Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-01
JAMES R. KEENE FAILS.
THE SHRINKAGE IN STOCKS
CAUSES HIS TROUBLES.

] 0AC0L4o IINOObLlElSs
Tremendous Excitement Caused by the
Announcement of the Disaster-No
Statement Yet Made PubIic-His Re
cent Dealings Mostly in Privileges
Erie. Western Union and Union Pacific
His Principal Stocks.
NEW YORK, April 3O.-James R. Keene
stated to an Associated Press representa-
| tive this afternoon that: Sin an effort to
maintain my position upon a falling mar
ket have paid out millions of dollars in
a few months to protect my privileges,
and finally determined to-day to call a
halt for the general protection of all with
whom L have business
| Francis Bassett, a privilege broker,
holding some of Mr.. Keene's puts on Erie
and Western Union, states that they were
not hOnOred on presentation to-day.
The announcement of the failure. at
| O'Clock this afternoon, was received by
many with incredulity. 1t created at
hrst tremendous excitement among the
smaller operators, who had apparently
not anticipated It. The effect on the mar
ket was not appreciabIe this afternoon, as
the announcement came so late that very
little accurate information could be
| gained in regard to the failure,
| although rumOrs of the most con-
| Trajectory character were circulated in
! great numbers. 1t was learned, however,
that the failure was due TO the fact that
Mr.. Keene has for some time past con-
fined his stock operations to transactions
in privileges. and the selling of puts
and calls. A large number of these
| contracts fell due to-day, and it was
said that Mr.. Keene began this morning
paying them off, and after spending over
| S150,000 in cashing the difference result
ing from the falling market he found him
self running short, and having no more
money at his command, he was
forced to refuse to take stock that was
put to him. The news spread rapidly,
| and soon his office was besieged with anX-
iOus customers and creditors, who fought
with each other to gain an entrance. His
secretary confirmed the report of his fail
ure to meet his engagements, and said
that it was owing to unfortunate specula-
tions. He said that Mr.. Keene would
| make no statement to the public at pres
ent, but would furnish a statement at an
early date. 1t is understood that Mr..
Keene's transactions have been princi-
pally in the stocks of the Erie Railroad,
Western Union Telegraph and the Union
Pacific Railroad Companies. 1t is
also said that he was severely
bitten in the recent shrInkage
and TranscOntinental stocks. Herefused
to see any reporters at his office to-day,
and at his house this evening it was said
that he had gone out of town, and was
probably in Newport. This statement,
however, was issued for publication, and
was made to an Associated Press re-
/ porter.
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
100000 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
this evening at the Windsor Hotel, and
various comments by those who had either
been friends or opponents of the great
operator.
One who has been intimately associated
with him in his affairs, said that Mr..
Keene had paid out $780, 900 in cash dur
ing the past two weeks to keep up his
margins and $1,500,000 within the last
two months for the same purpose. He
knew that his failure was an absolute one,
and that he had not a cent left in the
world over and above his debts.
John BlOOdgOOd, the banker and broker,
said: 81 have never had any dealings
Will MI. heSUe, anu QOnJ lniUk ludb
any strong house has within the past two
years. For six months or year past it
has been well known that Mr.. Keene was
very weak, and his failure was discount
ed, so to speak. l, for one, never had
much confidence in his operations,
not but that he was per-
fectly honorable, but he was
too impulsive. l have no doubt that he
is absolutely ruined, and l am sorry for
him. don't think that his failure will
affect the stock market"
G. f. WOerishOfer, a broker, said that
he did not regard the failure as one which
would affect the market.
MEXICO WRECKS A BANK.
CITY OF MEXICO, April 30.-The Ma
tiOnal Bank of Monte de Piedad, of this
city, the oldest financial institution in
Mexico, closed it's doors this morning.
There had been a run on the bank for sew
eral days, owing to an expectation that
the government would demand assistance
from it. This morning the government
made peremptory demand for a large
sum Of money and the bank Immediately
closed its doors in order to protect its
legitimate creditors, which it has ample
means to do. The affair has caused but
little excitement.