St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-10-03
William Heath & Co., the Extensive New
York Stock Brokers, Forced
to the Wall.
They Make an Assignment with Liabilities
Amounting to About
S1,8O0,000.
Giovanni Morristn1, Jay Gould end
other Well-Nnown Capitalists
Interested.
Gossip About the Financial Crash.
What Caused the Big
Failure.
Extensive Failures.


was IN financial difficulties. and the stories
took definite shape before the opening of
the board this morning. The statement
was that William Heath & Co. was likely
10 Iall and that meeting had been held be-
tween Mr.. GOnld and Mr.. Cammack to con-
slider the advisability of assisting him over
his present difficulties. AS Mr.. Heath ap-
peared on the stock exchange at the OPEN
ing, and no further developments were
made, the general conclusion was that the
rumors were false, but shortly before mid
day the announcement came from the ros-
trum OF the stock exchange that the firm of
William Heath & Co. was unable to meet
its obligations. The shock was not nearly
as great as many had anticipated. 1t is
impossible to learn anything definite as to
the immediate cause of the failure, but ru-
NOR says that the house was short over 1OO,-
OOO shares OF stock, and the general i'm
preston OF the street is that the failure is
due largely to the inability or unwilling
ness OF prominent speculator, who was
recently reported in financial trouble. to re-
spond TO the demand for additional mar
gins. 1t is probable that the failure is due
to the tardiness OF more than one customer
who was heavily
SHORT OF STOCKS.
through the suspended house, to meet the
demands made upon them. The firm of
William Heath & Co. was composed OF
William Heath, Charles E. Quincy and
Thomas E. Davis. Mr.. Heath has been a
prominent person on Wall street for about
twenty years, has been conspcuously iden-
tilted with nearly all of the leading oper-
atorS in the street during that time
Mr. Henry NJ. Smith, about whom rurnors
of financial trouble have been afoat for
some time past, and who has been very
heavy bear operator at times for several
years past says:
1.-THE failure of William Heath & Co. is
mainly due to my operations in the stock
market. supposed the firm was 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 owe for the pres
ent. l have been short of the market, be-
heving the advance to be unwarranted. !
shall made an assignment"
Later In the day he assigned to Mr.. Cum
ing OF the law firm of Vanderpool, Green &
Cunning, with preferences for wages and
salaries; amount not stated. Mr.. Smith
has been a member OF the stock exchange
since 1877.
PROMINENT BROKER SAYS:
''The effect of the failure is likely to be a
quiet market after to-day until the street dis
covers the extent of the losses. 1t is claimed
that Henry M. Smith owes the firm of William
Heath & Co. about one million dollars, and
the firm owes its customers about the same
amount. The differences 70 Wall street
| houses are not likely to amount to over
1000. Heath & Co.'S two seats in the New
York stock exchange are good for $50, 900, so
that Wall street houses will lose very little by
the failure. 1t is more likely to strengthen
the hands of the bulls as Smiths operations
have often prevented the markets from ad-
vancing.
1t is stated that Smith is also responsible
for the failure of Soutter 81 Co., having
owed them about $3.50, 900. 1t is the
opinion of a number Of people on the street
that Smiths failure was brought about by
MI. William II. Vanderbilt, who advanced
the market in order to break Smith, as pun
ishmhet for Smiths betrayal of William K.
Vanderbilt when they were operating to-
gether. A. NJ. Heath & Co. have also
made an assignment to A. B. MeCauless,
the manager of their Office, without prefer
ences. 1t is stated at the Office of the firm
that contracts for about 100, 900 shares Of
stock are outstanding on the exchange,
principally the Vanderbilts, Lackawanna
and the Grangers.
AN ATTACHMENT ISSUED.
Alexander and Green, as counsels for
Gioviani 2. Merrisini, to-day obtained from
Judge DOnahue of the supreme court an at
tachment against the property of William
Heath G5 Co. Mr.. iGorrisini says in the
affidavit, upon which attachment was
granted. that for several years past he has
had S4S5, 900 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
the capital stock of the Manhattan Railway
company, of the value of S192, 900, and %
second mortgage bonds of the Metropolitan
| Poll Of oIr1a of
S23, 600, which he had ordered the firm to
purchase for him, making an aggregate
amount of S215, ,000 He claims the firm is
in debt to him 1865, 900 in cash, and that it
also holds these stocks and bonds for him.
Mr.. MOrisini declares that he called at the
Office of Heath & Co. yesterday for his
money and securities and received in reply
that the company could not deliver them,
as the securities had been hypothecated or
sold and the money 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 cred
itors generally. Charles E. Quincy, one Of
the members of the firm, Mr.. Morisini
states, has been in Europe for several
months past. He believed he is not resi-
dent of this state, but of some country in
Europe, unknown to him, and has also at
tached whatever property he may have in
this state.
THE TRIBUNE's STATEMENT.
The Tribune tomorrow will say: The
principal creditor of William Heath & Co
is Giovanni P. Morrisini, partner in th'
weIl-known firm of W. E. Corners & Co.,
who became famous by his connection will
Jaw Gould. His claim against the firm il
about $780, 900, for which he has no security
of any kind. Among the other large cred
itors are Jay Gould, $3.50, 600; James F.
Law, formerly Of the dry goods firm Of
Law, Hartman & Co., and father of the
present head of the firm, about $500, 900;
Addison Cammack, 60,000, and William
L. Scott. of Erie, Pa, $50, 900. In
addition to these the firm of
Souther & Co., which failed on Tuesday,
is said to be creditor to the extent OF
about $3.50. 600, in consequence of deal
ings with Henry \. Smith. The liabilities
of Heath 81 Co. cannot fall short of 81, $780,
600, and may exceed that sum. The assets,
excepting claim against Henry n. Smith,
are unknown. This claim amounts, it is
said, to about 81, 900, 900, while the bulk of
his liabilities is to the brokerage firm. 1t
is known that he owes C. /. Judson 81 Co.
something more than 100000. He is also
indebted to Woerishoffer & Co. for q still
larger amount. 1t was estimated
by good judges that Mr.. Smiths
liabilities would not fall below 81, OOO,-
600. His assets are supposed to be
nominal. Speaking of the failure Mr.
Smith said: MY operations have dragged
down William Heath and L am more sorry
for him than for myself. But have not
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