The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1884-05-15
Failure of Jas. R. Keene.

We mentioned last week the failure Of
]. r. Keene, the great New York gran
speculator. Below we give some particu
lars of his business and life:
1t was learned that the failure was due
| to the fact that Mr.. Keene had for some
time past confined his stock operations to
transactions in privileges, and the selling
OF puts and calls. A large number of
these contracts fell due on Wednesday,
and 1t was said that Mr.. Keene began that
morning paying them off, and after spend
ing $150, 900 in cashing the differences re-
sulting from a falling market, he found
himself running short, and having no more
money at his command, was forced to re-
fuse to take the stock that was put to him.
1t is understood that Mr.. Keene 3 trans
actions have been principally in the stocks
of the Erie, Western Union and Union
Pacific companies. 1t is also said that he
was severely bitten in the recent shrinkage
OF values in the Northern Pacific and
Oregon and Transcontinental stocks. He
refused to see any reporter, and at his
house Wednesday evening it was said that
he had gone out of town. This statement,
however. was issued for publication, and
was made to an Associated Press reporter:
AFTER paying out millions of dollars
cash in the last few months in my efforts
to protect my privileges in falling
MARKET / have finally determined to-day
to call a halt, in the interest of those with
whom have business.
JAMES r. KEENE."
Shortly after the announcement of his
inability to meet his engagements Mr..
Keene was offered by a number of his
friends and business associates the use of
$4O0, 900 in cash, but he refused to accept
it, saying that he did not propose to make
matters any worse by keeping up his
margins any longer. The failure was the
absorbing topic Of conversation among the
brokers and bankers who assembled We'd
nesday evening at the Windsor hotel.
Z One who has been intimately associated
with him in his affairs said that Mr.. Keene
had paid out $400, 900 in cash during the
past two weeks to keep up his margins,
and 81 100000 within the last two months
for the same purpose. He knew that his
failure was an absolute one, and that he
hadn t cent left in the world over and
above his debts.
John Bloodgood, the banker and broker,
said :ssI have never had any dealings with
Mr.. Keene, and don't think any strong
house has within the past two years. For
six months or year past it has been gene
rally we'll known on the street that Mr..
Keene was very weak, and his failure was
discounted, SO to speak. / for one never
had much confidence in his operations, not
but that he was perfectly honorable, but
he was too impulsive. 1 have no doubt
but that he is absolutely ruined, and am
sorry for him. 1 do not think his failure
will affect the stock market at all.
Another of Mr.. Keene's associates, who
was formerly his broker, said that all of
his friends property had been sacrificed to
the last cent. Mr.. Keene, he said, while
in San Francisco, learned privately of the
discovery Of the Big Bonanza. He quickly
purchased as much of the stock as he could
lay his hands on, and when he sold out it
was at q handsome profit.
After operating in Yellow Jacket heavily
he closed out his business and went to
New York in 1876 with $3,000,000. He
further said that in 1879, when his rela-
lions with Mr.. Keene ceased, that gentle
man was worth SO, 900, 900 in cash. $1,000
900 of which was on deposit in his office.
The amount of stock which Mr.. Keene
has been holding is estimated at from
175. GOO to 250. 900 shares.