Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1885-10-07
THE BIG FAILURES
OF HEATH & CO., AND H. N. SMITH
IN NEW YORK.
Statement of the Liabilities of the Firm
jay Gould's Assistance Refused
aFew Days Ago-Dissolution
of Copartnership.

NEW YORK, Oct 5.-The following state.
ment was made Saturday concerning the
failure of William Heath & Co: The liza.
bilities of the firm are placed at 81, 750, 900
to $4,000. 900, among which are the follow.
ing: G. P. Morosini $3.50 900; Jay
Gould, Sa60,0Oo; James I. Law,
100000; Soutter 4 Co., $3.50, 900;
Addison Commack, 500, 900; W. l. Scott,
$50, 900. The amount due i'll the stock ex-
change is estimated at 5000, 900. Mr.. H. N.
Smiths liabilities are placed at 81, 0O0, QUO,
of which 81, 250, 900 is due to William Heath
& Co, and the Woerischoffers are also re-
ported to be owed considerable amounts.
His assets are supposed to be nominal
Much surprise was expressed in Wall
street Saturday at a report that Heath &
Co had operated to a considerable extent
their own account in the "arbitrage" bust
ness between the New York ami London
stock markets, as it was generally supposed
that they had done n commission business
only. 1t was believed, however, that they
had lost but little money, if any, in these
operations. 1t was also reported that
Thomas E. Davis commonly supposed to be
still the London partner of the firm, had
been out of it for year or more.
While some people believed that the fail
ures would prove very bad ones others of
experience in the street took widely differ
emit view. The latter held that the suspen-
sions were not absolutely forced but that
expecting sharp advance in the market
Heath & Co. decided to suspend as the
readieSt and most favorable way of making
a settlement, as they were thus enabled to
buy in stocks at very reasonable figures
Persons who hold this opinion think that the
Mo dad fbe tI,a
itorss of Heath & Co. and of Smith will
lose very little in the end.
1t is now re ported on very good authority
that Jay Gould made an offer few days
ago to give Heath 6 Co. assistance to tide
them over their difficu ltiss supposing that
they would need only few hun.
dred thousand dollars to relieve
their embarrassment He asked however. it
is said for full statement of their affairs
as preliminary condition, and this was re-
fused. Nothing was done by him therefore,
and in any event the amount he offered tc
advance would not have sufficed.
Alexander s. Green, as counsel for GLOW.
ami P Morosini, obtained from Judge
Donohue, of the supreme court, an attach
ment against the property of William
Heath & Co. Mr.. Morosini says in the
affidavit upon which the attachment was
granted that for several years past he has
had S4S0000 in cash on deposit with
Heath s. Co subject to his draft, and that
the only debit that could properly be made
against that amount was for g $50 shares of
the capital stock Of the Manhattan Railway
company, of the value of Sl92 900, and
twenty-five econdmortgage bonds of the
Metropolitan Elevated Railway company,
of the value of $23, 900, which he had
ordered the firm to purchase for him, max.
ing an aggregate of S2l5,00 He claims
the firm is in debt to him 1866, 900 in cash,
and that it holds these stocks and
bonds for him. Mr.. Morosini declares
that he called at the Office of Heath & Co.
for his money and securities, and received
in reply that the company could not deliver
them, as the securities had been hypothe-
Gated or sold, and the money had been
otherwise disposed of. He AYERS that he
never authorized Heath & Co. to make use
of his money and securities, and charges
that they have assigned and disposed OF
their property with intent to defraud him
AMI their creditors generally.
1t was announced in the stock exchange
Saturday morning that the co-partnershir
existing between c. !. Hudson, A. P. De.
forest and Henry N. Smith (spscial. under
the firm name OF G. l. Hudson s. Co., was
dissolved, and that G. /. Hudson and A. 81.
Deforest had formed a co-partusr5hip. The
contracts of the old firm are assumed by the
new, and will be carried out, and generally
the new firm will continue the old firms
business