New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-04
young men aferward made their escape but were sub.
sequently arrested. The Mayor fined Malone 800 ana
put him under bond OF 5000 to keep the peace six
months Williamson and BeicEer were fined S25 each and
bound over for six months In the sum OF $780,
THE WALL STREET FAILURES.
DISSOLUTION OF C. I. HUDSON & co.
FIRM IN WHICH SMITH WAS SPECIAL PARTNER
ILY cnI.I n,s nrI LrInNs WILL HEATH 4 CO.

A FIRM IN WHICH SMITH WAS SPECIAL PARTNER
JAY GoULDs RELATIONS WITH HEATH CO.
The failure of William Heath Il Co. on Fri
day. in consequence Of the inability OF Henry Smith,
famous bear speculator protect his account with
the firm, has excited the curiosity of Wall Street
greatly. The liabilities of the firm are not
likely to fall much below S2,000.O0O and
the assets, 80 far as can DO learned
small to justify the belief that the
firm has lost large amount OF money on its own ac
count 1t Is understood that between one and two
years ago firm lost hoayiy in the arbrage business
between New-York and London. Mr.. HeatRs
reluctance to mako loss has been well
known, and 1t Is reported that III
the orbtrage trading through the London branch the
firm became burdened with large amount OF stock on
this When tho transactions proved unprofta-
BILE, they not closed promptly but the firm assumed
the risk of carrying the stocks Serious losses were SUI
fered in this way In Eric and in Philadelphia and Read
ing stocks They have LED to bitter litigation between
the firm and former manager of the London branch,
which has not yet been ended. considerable amount
OF assets Is locked up In the English courts.
A person acquainted with the affairs of tie London
branch said that tho losses Of the firm by 1t would
amount to over 100000. Heath & Co. specuated
heavily In stocks In London and professed to be doing
simply o commission business In NewYork
It was rumored in Wall Street that Of the cred
itors Of the firm would apply to the courts to have
receiver appointed place OF the assignee 1t said
in favor of this action that the assignee having been
the office likely to look more carefully to the
interests Of than those OF the creditors and
that circumstances attending the failure were such
make necessary great watchuness on the part OF
creditors they hoped to their claims Other
creditors continued to talk about the joint account be-
tween Henry smith, tho firms principal customer and
Charles i. Woerishoffer. who released from re-
sponsbility by Heath & Co., with the consent of Mr..
Smith, about three months ago. On delivering half Of
the stocks included in the joint account. Mr. woeris
hotter received release from further
liability The creditors assert that even II
technically the release is sound, 1t was
yitiaed by Mr. Woerishoers knowledge Of the matters
affecting the partnership property They said that tho
question might have to be decided in the courts
The only plain result OF the failure as the dissou-
ton of tho firm of c. l. Hudson & Co., of which
Hsgs Hsn MAS Smith TEN. S the Ssk ERshansc
that new firm had been formed By e. l. Hudson and
would assume all tho contracts Of the old firm. Mr.
Hudson vino has been absea from the city since the t
OF September. returned yesterday morning. he
declined to state the amount Of Mr rsSsrnbl1 SMtn.
more he said than the amount OF the special CAPT
tai but the loss will not affect have been away the
most Of the snmMsr In jqy tak M iS1nS Cdssd 1SsI I ws
contracts with us Since that time we have not done
moro than 900 shares OF stock for him. cannot tell
you how much he but it is more than the cap
| Henry r. Smith said " did not Withdraw my special
capital from the irm, stated In TIE TRIBUNE this
morning; but some time ago closed my account there
and now owe the firm balance something larger than
| my special capital At the ilmo, | told Mr.
| Heath that I had closed my interest in stocks
with the firm My relations with William Heath nave
always been OF the pcasanicst character and an more
sorry for msfortunes than for own losses baye
done business with him. off and on, for ten years,
| and doubt OF HIS ability 10 carry me
through never occurred to mo until recently
| Tnen 10 WAS too lato to change my position
IN the market. When the doubt the market was
against that 10 close sales would not nave
| benefited him. While never had been assured by Mr
Hysth Of ability To through inferred that he
| CodM do The statement published IN
| many OF tho newspapers to-day that l. owed
udlrcct In that ofice The haud-organ story In The
Bord old story revived. IL absolutely false
In the beginning and Ia st. never made any remark
about Mr.. Gould that could possibly be twisted into
| Mr. smith admitted that his debt TO William Heath &
Co was pre- ably 81 0OO but that lie could not
| yet say what the exact amount might be-
The liabilities OF Heath Co. at the Stock Exchange
In - .ttem0nts with the members are probably over
for dividends borrowed stock Will tOot hp nearly
$1,000 ono firm has nearly $1,000 OF due Dllls
| mostly on et. Paul.
Speaking OF the failure Jay Gould said yesterday that
he was surprised. have always had great con-
ndeuce in Mr.. Heath" lie said and considered him
sound sGfo man. On the day before the failure my son
teephoned 10 me uptown that Mr. Heath mao asked for
because he little short ana directed
! George to let him have it, -
IL is understood that recently Mr. Gould has been clos
Ing his accounts Ia many brokers Offices withdrawing
securities and balances but that he allowed the account
! with the broken firm TO remain undisturbed