New-York tribune., 1884-02-19
FAILURE OF STOCK BROKERS'.
MoGINNIs BROTHERS e. FEARING SUSPEND.
A DEMAND FOR $4,000 NOT MEr-rrE FAILURE

A DEMAND FOR $4,000 NOT MET-THE FArLURB
NOT WHOLLY A SURPRISE.
The failure OF McGinnis Brothers & Fearing was
announced at tine Stock Exchange just before the
close of business yesterday. II was stated In the
letter of the firm announcing its inability TO
meet Its contracts that its liabilities to
members Of the Exchange were small. Tho
fact that the three members of the firm were also
members of the board an assurance that all the
debts MT the Exchange would be paid in full. The
announcement had less effect the market, there
fore, than it otherwise would have had although In
the last few minutes Of business the stocks in which
the firm was generally supposed to be interested
declined rapidly. There were no transactions under
the rule for the account of the suspended firm.
CAUSE OF THE FAILURE.
The immediate canse Of the failure is said to have
been peremptory demand by the Oregon and
Transcontinental Company for the payment Of
some $7J 900 which the firm owed it. The origin
of the debt could not be learned definitely, but it
was said in behalf Of the firm that the decline
i'll the stocks of the Northern Pacific system had
caused its failure 1t labored under considerable
embarrassment last fall in consequence Of the de-
cline in tle stocks but 1t is reported that Henry
Willard, who was then president of the companies,
helped the firm over its difficulties. The present
Indebtedness is supposed to be a balance
of account which has not been settled since
that time William Endicott, jr., of Boston, who
succeeded Mr. Willard president of the Oregon
and Transcontipental Company is said to have de-
manded an immediate settlement of the account OH
Saturday before he started for home. He was not
in New-YOrk yesterday.
II was said by person familiar with the affairs
of the company that the only explanation of the
debt which he could give was that the firm had
been used by the new president in much the same
way in whic Mr.. Willard had used IT, He intimat-
ed that the company had been buying the stocks OF
the Northern Pacific system through the firm, and
that on demanding delivery of the stocks which it
had bought, the firm had been unable to furnish
them.
The failure was not wholly unexpected because of
the difficulties under which the firm was known 10
be struggling. The liabilities are mainly 10 GUS
toners of the firm, whose margins aud profits have
supplied it recently with a working capital. The
amount could not be approximated even yesterday.
The known debts are the small engagements at the
Stock Exchange, the obligation to the Oregon and
Transcontinental Company, loan of $4,000 at
the Fourth National Bank, which is secured by
ample collateraIs, and something over $4,000 due
George NJ. Pullman on account.
MR.. PULLMASs RELATIONS WITH THE FIRM
Mr.. Pullman is said to have been one of the larg.
est customersof the house and when the failure
first announced il was rumored in Wall Street that
it was due mainly TO his connection with the firm.
Ii was soon learned that Mr.. Pullman was cred.
itOr and not a debtor, but that within a few days
he had taken up the stock carried for him by the
frm 1t was rumored also that the recent heavy
decline in Pullman's Palace Car COmpany's stock
had been caused by the forced sale of stock bought
by the firm for Mr. Pullmans account. Speaking Of
these rumors, Mr.. Pullman said yesterday:
have not sold any stock for at least year. not
only the largest sockholder but hold stock now
than did before have bought SEQ shares today
a the low prices which are current do not know how
much stock the firm may have been carrying FOR ts
Chicago customers, but the amount could NOT
9e over 1000 or possibly :, 1900 shares
shore aud slightly in Northern Pacific stocks in adj
don the stock. but for several weeks have been
taking up the securities, There is small balance OF
something over 10000 due me from the trm That is
the extent Of my connection with the failure.
very sorry that the firm has been obliged to sus.
pend. have known John McGnni1 Intimately FOR long
gave the firm Il large patronage there
STATEMENT IN BEHALF OF THE FrRM.
The members of the suspended firm declined to
make any statement regarding the suspension, re-
ferring iDquirers TO an intimate friend, WE'LL
known member of the Stock Exchange This gen.
tleman said
No assignment has been made and it is expected iat
the firm will be abe to resume business in short time
The liabilities and assets cannot be estimated,
Exchange. No sales have been made under the
rne and none will be made (exoept possibly OF
Elements have been arranged Of most Of the Exchange
contracts. No, the suspension is not due to losses on
grain produce and the Chicago correspondents of
the house vll he affected by the failure Their bus-
in grain and provisions has been strictly commits
The failure does not affect the present po-
sOn of the stock market ii Is due 10 losses sustained in
the Northern Pacific stocks in last August IL was pre-
cpitated pressure brought against the house ny the
Oregon and TranscOntnental Company. The ffm owes
about S75 5OO0 understand TO that cOmpanyand II was
action regarding this Indebtedness which prevented the
firm from successfully bridglng its troubles over.
o. d. Baldwin, president of the Fourth National
Bank, said that the suspended firm owed the bank
$4,000 but the loan was abundantly secured by
collaterals. He was completely surprised at the
failure as he had not the least intmation that the
house was in trouble II began business in the
morning with handsome balance; a larger one IN
fact, than it had earned for some time
SKETCH OF THE HOUSE.
All the members of the suspended firm are meu-
bers of the Stock Exchange Mr. Fearing being the
oldest member of the three partners The brm has
existed under it's present title for seven or eight
years, The McGnns brothers began busi-
ners in Wall Street in 1854 as members
of the house of Smith, McGinnis X Co., who
did large business as Government brokers In gold
and bonds. few years later the concern beeame
Dean, McGinnis q Co., Mr.. Dean retiring some h,
McGInns Brothers until the present copartneTshp
was formed. The house has stood high IN wall
Street not only as regards its financial strength
but respects the popularity OF the members. ls
capitalists as its clients. Among these nave been
Russell Sage, Henry Willard aud George VI. Pull
man. The failure is the first IN the history OF the
house, which has passed through many severe
periods OF depression aud financial storms.
CH4PGES AGAINST 4 COTTON FIRM