Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1884-05-01
KEENE'S BREAK.
The Great Wall Street Operator, After a
Strong Effort to Keep Up His
Margins 49,
On Failing Market, Gives up the
Fight-No Statement Yet Made
as to
His Liabilities, Although II Is Supposed
They Must Run Up Into the
Millions.

New YORK, April 30.-The announce
ment at 3 o'clock pm. of the fail
ure of James r. Keene, the well-known
Wall street operator, was received
by many with incredulity. 1t created at
first tremendous excitement among the
smaller dealers and operators, who had
apparently not anticiDated such a result.
The effect on tie yitarket vas not appre-
eiable, as the announcement came 60 late
that very little accurate information could
be gained in regard to the failure, although
ru;nors of the most contradictory charac-
ter were circulated in great numbers. 1t
was learned, however, That keene has for
some time confined his stock operations
to transactions in privileges and selling
PUTS AND CALLS.
A large number of these contracts fell due
too day, and it was said Keene began this
morning paying them Off, and after spend
ing $4,000 in cashing the difference re-
sUlting from the falling market, he found
himself running short, and having no more
money at his command, he was forced to
refuse the stock rendered him. The news
spread, and soon his Office was besieged
with customers and creditors, who fought
with each other to gain entrance. His secre-
tary, Mr.. Wells, confirmed the report OF his
failure to meet his engagements, and said
that owing to unfavorable speculation, Mr..
keene would not make a statement to the
public at present, but would furnish a
statement at an early day to those who are
interested in his affairs. His transactions
have been principally In the stocks of the
Erie, Western Union and Pacific Compa-
nies. He was severely bitten in the recent
shrinkage in Northern Pacific and Oregon
Transcontinental stock. He refused TO see
lan ot TO- Io., Il "a
his house this evening it was said he had
gone out OF town. and Was probably in
Newport. Later in the evening, how
ever, the following statement was issued
for publication to the Associated Press
reporter:
KEENE's STATEMENT.
+ After paying out 81 100000 cash the last
few months in my efforts to protect my
privileges on falling market, | have fin
Tally determined to-day to call halt in the
Interest of those with whom have bust
Iness. JAMES II. KEENE.
Shortly after the announcement of his
Inability to meet his engagement, keene
was offered by number OF friends anc
business associates, the use of S400, 600 il
cash. He refused to accept it, saying tha
he did not propose to make matters any
lworse by keeping up his margins any
longer. The failure was the absorbing
ltopic of conversation among bankers anc
brokers, who assembled at the Windso
Hotel, and various comments were heart
lby those who had been friends or oppo
Iuents of the great operator.
| In theadayssof his prosperity Keene
bought Matthews villa at Newport, anC
spent his summers there. This was de
stroyed by fire and never rebuilt. Keen,
owned little real estate beside his New
port property, and that was heavily mort
gage1. He had at one time owned som,
costly paintings. Jay Gould took the bes
of them, Rosa Bonheur, off his hands a
a price much less than Keene paid 70
it, and it now adorns Gould's parlor in hi
Fifth avenue residence, where it has oftel
reminded Wall street visitors with fanci
ful turn of mind, of the Indian custom O
exhibiting the scalp of the vanquished TO
In the most conspicuous place in the wig
|