, 1885-10-03

New York, Oct. There were ru
mors last evening that a prominent house
was in financial difficulty, and the stories
took definite shape before the board met
this morning. The statement was thai
VIM. Heath x Go. were likely to fail and
that a meeting had been held between
Gould and Cammack to consider the ad.
visibility of assisting them over their
present difficulties. Shortly before mid
day the announcement was made on the
exchange that the firm was unable to
meet its obligations. The shock was not
nearly as great as many anticipated. 1t is
impossible at present to learn anything
definite as TO the immediate cause of the
failure, but rumor says the house was
short over l00, 900 shares of stock. The
firm is composed of VIM. Heath, Charles
+. Quincy and Thomas j.. Davis. Heath
has been a prominent person in Wall
street for about twenty years and has
been identified with nearly all the leading
operators in the street.
Alexander and Green, as counsel for
Giovanni +. Morosini, to-day obtained
from Judge Donohue, of the supreme
court an attachment against the property
of VIM. Heath &Co. Morosini says in an
affidavit upon which the attachment was
granted, that for several years past he
has had $4s0,00O in cash on deposit with
Heath & Co., subject to his draft, and
that the only debit that could properly be
made against that amount was for :, $50
shares of capital stock of the Manhattan
Railway company of the value ofSl92,0 900,
and twenty-five second mortgage bonds
of the Metropolitan Elevated Rail
way company of the value of $4,000.
which he had ordered the firm to purchase
for him, making an aggregate of $4,000.
He claims the firm is in debt to him
$2G5, 900 in cash, and that it also holds
these stocks and bonds Tor him. Nor
osini declares that he called at the office
of Heath & Co. for his money and securi-
ties and received IN reply hat the ON
pany could not deliver them, as the
securities had been hypothetical or sold
and the messy 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 their
property with intent to defraud him and
their creditors generally. Charles f.
Quincy, one of the members of the firm,
Morosini states has been in Europe sew
eral months past. Morosini believes
Quincy is not a resident of this state, but
of some country in Europe' unknown to
him, and has also attached whatever
property he may have in this state.
The Tribune tomorrow will say: The
principal creditor of VIM. Heath 4 Go. is
Giovanni p. Morosini, a partner in the
well known firm of W. +. Conner & Co.,
who became famous by his connection
with Jay Gould. His claim against the
firm is about $3.50, 600, for which he has
no security of any kind. Among other
large creditors are Jay Gould, $3.50, 900;
JAS. T. Low, formerly of the dry goods
house of Low, Hartman & Co, and
father of the present head of the firm,
about $500, 900; Addison Commack, 500
600, and VIM. NJ. Scott, of Erie, Pa,
$30,0 600. In addition to these, the firm
of Soutter & Co., which failed on Tues
day, is said to be Il creditor to the extent
Of about $3.50, 600 in consequence of its
dealings with Henry y. Smith The
liabilities of Heath Il Co. annot fall
short of 81, 800, 900, and may exceed that
sum. The assets, excepting the claim
against Henry n. Smith, are unknown
This claim amounts, it is said, to about
81, 200, 900, while the bulk of his
liabilities is in the brokerage
firm. 1t il now known that he
owes owes c. j. Hudson something more
than 100000. lie is also indebted to
Woerishoffer 4 Co. for a still larger
amount. It was estimated by goodjudges
that Mr. Smiths liabilities woald not fall
below 81, 900, 900. His assets are sup
posed 10 be nominal
Speaking of the failure, Mr.. Smith said:
My operations haYe dragged down VIM.
Heath, and | am more sorry for him than
for myself, but | have not deceived him
at any time and he has not deceived me.
| supposed that he would be able to carry
me through, and he said that he could do
it successfully. Even this morning he
expressed his confidence in being able to
pull through. There is nothing in the
rumor about a Joint account between me
and Woerishofier. We did have a Joint
account in Heath office, but it was closed
early in August. | believe my mislor-
tunes are my own, but | shall be on my
feet again and perhaps very soon.