The Portland daily press., 1885-10-03
WALL STREET WRECKS.
William Heath g. Co., and Henry n.
Smith Suspend.
The Liabilities OF Each Estimated at
About 81 200, 900.

WALL STREET, Oct. 2.-Shortly before midday
Ine announcement came from the IroStrum of the
Stock Exchange that the firm of William Heath &,
20 was unable to meet its obligations 1t is i'm
possible at present to learn anything definite as to
the immediate cause OF the failure, but rumor
says that the house was short over 100000
shares of stock and the general impression of the
street is that the failure is due largely to the ina
Dllity or unwilllngness of a prominent speculator
who was recently reported in financial trouble to
respond to the demand for additional margin. 1t
Is probable that the failure is due to the ardneSS
oI more than one customer who was heavily short
oi stocks through the suspended house to meet
Gle demands made upon them There has been a
large number of transactions under the rule for
cash in Lake Shore, st. Paul, Lackawanna, North
western, Western Union Union Pacific, New
York Central, Jersey Central, Omaha Preferred
and Missouri Pacific, understood to be on account
OF the suspended firm but the decline in prices
up to O'Clock was far less than l per cent the
weakest stocks being Lake Shore, Northwestern
and New York Central. The firm OF William
Heath & Co. was composed of Mr.. Heath and
Charles E. Quincy, both of whom were members
OF the Stock Exchange, and Thos. E. Davis. Mr..
Quincy, is absent at present from the city. MI;
Heath has been a prominent person on Wall street
Tor about twenty years, and has been conspicuous
y identified with nearly all of the leading opera
tors IN the street during that time. AS early as
1854 he was connected with Anthony w. Morse
In extensive operations in the market, and it is
understood that Mr.. Heath lost all his money at
the time of Mr.. Morse's iure. He was mem
Der of the open board of brokers, and became a
member of the Stock Exchange at the time that
the two exchanges were consolidated He was
went through the gold panic of 1869 and the gen.
era financial panic Of 1873 without suspending.
In his operations he has been intimately connect
ed with Daniel Drew, James Fisk,Jr. Mr. Tracey,
Jay Gould and many Others Mr. Henry NJ
Smith, about whom rumors of financial trouble
nave been afoat for some time past and who has
been very heavy bear operator at times, for sew
eral years, says: "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. l am now
unfortunately placed where cannot pay what
owe for the present. have been short of the
market, believing the advance to be unwarranted
! shall make an assignment"
The firm IS represented in London by the third
partner, Thomas E. Davis, and 1t is understood
that the London house of William Heath s. Co. is
one of the leading American houses in that city.
Mr.. Heath and Mr. Quincy are the representa-
tlVeS here. Ii 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 shad-
ow OF suspicion that Heath & Co. were not abun-
dainty able to meet all their engagements has eX-
listed in Wall street, and the general impression
has been that 1t was among the strongest and
most prosperous houses on the street. VIM
Heath q Go have just made an assignment to A.
r. McCauless, the manager of their office, without
preferences. 1t is stated at the Office of the firm
that contracts for about 100000 shares of stock
are outstanding on the Exchange, principally the
NanderbiltS, LackaWanna and the grangerS.
1t is reported that Henry n. Smith owes the
firm of William Heath & Co. about one million
dollars, and that the firm owes its customers
street houses are not likely to amount to over
100000. Heath & Co.'S two seats in the New
York Stock Exchange are good for S50,000 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 pre-
vented the market from advancing. 1t is stated
that Smith is also responsible for the failure of
Soutter q Co., having owed them abont S250,000.
1t Is the opinion OF a number of people! on the
street that Smiths failure was brought about by
William III Vanderbilt advanced
market in order to break Smith, as punishment
for Smiths betrayal of William X. Vanderbilt
when they were operating together
1t is estimated that Heath was short from 90,-
600 to 100000 shares of ctock for Smiths ac-
count. All the settlements, as far as Wall street
IS IS CONCERNED, will be completed before O'Clock
Heath & Co. were borrowing.
[LATER.]
Alexander g. Green, as counsel for Giovanni
?. Morisini, today obtained an attachment against
the property of William Heath s. Co. Morisini
says the affidavit in which the attachment was
600 in cash on deposit with Heath & Co. subject
to his draft and that the only debt that could
properly be made against that amount was for
certain stocks and bonds which he had ordered
the firm to purchase for him land which in the ag-
gregate cost S215 200. He claims the firm is in
debt to him S265 900 in cash and that they also
hold these stocks and bonds for him. M0risini
declares he called at the office of Heath Co. yes
terday for his money and securities and received
the reply that the company could not deliver them
as the securities had been hypothecated or
sold and the money otherwise disposed Of He
AYERS he never authorized Heath & Co. to make
use of his money and securities and charges that
they have assigned and disposed of their prop
erty with an intent to defraud him and their cred
ltors generally Charles E: Quincy, one of the
members OF the firm, Morisini states, has been in
Europe several months past. He believes he is
not a resident of the State but of some country iu
Europe unknown to him, and he has also attached
whatever property he may have in this State.