Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-10-03
FINANCIAL CEASE.
william Heath Co., New York stock Bro
kers. Make an Assisnment.
fBy telegraph to the Dispanh.I

william Heath Co.. New York stock Bro
kers. Make an Assignment.
fBy telegraph to the Dispach.I
NEW YORK, October 2.-william
Heath & Co. have made an assignment
to A. X. McCaulsey, manager Of their
Office, without preferences. Ii is stated
at the Office Of the firm that con-
tracts for about 100000 shares of
stock are outstanding on the Ex-
change. principally yanderbilts, Lack
awanna, and Changers. Henry N.
Smith, who has been heavy bear
operator, is credited with the statement
that Heath's failure is due to his opera
tions, and that he will also be compelled
TO make an assignment.
A prominent broker says: "The
effect of the failure is likely to be
quiet market after to-day until the
street discovers the extent Of the
losses"
1t is claimed that Smith owes the
firm Of William Heath & Co. about one
million dollars and that the firm owes its
customers about the same amount. The
differences to Wall-street houses are
not likely to amount to over 800, 900.
Heath & Co.'S seats in the New York
Stock Exchange are good for $50, 900.
So that Wall.street houses will lose
very little by the failure. II is more
likely to strengthen the hands Of the
bulls, as Smiths operations have
often prevented the market from adj
vancing.
1t is stated that Smith is also re-
sponsible for the failure Of Smith &
Co., having owed them about $3.50, 900.
1t is the opinion Of number Of people
on the street that Smiths failure was
brought about by William II. Van
derbilt, who advanced the market
to break Smith as punishment
for Smiths betrayal Of William
II. Vanderbilt when they were operating
together. 1t is estimated that Heath
was short from 10000 to 100000
shares for Smiths account. All settle
ments, as far as Wall street is con-
cerned, were completed this after
noon.
Henry n. Smith has made an assign
ment TO Mr.. Cumming, Of the law firm
of Vsnderpool, Green & Cumming,
with preferences for wages and sala-
ries: amount not stated.
Alexander and Green, as counsel for
Giovanni p. Morosini, to-day obtained
from Judge Donohue, of the Supreme
Court, an attachment against the pro-
perty of William Heath & Co. Moro
SIM says in the affidavit, upon which
the attachment was granted, that for
several years past he has had $3.50, 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 $3.50
shares of the capital stock Of the
Manhattan Railway Company. Of
the value of 100000, and TWEEN
ty-fve second mortgage bonds of
the Metropolitan Elevated Rail
way Company, value $4,000, which
he had ordered the firm to purchase for
him, and which in the aggregate cost
s2l5,OO0. He claims the firm is in
debt to him 1865, 900 in cash, and that
it also holds these stocks and bonds for
him. Morosini declares that he called
at the office of Heath 4 Co. yesterday
for his money and securities, and re-
ceiyed reply that the company could
not deliver them, as the securities had
been hypothetical or sold, and the
money had been otherwise disposed Of.
He AYERS he never authorized Heath x
Co. to make use Of his money aud the
securities, and charges that they have
assigned and disposed Of their property
with intent to defraud him and the Gre
ditors generally. Charles E. Quincy,
one of the members Of the firm, Moro
SIM states, has been in Europe several
months. He believes he is not resi-
dent Of this State, but of some country
in Europe unknown to him, and he has
also attached whatever property Quin-
cey may have in this State.
The Tribune Of Saturday will con-
tain the following: The principal
creditor of William Heath q Co. is
Giovanni P. Morosini, partner in the
well-knOwn firm Of ", f, Couuor Il
Co., who became famous by his con-
nection with Jay Gould. His claim
against the firm is about $780,
600, for which he has no security
of any kind. Among other large
creditors are Jay Gould, s260,0Oe !;
James T. Low, formerly of the dry
goods firm Of Low, Hartman & Co.,
and the father Of the present head of the
firm, about 100000: Addison Cam
mack, 100000; and William L. Scott,
of Erie, Pa, 100000. In addition to
these the firm Of Soutter & Co., which
failed on Tuesday, is said, to be credi-
tors to the extent of about s250.000,
in consequence Of its dealings with Hen
ry n. Smith.
The liabilities Of Heath & Co. cannot
fall short of 1880, 900, and may ex-
coed that sum. The amount Of loans
secured by Stock Exchange collaterals
could not be ascertained to-day. The
assets, excepting the claim against
Henry N. Smith, are unknown. This
claim amounts, it is said, to about
100000; and while Smith said to-
day he could not tell what his debt to
the firm might be, he expressed no
surprise at the figures. While the bulk
of his liabilities is to the brokerage
firms, it is known that he owes the
brokerage firm Of G. t. Hudson & Co.,
in which he has been a special partner,
something more than cleo. 900, capital
which he contributed. He is also in
debted to Woerishofer & Co. for a still
larger amount. 1t was estimated by
good judges yesterday that Smiths LA
bilities would not fall below $1,000
600. His assets are supposed to be
nominal. His town house on Fifth
avenue and the Fashion Stud Farm,
Trenton, N. j., belong to his wife. for
whom Smith bought them about 1870.
Speaking of the failure Smith said.