The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-05-16
matter.
FISK s. HATCH.
Causes of the Suspension of This Famous
and Widely -Honored Firm.

Causes of the Suspension of This Famous
and Widely-Honored Firm.
New YORK, May 15-After o'clock the
feeling was generally that the day would
pass without any further disasters, and,
when at 2:40 it was announced that the
widely known and honored firm of Fisk & Hatch
was unable to meet its obligations there was
great surprise and much sorrow. In less than
five minutes after the failure made known
from the rostrum of the Stock Exchange Nassau
street, from Pine to Wall street, was filled with
an excited crowd and the space outside the rallied
inclosure in the large office of the firm was filled
with brokers', brokers' clerks and messenger
boys, many of them with checks on the firm
No explanation of the cause of the failure was
given ',rhe firm has suspended payments"
was the only answer given to the avalanche of
questions
''Will it resumed" was asked by dozen
voices.
No one in the outer Office was found who was
willing to answer the question and inquiries Of
members of the firm failed to produce any re
suit. In short time several detectives came in
and the rooms were slowly cleared of the throng
the heavy iron doors were closed and police
trance. Only those having urgent busi
ness with the firm were afterward admitted.
For more than an hour Nassau street
in front of tho banking house was almost i'm
possible. The general sentiment was one of
profound sympathy with the firm. 1t acted with
marked liberality toward its creditors in the
years succeeding its failure in the panic of 1873
and paid all obligations nearly or quite in full,
when it might have escaped by paying only
small percentage of their face value.
Mr.. Hatch, the junior member of the firm
and president of the Stock Exchange, was seen
by Tribune reporter about ten minutes after
the doors of the banking house were closed. He
looked much worn and harassed. 81 have moth
ing to say at present" ne said in answer to an
inquiry as to the cause of the failure, and the
condition of the firm. Il am so Frustrated by
the occurrence that can give no clear idea at
present of our condition. We shall prepare
statement as soon as possible"
Mr.. Fisk only returned from Europe few
days ago, and he therefore knows comparatively
little of the details of the business during the
time he was away-one year
Fisk & Hatch handed the following notice to
an Associated Press reporter:
To Our Depositors and Other Creditors. 1t is with
great sorrow that obliged to announce to you
suspension, which has been brought about by
combination of circumstances. The long
continued decline in the market price
by general weakening of confidence
in financial matters together with heavy drain from
depositors are the principal causes of unfor-
tunate position We can only request those having
claims against us to extend TO such consideration
and indulgence may need and it may be in their
power to grant Very truly, FISK & HATCH.
The general opinion seems to be that the
failure of the firm was due, in part, to the fact
that it had been for years heavy investor in
first-class railroad bonds paying high prices for
them, and their inability to realize on this class
of securities without heavy loss was one element
of weakness. Several country banks had balances
at Fisk & Hatch's. Some of those, it was
understood. had made heavy drafts on the firm
partly on account of timidity at the financial
prospect, and partly to satisfy demands made on
them by their depostors. The attempts of Fisk
& Hatch to raise cash on their securities were
made futile by the peculiar condition of the
money market. The decline in prices of gov
ernment bonds was serious matter to them
William Lummis, who has become acting
president of the Stock Exchange, through the
failure of Fisk & Hatch, said: ''The failure will
have much less effect upon the street than is
generally supposed. 1t is unfortunate in that it
gives another shock to public confidence but do
not think it will involve any other house. The
firm have few contracts with the Exchange, and
there will not be many sales for their account
tomorrow"
Frederick P. Olcott president of the Central
Trust Company, said, in reply to the
Tribune reporters inquiries: II know
They have Seen trying to borrow
in regard to this trouble is that the only way out
is for the banks to loan money. The banks
should expand. They can do so. 1t is the east
est thing in the world. Fisk & Hatch had plenty
of government bonds. There are lots Of banks
ready to loan governments, but the thing is
that the day you want them you don't find
them"