The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-02-19
FAILURE IN NEW YORK.
McGinnis Bros. & Fearing, Of the Stock Ex-
change, Suspend.

New York, Feb. 1S.-The failure of Nc
Ginnis Brothers & Fearing, was announced at
the Stock Exchange, just before the close of
business to-day 1t was stated in the letter of
the firm announcing its inability to meet its
contracts, that its liabilities to the members of
the Exchange were small. The fact that three
members of the firm were also members of the
board was an assurance that all the debts at the
Exchange would be paid in full. The announce
ment had less effect on the market, therefore,
than it otherwise would have had, although in
the last few minutes of the business, stocks in
which the firm was supposed to be interested de-
clined rapidly. There were no transactions
under the rule on account of the suspended
firm.
The Tribune says the immediate cause of the
failure is said TO have been peremptory de
mand by the Or2gOn & Transcontinental Com
pany for the r.lyment of some $75 900 which the
firm owed IT, VIM. Endicott, jr., of Boston,
who succeeded Willard aspresident is said to
have demanded an immediate settlement of the
account on Saturday, before he started for home.
The failure was not wholly unexpected, because
of the difficulties under which the firm was
known to be struggling The liabilities are
mainly to customers of the firm whose margins
and profits have supplied it recently with work
ing capital. The amount could not be approx
mated, even, this evening. 1t is known the
debts were small. and comprise engagements at
the Stock Exchange obligation to the Oregon
E Trauscontinental Company loan OF $4,000
at the Fourth National Bank, which is secured
by ample collateral, and something over 500, 900
due George NJ Pullman on account. Mr. Pull
man was said to have been one of the largest
customers of the house. 1t was soon learned
that Pullman a creditor and not debtor,
and that within few days he had taken up the
stock carried for him by the firm.
Mr.. Pullman of the Palace-Car Company
says: 81 have not sold any stock for at least a
year. am not only the largest stockholder but
! hold more stock now than / ever did be-
fore have bought 800 shares to-day
at the low prices which are cur
rent. J do not know how much
car stock the firm may have been carrying for
it's Chicago customers, but the amount could not
have been over 2 GOO or possibly 5000 shares
At the time of the failure it certainly was not
carrying any stock for me. l was interested in
West Shore bonds and slightly in Northern Pa
cifc stocks, in addition to the car stock but for
several weeks | have been taking up securities
There is a small balance of something over $40,
600 due me from the firm. That is the extent of
my connection with the failure am very sorry
the firm has been obliged to suspend. l have
known John McGinnis intimately for long
time. He has lived in Chicago several years
His popularity gave the firm a large patronage
there"
The suspension is not due to losses on grain or
on produce, and the Chicago correspondent of
the house will not be affected by the failure
Their business in gram and provisions has been
strictly commission business. The failure does
not affect the present position of the stock mar
ket 1t is due to losses sustained in Northern
Pacific last August. 1t was precipitated by the
pressure brought against the house by the Ore
gon & Transcontinental company The firm
owes about $75, 900 to that company, and it was
the action regarding this Indebtedness which
prevented the firm from successfully bridging it's
troubles over.