Morning journal and courier., 1885-10-03
News by Telegraph FROM ALL QUARTERS. WALL STREET FAILURES. Two Firms Forced To
 Suspend. JAY GOULD MAKES A MILLION While Vanderbilt Gets
 His Revenge. BEECHER TALKS ON POLITICS. New York MugWumps For
 Davenport.
BEECHER TALKS ON POLITICS.
GETS HIS REVENGE

l vANDERBILT GETS HIS REVENGE On Man Who Caused Him To Lose Several Millions Fonr Years Ago Heath & Co. And HI. N. Smith Go | Under, While 1t Is Said That Jay Gould Gathered In a Million.
 | NEW YORK, Oct, 2.-Just before noon to- l day the announcement was made on the l Stock Exchange that the firm of William Heath & Go. had failed and had made an as- l signment to A. R. McCanless. The firm was one of the best known on the street, and has been in business for more than quarter of a | century. The members of the firm are Will liam Heath and c. E. Quincy. It was ru- 1 mored that H. N. Smith was largely respon- | sble for the failure, and this report caused ! a rush of customers to his office. The doors | were found locked and admittance was re-
 fused to everybody. MT. Smith made an assignment about half-past 1, naming John T. Cumming, of Vanderpoel Green 6 Cum m1ng,, as assignee.
 Henry N. Smith has been prominent in | Wall street affairs for years. He was former | ly favorite of William H. Vanderbilt and | was intimately connected with the younger 1 Vanderbilts in the bull deals of 1881 where by the youthful milliona!res lost so heavily. The older Vanderbilt paid several million dollars to settle their l losses and in the opinion of many | he has now achieved revenge for which he ] has been awaiting an opportunity ever since because of Smiths alleged betrayal of the ! boys interests. This view is strengthened | by the fact that the stocks of which Smith ! was short were largely those controlled by | Mr. Vanderbilt, who has caused them to be l steadily pulled for some time past. After | the bull operations of 1881 Smith joined | forces with two great bears, Werishoefbr | and Cammack, and this trio of operators 1 were for time probably the most successful | traders that Wall street has seen in years. ! Just before the transfer of West Shore to the Vanderbilt interest was consummated Woeri- | shoeffer and Cammack covered their short ! contracts and got on the bull side of the market, but Smith could not be persuaded | that the turn in the tide had been reached. | He continued bearish and has been rapidly chipping out his money until he was. to-day, ! forced to succumb Late this afternoon | he said: "The failure of Heath 6 Co. was ! mainly due to my operations in the market. | supposed until this morning they were | l l now placed where cannot pay what I owe | for the pres ent. I have been short of the ! market believing the advance to be unwar- ranted" Smith is man of fashion and a generous patron of the turf. He paid $4O,- ' GOO for Goldsmith Maid before she made her best time. He was a special partner in the ! broker firm of c. I. Hudson x Co.,, whose capital is about S100,O0O. MT. Hudson states, however, that the house is in no way affected by Smiths failure. MT. Smith was during the war senior partner of the old firm of Smith, Gould & Martin, the second part
 ner being Jay Gould; It has been said ! that Smiths financial daring and en- ! erey were chiefly instrumental in bring | ing that house safely through the periods ! of the famous gold corner. Since his con- | nsction with Gould was dissolved Smith has ! carried on his bold operations independently | as a rule, though often associated with | Werishuffsr and Cammack. His frequent raids upon the market at times when MT. Gould was interested in sustaining prices are | said to have incurred for him the enmity of | his former partner and the story goes that | Gould this morning promptly refused to help | Heath by granting him an extension of time | in which to deliver certain stocks of which | they were short on Smiths account. MT. l Gould's private brokers immediately called on Heath 6 Go. for prompt delivery of the stocks and the latter firm thereupon an nounced their suspension. Mr. Smith also owes Soutter & Co, who failed yesterday about one hundred thousand shares | of short stock for him, consist | ing chiefly, as near as can now | be ascertained, of New York Central, l Lake Shore, St. Paul, Lackawanna, Oma- l ha preferred, Jersey Central, Delaware & Hudson, Western Union and Union Pacific. l About fifty thousand shares were settled pri- ] vately this afternoon and the rest bought in ! under the rules. It is expected that on final settlement Heath S Go. will not owe the ! street more than $100,0O0.
 A member of prominent house on the l street said to-day: Heath & Co. did neat
 piece of business in announcing their ina l bility to meet their obligations. The notice l sent prices off and they were able to buy ln l large blocks at lower figures than they could l otherwise have done. They probably les
 sened their liabilities $200,00O in this way | probably not amount to over S1OO, ,OGO. They ! hold two seats in the exchange worth over 1 $25, 900 each.''
 Heath & Co. have chiefly done legitimate
 commission business, not speculating on
 their own account to any extent. They have
 8 branch at London managed by partner,
 Thomas E. Davis, but entirely independent
 of the New York house. They had branch
 in Paris, but was closed up some time ago.
 Their assignment is without preferences and
 they stated this afternoon that they could
 not yet give an exact account of their losses !
 Smiths assignee is James R. Cumming, of
 Vanderpoel, Green & Cumming, who were
 the brokers lawyers. They are preferred
 creditors for their legal services. A. R. Me
 Canless, the assignee of Heath & Co.,, is the
 cashier of the firm. He says he will make nc
 statement of the firms affairs for several
 days. The report that they lose $500, ,OOC
 on their own account is probably
 greatly exaggerated. Their accounts were
 kept at the Fourth National bank and the
 failure led to rumors affecting that institu
 tion. MT. O. D. Baldwin disposed of this
 report by announcing that the bank held ample security for any loans to Heath & Co
 It is a matter of gossip among the brokers at
 the Windsor Hotel this evening that Jay
 Gould made million dollars to-day by heavy | purchases at the low figures following the
 announcement of the failures. His opera
 tions not only sustained the market, but re-
 suited in a sharp advance.
 Counsel for G. P. Morosini to-day obtained
 an attachment against the property Of Heath
 & Go. upon an affidavit setting forth that
 for several years he has had S4S0, 900 on de
 posit with that firm subject to his draft ano
 that the only debit that could properly be
 made against that amount was. Sl92,O0 fol
 3,390 shares of Manhattan railway stock ane
 $23, ,0O0 for twenty-five second mortgage
 Metropolitan Elevated railway bonds whic he instructed the firm to purchase for him
 He claims that the balance of $265, 1000 ii
 due him and that the frn
 still holds for him the securities men
 toned Mr. Morosini declares that he called = on Heath & Co. to-day for his money ant
 securities and was told that the securities ha'
 been sold or hypothecated and the mone
 otherwise disposed of. He therefore charge
 that they have assigned and disposed of thei
 property with intent to defraud him ant
 l their other creditors. MT. Morosini is a mem Der of the firm of w. E. Connor & Co.,, o !; which Jay Gould is also partner.
 - An Engraving Firm Goes Under. BOSTON, Oct 2.--John A.-L'owell & Co
 engravers of worldwide fame because of tn
 excellence of their work, have failed. Tn
 | affairs of the firm are in such conditio