New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-06-25
A BANKING HOUSE FAILURE
SUSPENSION OF MATTHEW MoRGANs SONS.
IIABIIIrIEs UNKNowN-THE TROUBLE DUE TO DE-
pprcyATION OF SECURITIES.

LIABILITIES UNKNOWS-THE TROUBLE DUE ~ IN
PROBATION OF SECURITIES.
To the surprise of most brokers in Wall Street,
fhe suspension of the banking house OF Matthew
MorRan's sons at No. 80 Wllliam-st. was announced
Yesterday The liabilities of the firm can,
not be estimated, but as It was not connected
directly with the Stock Exchange, and is not SUP
posed TO be involved in any pending transactions
no unfavorable effect was produced ON prices ny Tue
IN. firm is one of the oldest in the Street, and for
many years it has enjoyed the reputation OF being
extremely conservative. Matthew Morgan, the
original founder of the firm, at one time a
prominent Wholesale druggist in New;Or;;
two banks IN that city and to have
been interested prominently in the state finances
of Louisiana. He came TO New-YOrk in 1Sl2 and
made heavy investments in real estate, al
though he was never speculative operator IN mat
tion with dickson W. Field, and his sons stu own
part interest in the property Entering me 9ahN-
New-oreans Canal and Banking company ana
OF the Mechanics and traders BANK oil
New-oreaps. He had FIVE sOns-H HdI
was admitted as a partner in his fathers business
on October 3, 1888 under the firm name of Mat
thew Morgan q Son.. On January l, 1859 Mat
thew. ill., and Edward Morgan entered the concern
and the name became Matthew Morgan d Sons
The firm was dissolved on Oct9Der ~, l s1 1 ana
. The business was carried on from November, II,
1862 under the firm style of Mstthew Morgan's Sons
with Henry. Edward aDd Charles Morgan as part
ners. Charles died III October, 1872 ana the inter
est of his estate in the business ceased by lmla-
tlOn july l.. 1878. Inc TWO SURVIVING pdltusiS
continued the business, Henry Morgan being the
most active member. He was understood to mold
two-thirds interest in the concern. The hrm ana
large general banking business ana mad
been successful mp to within few years.
The "boom" of 1850 appears to have car
ried the firm away from its conservative moorings.
They became interested heavily in the Denver and
Rio Grande Railroad, the Continental Construction
COMPANY which collapsed with the failure of
ton. Hoosac Tunnel and Western Railroad across
the State of New-York to Buffalo; the Mexican
n 4
other properties which have suffered great shrink
age in value. The Street has also credited the
frrl with recent heavy losses in Union Paclhc,
st. Paul and Western Union. These opera
tons exhausted the resources of the hrm,
and suspension was ,preeipltSted by heavy sales
on Monday of st. Paul and other stocks which l.,
Won Hoffman * Co are believed to have been carry
ing for them.
Henry Morgan. member of the firm said:
We have suspended. There is nothing to he said.
The suspension caused by the shrnkage in the value
Of nt y fs apd liabilities aTe WEE cannot sa
vet the present condition Of the market Is diicut
When the firm will be prepared to statement Of
Its condition
An official of a Southwestern railway said with
reference To the failure:
In 1873 the firm of NJ Morgan's Sons subscribed for
and purchased considerable amount of the consolidated
bonds OF the Denver and Rio Grande Railway Company,
stock. Later the firm went into pool TO purchase an
price OF the two was 165. In other
words this would :, be par n for ,o the if. bonds SSd
Ing. prior last two years would have realized
handsome profit If has held until The present time 1t
must have lost heavily The first mortgage bonds OF the
road are now selling at 80 tn inc n nisT
mortgage at o. The sioc which has sold high as 1It
yesterday sold low as z Til. decline IN values would
s Sg ns Of the stock " or bonds Tie firm was
in the National Railway Construction Company
and subscribed for considerable amount Of the bonds
snd stock of the road These have also suffered large
depreciation in values within eighteen moSths Inc STOCK
wan probably given with the bonds, but the
latter have fallen market value very much from the
sa6:cpGn e ana hs OPERATIONS ts in these tSS
tchenss viii probably he found TO be the moving cause OF
the firms suspension.
large part of the fortune of the Morgan brothers
was secured by their connection with the New
York Providence and Boston Railroad, which con- |
trolls the StOnlngton line OF steamers me COM
panv was the result of a consolidation IN 1888, ana
from the inception of the enterprise to the present
time the firm has been the fiscal agent Of the |
The sale Of numerous small blocks of stock but after
th. firm got control of the property dividends were
resumed and the prosperity of the company mas
continued without interruption: The finn at one
time lost heavily in Columbus, chicago ana |
Indiana Central securities out evehIH1aIy Sot |
out OF the enterprise without loss. once also |
the firm was correspondent OF the New |
Orleans firm Of A. CalIlere N Son, Whch !
inion and CIV banks and e. J. HsmDso & SON. in
Paris 4. n NJ. Heme, MarcuaId, Andre ~ Co." ana
Thc members of the firm have excellent social
connections in this city. 4 daughter OF Edward |
Morgan married August Belmont, IT,; son OF |
August Belmont. the banker. and daughter OF |
Henry Morgan married Mr., Post, who Is said to be !
connected by marriage with Brown Brothers N Co. |
Henry Morgan lives IN handsome mouse at no |
. West lhTy-tourth-st.. and the house OF "a
ward Morgan Is No. 32S Filth-aYe The latter
owus country scat at Great Neck, Long Island,
the Improvements on winch are SAID to have cost
100000.
HARLEM BRIDGE WRECKS A TUGBOAT.
The tugboai Titan, belonging TO the St9rn
Transportation Company, steamed up the Harlem
River from Blackwell Island yesterday, with