, 1884-05-01
jim kEENE BUSTED.
The Noted Grain Spectator
Tumbles With a Crash.
Ill Luck of Late Induces Reck-
less Speculation,
Which Finally Carries Under
CALIFORNIA; FavOrite Son.
Jim Keene's Failure.

Jim Keene's Failure.
NEW YORK. April 3O.-The announce
ment at 3 O'Clock this afternoon of the
failure of james r Keene. the well
known Wall street operator, was received
by many with incredulity. 1t created at
first y tremendous excitement among the
smaller dealers and operators who had ap-
parently not anticipated such Il result.
The effect ON the market was not appreci-
able this afternoon as the announcement
came 50 late. Very little accurate infor-
nation could be gained in regard to the
failure, although rumOrs of a most contra
dictory character were circulated in great
numbers. 1t was learned, however, that
the failure is due to the fact that Keene
has for some time past confined his stock
operations to transactions in privileges
and selling puts aud calls. \ large mum
Der of these contracts fell due to-day, and
it was said that Kcene began this morning
by paying them off. and after spending
over SI50,O00 in cashing differences re-
sulting from a falling market he found
himself running short. and having no
more money ut his command he was forced
TO refuse to take the stock put Ia him.
The news spread rapidly, and soon his Of
flee was besieged with customers and cred
ltors, who fought with each other to gain
entrance. His secretary, Mr.. Wells, con
iirmel the report of his failure to meet
his engagements, and said it wa owing
to unfortunate s~peculations. He said
that Mr.. Keene would make no statement
to the public at present. but that he would
make Il statement at an early date to those
who are interested more intimately in his
affairs. 1t is understood that Keenes
transactions have been principally
in the stocks of the Erie. Western
Union and Union Pacific companies. 1t is
also said he was severely bitten in the re
cent shrinkage in the values in the North
EN- Pacific and Oregon < Transcontinental
stocks. He refused to see any reporters
at his Office to-day and at his house this
evening il was said he had gone out of
W and was probably in Newport.
Later in the evening. however, the follow
ing statement was issued FOR publication
to the Associated Press reporters: After
paying out millions of dollars in cash dur
ing the last few months in my efforts to
protect my privileges in a falling market,
| have finally determined to day to call a
halt in the interest of those with whom
| have business, JAMES h. KEENE.
Shortly after the announcement of his
inability to meet engagements, keenc
was offered by a number Of friends and
business associates the use of S4OO. 900.
He refused to accept it, saying he did not
propose to make matters any worse by
keeping up his margins any longer. The
failure was the absorbing topic Of CONVEX
sation among the brokers and bankers
who assembled this evening at the Mind
sor hotel and various comments were
made by those who had either been
friends or opponents of the great eaerator.
\ friend of his acknowledged that
keene's operations III privileges recently
have been utterly wild. The fact that
Keene has been losing money in the
street was recognized by careful observers
a long time ago. For more than a year
many conservative houses have refused to
accept his privileges asIpartial margins
for operations of their customers. A
year ago last January business relations
ceased between Keene and S. W. Boo
cock 4 Co. who had for years acted as
his brokers in the Stock Exchange,
handling many millions of dollars. The
brokers who are said to have done most
of his Stock Exchange business recently
are Collins K Levy and Allerburg &
Tllinghast. \ well known Western man
who held chose relations with keene when
he first appeared rs a Wall street opera
tor said last evening ut the Windsor
hotel: Mr.. Keene came to Wall street
in November, 1870. bringing with him
5000, 900 which he made in California,
first in the great rise in mining
stocks, and afterwards in their heavy drop.
His hrst important venture was with
Gould in the Atlantic x Pacific telegraph
combination against the Western Union.
In the summer of 1877 the two men
quarreled, and Keene was hailed by
Wall street as a rising power distinctly in
opposition to Gould. At the time of the
railroad riots in 1877 Keene was almost
the only man who dared to buy stocks.
He bought them by the ream in the face
of the seyerest decline, and if il had not
been for him the consequences to the
market probably would have been terrible.
Although he traded on both sides of the
market, most Of his money was made in
the rise of 80. | believe that NJ nne
time his wealth was fully $4,000. 600,
The great grain corner with which his
name is 70 popularity connected caused Mr..
Keene q loss Of about S5.OO0,O0 Since
1881 he has been steadily losing money. -
Boek / Bock I, Bock .fE
Kimme'a celebrated Salvador book baer