Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1885-10-03
A HEAVY FAILURE.
The Firm of Heath \ Co.. Suspend. Re.
ported Liabilities sl.OOO,OOO.-v Van.
derbilt's Desire for Vengence Said to
be the Cause.
NEw YORK, Oct. =.

NEW YORK, Oct. ..
The suspension of Heath & Co, was an
nounced in the stock exchange At noon.
Rumor says the house was short over
100000 shares of stock, and the general inn
preston on the street is that the failure is
due largely TO the inability or unwillingness
of prominent speculator who was recently
reported to be in financial trouble, to respond
to the demand for additional margins. Mr..
Henry Nj. Smith, about whom rumors of
tinancial trouble have been afiost for some
time past and who has been very heavy
bear operator at times fer several wears past,
says; 1.-The failure of Mr.. Heath & Co., is
mainly due to NV operations in the stock
market. supposed the firm was strong
enough to carry me through, and up to ten
this morning | had no idea of their failure
am now unfortunately placed where can
not pay what owe for the present. l have
been short OF the market believing the all
vance to be unwsrrsnted. l shall make an
assignment"
1t is reported that ii. NJ. Smith owes the
firm of Heath 4 Co.. about million dollars,
and that the firm owes customers about the
same amount. Ii is stated that Smith is also
responsible for the failure of Soutter 4 Co,
having owed them about S250, 900. 1t is the
opinion of number of people that Smith ;
failure was brought about by w. ii Wander
bilt, who advanced the market in order to
break Smith, as a punishment for Smiths
betrayal of W. X. Vanderbilt when they
were oprrat ng together.
Alexander & Green. as counsel for Giovanni
7. Morosini, to-day, obtained an attach
ment against the property OF VIM. Heath &
Co. Morosini says in the atiadavit in which
the attachment was granted, for several years
past he has had $3.50, 900 in cash on deposit
with Heath & Co., subject to his draft and
that the only debt that could properly be
made against that amount was for certain
stocks and bonds which he had ordered the
firm TO purchase for him and which in the
aggregate cost S2l5 900. He claims the firm
is in debt to him S265. 900 in cash and that it
also holds these stocks and bonds for him.
Morosni declares that he called at the office
of Heath Co., yesterday, for his money and
securities and received the reply that the
company could not deliver them as the secur-
titles had been hypothecated or sold and the
money otherwise disposed Of He AYERS 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 and their
creditors generally. Charles Il. Quincy, one
of the members of the firm, Morosini states,
has been in Europe for several months past.
He believes he is not resident of this state
but of some country in Europe unknown to
him, and he has also attached whatever
property he may have in this state.
Mr. Henry N. Smith of New York has
made an assignment to Mr.. Cunning of the
law firm of Vanderpool, Green & Cunning.
The amount is not stated. Smith has been a
member OF the stock exchange since 1877.