Morning journal and courier., 1884-05-15
News by Telegraph
FROM ALL QUARTERS.
A FINANCIAL CRASH.
Disasters Falling Thick and
Fast.
WALL STREET IN A PANIC.
Many Firms Caught in the
WhirI.
A RAPID ROUND OF FAILURES.
The Day a Second BLACK
Friday.
A RAPID ROUND OF FAILURES.
The Day a Second BLACK
Friday.
A WALL STREET CRASH.

A WALL STREET CRASH.
| A Panic Change Failures Follow
Each Other in Rapid Succession-OId
aouses Caught 4 a the WhIrI-Phflan-
thrOpfst Seney Among the Number-H1s
Bank Closes its Doors The Story of q
Day That Was Another Black Friday
NEW YORK, May 1.-THE financial COM
plications of the past week resulted to-day in
| q succession of disasters that made the wild
est havoc in Wall street. The announcement
of failures began with the opening of the
Stock Exchange and succeeded each other
| rapidly, each new disaster adding to the PAM
icky feeling which manifested itself in all
directions. The first failures published were
| those of Nelson Robinson & Co. and COTE &
Randle. Soon afterward it was known that
o. NJ. Bogart & 90. had suspended This
announcement was soon followed by the sus-
per sion of J. @. Williams. The excitement
was greatly intensified when it was first wbis-
pered that Hatch d Foote had been compelled
to cease business, and almost Immediately
afterwards it was rumored that the Metropol-
itan bank had closed its doors. This rumor
was premature, but it was not long before it
became a fact and the doors of the bank
were actually shue:. The street was
wild with excitement and it seemed
that another black Friday had cast its bale.
| full light upon the financial horizon. Men
| and boys were rushing about, forcing their
| ways through the crowds that stood wedged
| in the streets about the Exchange. The
news of the disasters seemed to haye spread
| with wonderful rapidity. Private carriages,
| with iveried servants from the uptown
districts
WERE SEEN FLYING THROUGH THE STREETS,
| and many stood outside the doors of the
| various banks and banking-houses The
directors of nearly all the banks were either
| in session or present in their buildings ready
| for any emergency. The doors of the Stock
| Exchange were guarded by policemen and
| the visitors galleries were cleared. No one
was admitted to the building except mem
bers, clerks, and messengers. This was done
| because the crowd endeavoring to get admit.
| building.
THE FIRST FAILURE OF THE DAY,
that of Nelson Robinson & Co., was caused,
according to the statement of Mr.. Robinson,
| by the general shrinkage OF securities, the
| disturbed condition of the times, and the cir
| culation of disquieting rumors. He was un-
able to furnish any statement of liabilities
and assets. Most of their loans, he said
were well protected, if the holders did not
| lose their heads and want to get their money
in day. Mr.. Randall, of COTE & Randall,
said their failure was due mainly to the
| troubles of Dyett & Co. Orlando M. Bogart,
| of o. M. Bogsrt & Co., said their suspension
was due to the indirect influence of the
Grant & Ward failure, the shrinkage in Sc
curities, the many calls on the firm for mon
| ey, and losses through outside parties. The firm
was simply unable to Withstand the general
pressure upon it. He could not make any
statement of assets and liabilities, but he
knew that the present condition of affair s
was bad. The firm had been established, he
said, for at least twenty. five years III as
signee, Mr.. Wheeler, said that he had unex-
pectedly been called to his position, which he
had accepted reluctantly, and that he was I'M
able to give any information as yet in regard
to the firms affairs. Bogart & Co. give
preferences for $55, 600.
THE SUSPENSION OF JOSEPH O. WILLIAMS
was announced early in the day. He had
not be en- large Spectator and the number
of his creditors is probably small.
THE FAILURE OF HATCH & FooTE
caused great excitement, as the firm has
long been prominent on the street. Mr..
Foots said the failure was due to the embar-
rassment caused by the shrinkage of securi-
ties, some of which belonged to the firm,
while others were carrie for customers. The
firm made an assignment to Henry W.
| Reighley, and the liabilities are thought to
amount to half a million. But the greatest
sensation of the day came when the news
| was announced that
THE METROPOLITAN BANK had SUSPENDED.
The first news came that the suspension
had been ordered by Mr.. Seney, the presi-
dent, in order to prevent run for which
the bank might not be prepared. The fail
ure is generally supposed to be due to the
railroad speculaiions of President Seney.
The bank owes the clearing house $780,
600.
AT THE MEETING OF BANK PRESIDENTS
this afternoon a committee was appoint
ed to examine the assets of the Metropolitan
bank and ascertain its actual position. The
committee was instructed to assure the bank
tuat if the examination proved satisfactory
the associated banks would do all In their
power to allow the Metropolitan to resume
business The committee at once proceeded
committee also adopted the following:
Resolved, That in view of the present
crisis the banks of the Clearing House sssool-
alton, for the purpose of sustaining each
other, do appoint committee of five to re-
ceiVe from the banks members of the associa-
ton bills receivable or other securities to be
appropriated by said committee, who shall
| be authorized to issue therefor to
such depositing banks loan certificates bear
ing interest at six per cent. per annum, not
| in excess of seventy five per cent. of seoul
rites or bills receivable so deposited except
in the case of United States bonds, and said
certificates shall be received in settlement of
balances at the clearing house.
THIS ACTION HAD A GOOD EFFECT
on the street. Superintendent Camp, of the
clearing house said to q reporter: In 1873
We made the fatal mistake of not appointing
q committee on the hrst day. Deferring
action was disastrous l hope this
trouble will be over tomorrow and we are
doing our best to end it." Il is agreed by
all that the scenes of excitement in and
around the Exchange to day equalled those
of 1873 In the midst of the panic, how
ever, a few cool headed ''old stagers" were
observed to be buying large amounts of
stock at around the lowest figures touched.
BRApsTREET's SAYS HATCH FooTE
had been in business eighteen years and had
never before been seriously embarrassed.
They were supposed 20 pc worth $ooo'oUo
They we're great bulls in the market and
have lost heavily One of their Washington
customers who sold out his long stock last
week and went short is said to have
made 800, 900 profit by the turn, but this is
swept away with the rest of the firms losses
The firm had large patronage in Washing
ton including judges, senators, representa-
tives and politicians. Donnell, Lawson d
Simpsons failure was due to large deposit
being looked up in the Metropolitan bank.
They did large business in State. county
and municipal bonds and were the financial
agents of Missouri, Kansas, Nebraska and
other western States. The senior partner,
Robert Donnell, is of the firm OF Donneli,
Clark 4 Larabee, bankers at Butte City,
Mentans, and part owner of the First Ma
tional bank of Deer Lodge, Montana. The
firms credit was high. 0. M. Begart &c Go.
were extensive dealers in ''gilt edge" dry
goods paper.
TIE PANIC AND FAILURES IN WALL STREET
was the sole topic of conversation in uptown
hotels tonight At the Windsor, the Bruins