New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-15
FAILURE OF HITCH & FOOTE.

THEIR LIABILITIES ESTIMATED AT FROM $lVOO'-
600 TO $1,000 000-AN ASSIGNMENT MADE.
The announcement of the SUSPENSION OF hatch "
Foote. bankers and brokers at No. II Wall ST.
fell on the street with the effect of thunder-bolt
The excitement over the previously announced
failures, which had reached a fever-heat thar 1t
seemed difficult to increase, ran still higher Wheh
this news became officially known. The reputation
of the house has been so good, and ITS staDity so
unquestioued that in a moment the most dreiul ap
prebensions of a universal crash flooded mems
minds In few moments a crowd had collected III
front of the FIRMS office, while inside customers and
brokers and brokers clerks thronged thckly to as
certain what the position of affairs was. AS the
news was carried uptown other large customers
hurried to the place. The members OF the hrm
however shut themselves up IN the back Offices ana
left to friends and clerks the work OF answerngt the
numberless questions which were put to them.
Both partners strictly refused to sec any reporters
but late in the day the following statement was
given ont as oiicial
Owing to the shrinkage Of securities. customers falling
TO respond 10 calls for margins and the iact thar no
market exists for good securities we could protect our
customers better by suspendinS than in any other way
Late in the afternoon assignment was MAZE
bv the house TO Henry W. Reighley, the head book
keeper. Mr. Reishley was too busy arranging the
firms accounts to make statement. The assign
has had charge of one of the departments OF the
firms business said regarding the failure:
The firm has made an assignment without preferences,
but it confidently believed that the suspension VIII De
only temporary IL is impossible even TO approximate
the amount OF the firms liabilities. b1I am sur f
their Will more than meet al me opIgaltos
railroad bonds and mportant amount Is represented
by Government bonds know OF some creditors VINO
claims Yes il is true that the house went
through 1873 without falling but the aiHeT +.
th tbe Arm was not doing the stock business which 1t
has been doing OF late. 1t Is not true that the action
checks precpitated the failure. It felt that in the
dsordered condition OF the market the best step Unst
could be taken to protect themselves anu tne
would be by closing
ESTIMATES OF THE LIABILITIES.
Those who are somewhat familiar with the buSl-
ness done by the firm estimate its liabilities at from
81 900 900 to 600 900. OF course this sum VIII be
largely reduced by the assets of the hI but the lg
norance of what the character of these assets may
he precludes the possibility of making any reason
able estimate Some estimates put the net liabli-
tics at $500 600 but the fact that the firm have been
laroe dealers in Government bonds lends support to
the hone of their friends that the failure will not
prove 10 be a bad one.
The firm is composed of Daniel B. Hatch and
Charles b. Foote both of whom are members OF the
| Stock Exchange. They were born IN Bridgeport
Connecticut, Mr.. FOote being several years older
| tban bis PARTNER. but both men are under forty
| voars of age Coming to this city when
youpe men they were trained to the banking bust
| zoos in the firm which now ia known as Fisk &
| Hatch d. b. Hatch however, is no relative OF a.
| : Hatch q member of the latter firm and the presl-
| dent of the Stock Exchange. The young men
| ranidlv made their mark with Fisk ~ Hatch, dis
diminishing themselves by their activity and busl-
| ness acumen and Judgment. On January l, lS6|,
Nessrs. Foote and Hatch formed the present firm
| the principal capital being put up by a wealthy
resident of Glens Falls n. Y, named johnson. 1t
| did not take long for the hrm, start
| ing under the auspices of Fisk q Hatch
and with business reputation already high In the
| Street to secure many customers and to develop
| line business. At the start and up to within few
wears the concern confined itself to transactions IN
| Government bonds. It's business ran up among the
millions but as the margin OF profit on such
transactions is generally small, the profits Of the
firm were not what might be imagined from the
amount Of their gross dealings. The success Of the
house was so marked that about ten years agC
the present firm was formed Mr.. johnson retiring
In the funding operations of the Treasury De
| partment under Secretaries sherman and Window
Hatch & Foote edlargciI talingan important
part either directly or through larger firms than
themselves in the placing of the ll2, and 32 pei
cent loans. They are supposed to have made sew
eral hundreds of thousands of dollars out Of thei
| interest in these transactions.
| STOCK OPERATlONs--A RAILROAD COLLAPSE.
The safety of their business and their dsconnec
ton with any large stock operations carried then
through the panic Of 1878 without suspension
Their stock business practically began in 1879 an
was largely extended in the great rise In prices 4
| 1880 The firm made much money TO
themselves and their customers at this Tins
but they have borne numerous losses during tn
shrinkage since July. 1891. The house has bee
Confined Four'h Pnge]