The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1884-05-21
A DAY OF FAILURES.
TROUBLE AMONG NEW YORK FL
NANCIERS.
Over Half a Dozen Brokerage Firms
and the Metropolitan Bank
Compelled TO Suspend
Operations.


a series of financial disasters as to-
day. The reverberation of the crash
caused by the fall of the Marine
Bank and the firm of Grant Il Ward
had not died away on the financial
air " hen yesterday the cloud o.
another storm began to lower in the
shape of trouble at the Second Ma
tional Bank, but late last night this
passed away. A second cloud of
disaster, however, broke oyer the
city this morning, and thick and
fast came the announcements of
suspensions.
The scene at the Stock Exchange
was one of intense excitement. There
was rush to sell stocks, partly for
the account of brokers who soon an
nounced their inability to meet
their engagements. Before 1915 a.
M, Nelson Robinson 81 Co., and
Goffe & Randall announced their
suspension. Tie suspension OF the
Metropolitan National Bank capped
the climax. Then followed the sus-
pensions of o. NJ. Begart & Co., J.
c. Williams & Co., Hatch IL Foote
and Donnell, Lawson e. Simpson.
The failure of Hotchkiss, Burnham
& Co., was also announced during
the afternoon.
A large number of depositers gath
cred around the Second National
Bank building in the morning. The
Directors of the bank each put in a
certain amount of money TO cover
the deficit. 1t is thought that Mr..
Amos r. Emo, the father of John G
Emo, the late president of the bank,
contributed the lions share. In or
der to accommodate the rush that
was expected the bank was opened
at 90 o'clock. Immediately a stream
of several hundred people began to
pour in over half of them being la
dies. Some of them came to depos-
it, but could not on account of the
crowd which was there to draw out
their deposits.
All those who wished to drag
their deposits were given them.
Secretary of the Treasury Folger
came to the bank in the morning
and congratulated Mr.. Emo and the
President on the successful termina-
ton of the banks troubles. William
Walter Phelps, one of the Directors,
said that the bank was opened early
in the morning to prevent a
panic.
In regard to to the supension of
the Metropolitan National Bank, it
/ is known that the President, George
/ Seney has been one of fhe most
prominent spectators on the Stock
Exchange.
4 prominent Director of the Me
tropolitan Bank SAYS emphatically
that the depositors will be paid in
full. He says that the Directors
have. gone through all the securities
OF the institution, and, throwing out
all that may be classed as in any
way doubtful have more than suffi-
cient to pay the depositors. He
says further that the suspension is
solely due to the fact that the depos-
itors throughout the country having
become scared through the attacks
on the President of the bank. Mr.
Seney, had inaugurated a general
withdrawal of the deposits. This
fact, coupled with the general dis,
trust engendered from the critical
situation in speculative circles caus-
ed the bank to suspend. The bank
is debtor at the clearing House fol
s50O,OOO.
o. NJ. Bogart & Co. have assigned
to John Wheeler preferences, $780,
600. Their failures is considered
most important, as they have been
large dealers in csinmercial paper
They dealt somewhat in privileges
and were considered solid house
All stocks guaranteed by Nelson
Robinson & Co. are a good delivery
The firm consisted of Nelson Rob
inson, son-in-law of George |. Senev
Robert Seney, George |. Seney, Jr
(his two sons, and Robertson Rod
gers. Three members of the firm
own seats in the Stock Exchange
George |. Seney, Jr, being the only
: exception. 1t is reported that Mel
, son Robinson had disappeared from
the city.
Hatch Il Foote- state that thei
suspension was caused wholly b,
the exhaustion of margins, the re
fusal of customers to redeem then
! : and their inability to sell stock
without further sacrifice. The fail
nre of Hatch & Foote is likely tc
involve some country firms, as they
held accounts of many privat,
bankers outside of New York, a,
well as of individuals in the Yves
and South.
Donnell, Lawson d Simpson, wer
large dealers in county, water ant
, city bonds. The firm in their noticI
, of the failure, say: Owing to tht
general panic prevailing, we deem
, best to suspend until we can Sc
, where We stand"
Folger telegraphed to Washington
: to take up bonds of the 127th cal
on presentation. The bonds are no
: due until June 20. The Secretary
! further promises that such step;
shall be taken as will relieve tn
: present situation.
, The Commercial AdUertiser says
Y at is reported on excellent authori
q ty that serious rupture took plac
q yesterday between Jay Gould AM
Y Russell Sage. In consequence of thi
large block of Western Union wa
!, thrown upon the market, and 9
n broke the price from 60 to "a. TIL
4 bad feeling between the two grea
! tinanciers continues, and to-day
o catastrophe is believed to have bee
q largely induced by this circumstanc,
n 1t is certain that no conference ha
q taken place between Gould an
!. Sage, as there has on previous occa
i sion of a somewhat similar nature.
3 The Clearing House Committe
(. went into session early this mornin
rs soon az IL could convene after III