years heavy investor in frst-class rail-
road bonds paying high prices for them; and ina
| bility TO realize on this class of securities
without heavy loss was one element OF