New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-03
vOL.XLv .No.142C".
FAILURES IN THE Street
Uv urATH& co. AND H. N SMITH SUSPEND
,ur 1IAnuIrIEs OF BOTH EsriNAiAN
60 sOO.OOO-AsslGNMENTs NJ ABE

en-
.Sono sbortly before Doel yesterday, causeo ele"S
.,oroo,t IN wall Street At the opening OF ouSn ,
~ ,rore rneny rumors that the firm was III - - t,s
aud fev persons knew that its long career We" I'D
.nd Tho presence Of Mr.. Heath In the IO"r 1o and
bowever and his apparent good spirits as nv ,nors
renewed his stock loans, did much to qu'o' ~ .o his
Ifo was standing in the group when messaE1
1o ,s1 20 HIM Ha hastily left the ENohHnso'
.rd not long afterward his letter an
,ho inability of the firm 10 n'o' rho
gapenents was read from Ino w., .hs mar
announcement created intense exci'e'i'n or,racts
tat snrang into instant activity The coS"S " ord
ter Tho Nrn, "under the rule,' began
the rOstrum was quickly oi'"
Gu III .ie vos General but long before Henry
" smith the famous bear spec1ator WHO Is ~ - -
norof the Exchange, had announced MS -.
,as commonly understood that the failure Oh 'n9
w honse had been caused by Mr. Smiths ia'nlo
80, his oceount Little attention was pau " '"'
announcement because Mr. Smith had no "'Foo' OO',e
tions on the floor. All his business Ior M 40
boen done through other brokers. Inc wv ,,
80 coseIy connected that they were cohslie'o" W.
oDo They were undoubtedly a consequence oi '"o "
vonco in stocks which was Begin carry III inc s~ ~
- o,,i,h rho has been persistent bear loT many
oor, vas then short OF consiferaoo Aho Vi 'oV"'
opA he contested the advance at every sep "''
+oysstic obstinacy In the last two months n' n" 80
,tt,e but no made no attempt to cover blS pre-
xio sale
Heath & Co.. and although Mr. Heath mas o'e" No. no''u
rnorv wears for his carefuness. he sympaIhN'u
,yorn,Iv with Mr. Smith in his views OF the m'rR't auu
t,.opted to protect his spec ulatlons AHe r's''' Va
tho veteran brokers' confidence anu HIS o"S'0''''
obstinacy was the failure OF both ,.
Aftar the announcements at the Stock tNchanEe "
,os soon learned that the embarrassment oi Aealh
Co had been known by few persons Tor scVera' u"S
Conferences OF few OF the principal creditors ha'o
been held since failure of soutter CO. on IueS"nS'
md M the last one, Thursily afternoon IL was"
eo in effect that the creditors coad afford the trm TO
,eef The deed of assignment was drawn tlaI aIVeI'
noon and although Mr. Heath by HIS presence on tue
Aoor of the Exchange yesterday mordinI proIeS' 0o
Ndence in his ability to surmount his dlhcnlVes u" nv
,,cc o, an attachment by his largest creditors dsp'e
any confidence he might possibly have fc1 III" "''" %
assignment was executed without delay.
,r"n D~inc,nal creditor OF william Heath & Co Is
ciovann, p NIorosni. partner in the wel-knowh hrm
of w F. Connor q Co, who became lannon's py HIS 'o"
pection with Jay Gould His claim against 'n'
firm Is about S55O,000 for which nc mas 10
security Of any kind Among Inc 'lu'r '".H'
creditors are jay Could 52GooOO; James l. Low Ior
rsrv o the dry goods firm Of Low, Hartman Coah'
tatber Of the present head OF the firm. abon StooVOo
Addison Cammack $4,000. and William J." Scott oI
Erie PENN $50 900. In addition to these tho hrm OF
eouttcr 4 Co. which failed Tues iay, Is said TO be
creditor to extent Of about S23ooOo IN consequence
of its dealings with Henry y. smith.
The liabilities of Heath & CO. cannot fall short OF
81 500 600 aud may exceed that sum- The amount OF
the loans secured by stock Exchange colld'eFds couu
not be asccrtaiueI yesterday The assets excepting The
claim against Henry y. Smith are unknown IhiS claim
amounts tits said TO about 81 100000 and whIc MI
Smith said yesterday that ho could lot tell what his
debt 10 the 6rn might be- he expressed no surprise M
the figures Whio the bulk OF his liabilities s to the
brokerage rm it is known that he owes the brokerage
firm OF c. I. Hudson & Co., In which ne has been
sp4cal partner, something more than tho 100000
.1aa fuFal cd -
woershoGar Co. foc still larger amount 1t was es-
tlmatod by good judges yesterday that Mr Smiths a-
bluies would not fall below S2,OoO,0O0, His
assets arc supposed 10 be nominal His
town house in Tiith-aye. and the Fashion stud
Farm near Trenton, " j., belong to lis wfc, for whom
Mr.. Smith bought them about so. Speaking Of the
failure yesterday afternoon, MI Smith said;
"My operations have drggged down william Heath
and am moro sorry for him than for myself But
have not deceived him at any time and he has not de-
ceived ae supposed that he would be able to carry
Inc through said that he could DO 1t successfully
Even this morning he expressed Ills confidence being
able to pull through. should not have engaged him II
had had any doubt of his ability could not do any
thing with Hudson & Co.. because knew that they
were strong enough to carry me II the market hap
pened TO 60 against me. should have simply swamped
them without saving myself therefore withdrew my
special capital and something more from the firm and
told Heath when did it. am very sorry for Heath,
for II had thought for moment that he cOId not carry
me through should have made other arrangements
closed my contracts. had his assurance however, and
supposed that he knew his resources There is
nothing in the rumor about joint account between
and woerishoher. We did have a joint account in
Heaths office, il closed early in August think
1t small account, although 1t had large
OF times, and was closed by mutual consent Ny mis-
fortunes are my But I shall he my feet
again and perhaps very soon 1 remember that once
came back here from Europe and all could scrape
gether $4,000 Within year had over
million dollars in hard money. have not lost my
age, although have never been thrown fat am
now"
The Joint account with Charles f. woerishofer, to
which Mr. Smith referred. said to have been large
one Persons somewhat familiar with tho facts said
yesterday that at time the account was for
10000 shares of stock and that it opened nearly
year ago. 1t not known how large II when 1t
was dissolved, but Mr. Woerishofer
three or four months ago delivered his
part Of the stocks and demanded a release
from the joint liability. 1t is understood that William
Heath * Co. objected to this but that Mr.. Woer-
isfofer prevailed through the influence OF Smith.
was then considerably behind in his account with the
firm OF Woershofer & Co. In whatever way the
purpose accomplished the release given. Mr..
Heath is said since to have regretted his action n this
matter and yesterday 1t reported that his lawyers
were engaged in an inquiry as to whether the release
could be aside The counsel Of Mr. Morosni was
said also 10 be studying the same subject.
Charles f. Wocrsh0fer said IN reply TO questions
about the release "I am perfectly safe in
uds matter. Tho release was drawn by a
good lawyer and without doubt is perfectly good But
The account was very small one anyway, and did not
exceed 10000 shares No. not 10000 each. hut alto.
gether Smiths failure is not due to any losses from the
Joint account"
While general sympathy was expressed in Wall Street
with william Heath & Co., s. " White did not attompt
to conceal his satisfaction. Nearly fteen years ago he
Interested In joint account in which last he
the only solvent member The account In the office
OF William Heath Co.. whO after a litigation lasting
setoral years. recovered 100000 from Deacon
White. The rumorcd complications in the present in
NAV hav inten od hfs