The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-06-25
BUSINESS DIFFICULTIES.

Suspension of the We1l-KnOwn Banking
House of Matthew Morgan's Sons.
NEW YORK, June 24-Matthew Morgans Sons,
bankers, have suspended. The firm were not
members of the Stock Exchange. They are
known as merchant brokers, and drew exchange
and dealt in securities not on the stock list The
suspension is attributed to shrnkage in the value
of railroad bonds, principally Denver & Rio
Grande, of which they we're large holders at
high prices. Edward Morgan is expected from
Europe in a few days. Their liabilities are
mainly due on Change, but they have no
liabilities on the Stock Exchange. The members
of the firm are large real estate owners the
New York Hotel being one of their holdings,
and it is believed their inability to realize on
real estate is the immediate cause of the suspen-
sion.
The house has been doing business in this city
for thirtyfive years The members came orig
inaly from New Orleans. They have always
been correspondents of several London houses.
They were rated at 81 900, 600 The suspension
is due to the shrinkage of values at the Stock
Exchange The firm was identified with the
Denver & Rio Grande and the C., c g. l. c.
railroad companies. Morgan was formerly
director in the Denver & Rio Grande. Thehouse
gained considerable notoriety for its opposition
to the Pennsylvania company some years ago,
in the c. c. 4 l. G. litigation. Eventually the
firm sold its holdings of c., c. e. ]. c. bonds,
amounting to $400, 900, at 129, after it had of
fered them at 100. This transaction was the
talk of the street at that time. The house dealt
extensively in exchange.
The Post says: "Great surprise was created
in Wall street this morning by the announce
ment that the banking house of NJ. Morgan's
Sons, 80 Wall street, had suspended The house
is one of the oldest banking firms in the city,
and was founded by the late Matthew Morgan
fifty years ago 1t was formerly known as
Matthew Morgan & Sons Through a brother
of Matthew Morgan the firm began with an
tensive New Orleans connection, which it always
retained The firm did a general banking bust
ness and was interested in other enterprises.
including it is said, the cotton trade. Their
standing i'll business circles was always Very
high AT the Office of the firm no statement
could be obtained in regard to the cause of the
suspension the amount of the assets and
liabilities. The failure had little effect on the
stock market which, independently of this, had
been very feverish and excited throughout the
morning. Messrs. Edward and Henry Morgan,
members of the firm, are individually large
owners of real estate in this city.
The assignment was made to protect all cred
itors equally. The correspondents of the firm
are the Union and City banks in London. and
A. NJ Hene, Marcuard Andre & Co., and Hat
tenger & Co. in Paris. They have correspondents
also in all parts of Europe. The social con
nections of the members of the firm are very
wife of August Belmont, jr.. and Henry Morgan
is connected with the family of Mr.. Brown, of
Brown Bros g. Co., by marriage.
C. f. Woerishoffer who is prominently iden
tilted with the bear interest when interviewed,
to-day in regard to the situation in Wall street,
said: Il regard the failure of Morgaus Sons
as very serious. 1t was an old house and greatly
respected, 1 don't think it will have a
great effect on the stock market 1t
is more of commercial disaster
did not anticipate any more failures at pres
ent, although think stocks will go lower" Re
garding Gould's position he said: Gould can
not fail; he has lost great deal of money, but
has plenty left Any thing may happen. Gould
may go under; this house may tumble down, but
I am taking my chances on it. don't intend to
move" The market, Mr.. Woerishoffer said,
looked bad, and he acknowledged that he felt
blue
The insolvent schedule of Thomas j. Crombe,
lumber dealer, was filed to-day. Liabilities,
sos 000 nominal assets, ST.. 900; actual assets,
$75, 900. The principal creditors are d. C.
Coney. $50 900, with no security Max Danziger,
$13 600 with no security; Fifth National Bank,
1928 000 Mount Morris Bank, $32 900.
The insolvent schedules of Julius F. Diberg, a
merchant show liabilities of 4,000 nominal
assets, $15, 900; actual assets, $4,000.