New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-16

prise. The comparative indifference OF broter...
the event arose from their knowledge that the con
Germ had few outstanding contracts with other mem.
bers of the board. The fact that purchases were
made for Its account under the rule, showed that
the failure was due to influences not connected
with the troubles of Wednesday.
The suspended firm Is composed Of Anthony W.
Dimock and his younger brother, Arthur
Vaughn Dimock The elder brother "a
the president Of the Bankers and Mer.
chants Telegraph Company and was one
Of the active promoters of the enterprise The
company was organized few years ago with the
protested intention of doing business only for its
stockholders, who wereYstock-brokers, bankers and
other downtown business men. Subsequently Mr..
Dimock aud his friends, obtaining sufficient control
! of the property, decided to extend tho companys
| lines Within year the company purchased the
control of the American Rapid Telegraph Company.
small concern whose principal line was between
| New-York and Boston The friends and officers OF
the Bankers and Merchants Company made many
declarations respecting the conservatism and cor
rectness of its management. Careful brokers, how
ever, looked aslance at the company when DimocR
Sc Co. carried the stock up to 40. In spite OF the
advance, however there were few purchases
except by those who were manipulating
it. The difficulty experienced by Dimocs
&, Co who were the heaviest stockholders IN
obtaining loans to carry the stock has been grow
ing greater for some time The failure was pre-
cipitated by the calling of loans that had been
made on the stock, and the firm had no other re-
sources which would enable them to take up the
loans The companys stock sold at lib on we'd
nesday and after the failure dropped rapidly TO 10
After fluctuations at somewhat higher hgures the
stock closed at about the lowest point Of the day.
AN ASSIGNMENT TO CHARLES PUTNAM SMITH.
M do ain emf n
Smith who Is the counsel of the telegraph company.
Preferences were given only to those whose claims
against the firm individually under 81 ,OOO and
to tho employees OF the house. Mr.. Smith stated
that the total amount of these preferences would
Got exceed $4,000 to 1000. He said that tine
firm had made money in the stock market on the
"bearn side since the assassination of President
Garfield but that most of the profits had been put
into the Bankers and Merchants Telegraph Com
pany. NJ. Dmock was compelled TO use the stock
of the company collateral on loans, and when no
was called upon to repay the loans he had no other
securities on which 20 obtain the money. Dir.
Smith said that the failure would not affect tho
solvency of the company. Ii would interfere how
ever with the extension of the cOmpanys lines, az
Mr.. Dnock had been the fiscal agent OF the COM
pany and had advanced the funds necessary to
carry the work.
Mr.. DIMOCK's CHECKERED CAREER.
The SUSPENSION is not the first failure of A. w.
Dmock He has been noted for his desire to en-
bark in big enterprises which have generally
ended in a collapse. Originally he was clerk With
Henry G. Marquand for several years, and III jan
uary. 1865, he aud Mr. Marquand formed the firm
of slarquand & Dimock. In September 1867,
this firm was dissolved and Mr. Dimock estab-
lished the firm of 4. W. Dlmock Il Co., with his
brother and Edward d. Weston as partners, sue
eeedinc to the business Of c. C.. Puppy * Co.
The senior partner in 1865 had invested largely
in the Atlantic Mail Steamship Company
but its collapse compelled his house to suspend on
April 8, 1868. w Dmock was next negro OF az
| the leader in a q enc to develop the town and
place it above tn AIRY of all other towns IN the
undertaken by ne town in pursuing its
and Mr.. pimoCl ambitious plans was the
failure of llr. l rock, and the pIpngmgs ; OF
| charged from bankruptcy on 1874 nI; Dlinoch
| started in business under the name OF the former
| firm with one of his brothers, George Z: and
| subsequently retired, and j. L. Rowland entered
the firm He withdrew in January 1, 1884, and
! Arthur Y. DlmOck became a partner with his
| bro her. Some of the funds supplied during the
short-liyed existence of the penny evening news
| paper, The Daily Standard a few months ago, are
| said to have come from n. w. Dnnock.
| CONDITION OF THE TELEGRAPH COMPANY.
Before the Board meeting of the Bankers and
| Merchants Telegraph Company took place, one OF
| the officers of the company said:
Mr.. Dimocks suspension will only temporarily affect
the company. Mr. DmOck our president OF course,
and an enthusiastic Of the board OF drectors bus
he was only asst were the financial agent OF the CON-
prosperity and s0undneSs as before MS suspension when,
r@s VII only De 1eRSr b "G Dp rene ' sSsde ON
ness but In the present state OF public feeling this would
hag s Far as # know Se .o SROr sui ii
remains in the same hands and we have .a among
sound in the city. On the last day Of March We
found ourselves with 10000 miles or wire nnlshed ana IN
order to complete system it necessary 10 have
100000 To-day we have already completed over 10000
miles, thus there remains 20 be erected only SONS
$1,000 miles large part OF this is under contract and
we have been told by the contractors that they VIII
e When ON Me 6nP.Tes srs eTens Viii be hndeed no
doubt As they stand mt present our lines reach from
tend south to Montgomery. Alabama The stoekls IN
excellent condition and the cost OF construction was
remarkably low. We have capital or S3,OUOOOO and
watered stock while our present earnings are AT lae
eeSe that the company is sound as regards its business
| One thing Is sure enough. Mr. DimOcks suspension
ishe the namber Of messages which are sent by
wires Indeed business to day has exceeded any
thing We have heretofore done.
DONNELL, LAWSON & SIMPSONS TROUBLE.
THE FIRM NOT LIKELY TO REsUME-wHAT Mr..
! SIMPSON SAYS.
| The statements of members of Donnel Lawson
Il Simpson on Wednesday that their suspension
| was due wholly to the supension of the Metropoli-
tan National Bank were not confirmed yesterday
| The Metropolitan having resumed similar action
on the part of the banking firm was anxiously
! awaited Toward the close of banking hours it be-
gan be whispered around that their failure would
be total. The bonds of the Cleveland, Youngstown
and Pittsburg Railroad were mentioned as the matter
in which they had been most crippled This was
the security over which the Bank of the Republic
directors had a difference, about month ago.
which resulted in President Ford's resignation.
Tho Bank of the Republic was one OF the two
! baGs~ with which Donnell Lawson Il Simpso n
did business, Mr. Simpson being director in it. 1t