Evening star. [volume] (Washington, D.C.) 1854-1972, 1885-10-02

Heath Il Co. Unable to Meet Their Oh
legations. Owing to the Failure n
Their Customers to Put Up Nor
Margin.


legations. Owing to the Failure Of
Their Customers TO Put Up More
Margin.
NEW YORK, October 2-There were rumors as
long ago as last evening that prominent house
was in financial difficulties, and the stories
took definite shape before the opening of the
board this morning. The statement was that
VIM. Heath & Co. was likely to tail and that
Mr. Cammack to consider the advisabiity of
assisting him over his present difficulties
As Mr. Heath appeared in the loan crowd on
the stock exchange at the opening of
the board, and no further developments were
made, the general conclusion arrived at was
that the rumors were false, but shortly before
midday the announcement came from the
rOstrum OF the stock exchange that the firm of
William Heath & Co. was unable to meet its
as many had anticipated. There was a very
active market and a gradual tendency to lower
quotations, but no decided break and no very
material excitement, except as appeared on
the floor of the stock exchange. 1t is impossi-
bic at present to learn anything definite as to
the immediate cause Of the failure, but rumor
says that the house was short over 100 600
shares OF stock, and the general impression of
the street Is that the failure is due largely
TO the inability or unwillingness of a prom
inent speculator who was recently reported i'm
financial trouble to respond TO the demand for
additional margin. is probable that the fall
customer who was heavily short of stocks
through the suspended house to meet the de-
mands made upon them. There has been a
large number of transactions under the rule
for cash i'm Lake Shore, st. Paul, Lackawanna
northwestern. Western Union. Union Pacific,
New York Central Jersey Central, Omaha pre-
ferred and Missouri Pacific understood to be
on account of the suspended firm, but the de-
than one per cent, the weakest stock being
Lake Shore, Northwestern and New York Gen.
trail.
The firm of VIM. Heath & Co. was composed
of Mr.. Heath and Charles +. Cuijmey, both of
whom were members of the stock exchange
and Thomas Z. Davis: Mr.. Cuijmey is absent
N pNrn. ant fHnY thx< city
Mr.. Heath has been prominent person on
Wall street for about twenty years and has
been conspicuOusly identified with nearly all
of the leading operators in the street during
that time. Mr. Henry n. Smith. about whom
rumors of financial trouble have been afioat for
some time past, and who has been a very
heavy bear operator at times for several
years, says: "The failure of William
Heath & Co. is mainly due to my operations in
strong enough to carry me through and up to
10 o'clock this morning had no idea of their
failure. am now unfortunately placed where
cannot pay what l owe for the present.
have been short of the market, believing the
advance to be nnwarranted. ! shall make an
m nendon By ane third parsnef
Thomas f Davis, and it is understood that the
London house of VIM. Heath & Co. is one of the
Heath and Mr.. Chimney are the representatives
here. 1t is now believed that the failure of
Soutter & Co., on Wednesday, was due. at least,
in part to the same cause which has brought
about the suspension of Heath & CO.-the
failure of Mr.. Smith to put up :the required
margins. No shadow OF suspicion that Heath
& Co. were not abundantly able to meet all
their engagements has existed i'm Wall street,
and the general impression has been that il
was among the strongest and most prosperous
houses i'm the street. The common saying has
been: ''Others can fail with whom Mr.. Heath
is associated, but he always manages to take
care of himself" VIM Heath & Co. have lust
made an assignment to A. r.. McCauley, the
manager OF their office, without preferences.
1t is stated at the office of the firm that con-
tor about 10O 600 a nf Stonlr
standing on the exchange, principally the VAN
derbilts Lackawanna and the Changers
Mr.. Henry n. Smith has made an assignment
to Mr.. Cunning, of the law firm of Vanderpoel
Green & Cunning, with preferences for wages
and salaries; amount not stated. Mr.. Smith
has been member of the stock exchange
since 1877.