The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1885-10-09
a BIG COLLAPSE.

Another Heavy Failure in New York Lin.
b,lities Nearly Two Millions Gould
Among the Victims.
New YORK, October 3-The suspension
Of William Heath & Co. was announced on
the Stock Exchange yesterday morning.
Alexander 4 Green, rs counsel for Giovanni
P. Morosini, to-day obtained from Judge
Donohoe, in the Supreme Court, an attach
n,ent against the property Of William Heath
& Co. Mr.. Morosini says in the affidavit
upon which the attachment was granted
that for several years he has had $780, 600
in cash on deposit with Heath & Co., sub
ject to his draft, and that the only debit
that could properly be made against that
amount was for z, $50 shares of the capital
stock OF the Manhattan Railroad Company,
of the value of $780,, 900, and twenty-five
second mortgage bonds Of the Metropolitan
Elevated Railway Company. Of the value Of
S2S, 900, which he had ordered the firm to
purchase for him, making an aggregate Of
S215, 600. He claims the firm Is in debt to
him S265, 600 i'm cash, and that it also holds
these stocks and bonds for him. Mr.. Moro
SIM declares that he called at the Office Of
Heath & Co. yesterday for his money and
securities, aud received in reply that the
company could not deliver them. as
the securities had been hypOthecated or
sold and the money had been otherwise dis
posed of. He AYERS that he never author
lied Heath & Co. to make use of his money
and securities, and charges that they have
assigned and disposed Of the property
with intent to defraud him and their cred-
itOrs generally. Charles E. Quincy, one
of the members Of the firm. Mr.. MOrosini
states. has been in Europe for several
months past. lie believes he is not resi-
dent of this State. but Of some country in
Europe unknown to him, and also attached
whatever property he may have in this
State. The principal creditor Of William
Heath 4 Co. is Giovanni p. MorOsini, a
partner of the well-known firm of w. +.
COnnOr & Co., who became famous by his
connection with Jay Gould. His claim
against the firm is about S55O,OOO, for
which hs has 10 security of any kind.
Among the other large creditors are Jay
Gould, $3.50, 600; James T. Low, formerly
of the dry goods firm Of Low, Hartman l.
Co., father of the present head of the firm.
about 100000: Addison Cammack, $780,
600. and William L. Scott of Erie, Pa,
$4,000. In addition tn these, the firm of
Soutter & Co., which failed OH Tuesday. is
said to be a creditor to the extent
Of about S2JO.ooO, in consequence of
Its dealings with Henry N. Smith. The
liabilities of Heath & Co can not fall short
Of 81, SOC, 900, and may exceed that sum.
The assets, excepting the claim against
Henry N. Smith are unknown. The
claim amounts, it is said. tn about 81 200. 900.
while the bulk of his liabilities is to the
brokerage firm. 1t is known that he owes
c. I. Hudson & Co., more than 100000.
He is also indebted to WOerishOffer IL Co.
for still larger amount. 1t was estimated
by good judges that Mr.. Smiths iiabil ties
would not fall below 100000. His assets
are supposed to be nominal. Speaking of
the failure Mr.. Smith said: "My operations
have dragged William Heath down and
am more sorry for him than myself. But
have not deceived him at any time and he
has not deceived me. lsuppOsed that he
would De able TO carry me through and he
said he could do it successfully. Even this
morning he expressed his confidence In
being able to pull through. There IS notl,-
ing in the rumnr about joint account be-
tween me and WOerishOffer. We did have
joint account in Heatli's Office, but it was
closed early in August. think my mis-
fortunes are my own, but shall be on my
feet again, and perhaps very SOON"