Savannah morning news. [volume] (Savannah) 1868-1887, 1885-10-03
RUINED BY VANDERBILT.
HENRY X. SMITH PUNISHED FOR
ELEECING CZAR BILLY'S son.

William Heath & Go. Forced to Assign
on Account OF the Big Bear Operators
Break-s0utter n Co.'s Crash Attribu-
ted to the Same Ciroumstanoes-The
Effect Not to he Serious.
NEW York, Oct. 2.--Wm. Heath q Co.
have made an assignment to A. Il. Mo-
Caulsey, 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 ex-
change, principally Nanderbilts, Lacka-
wanna, and GraDgers Henry n. Smith,
who has been a heavy shear" operator,
made statement this morning that Mr..
Heath's failure was due to his operations,
and that he had also been compelled to
make an assignment.
THE PROBABLE EFFECT.
A prominent broker says "The effect
OF the failure is likely to be to quiet the
market after to-day until the street dis
covers the extent OF the losses" 1t is
claimed that MIR. Smith owes the firm OF
William Heath Il Co. about $l,000000,
and tnat the firm owes its customers
about the same amount. The differences
TO Wall street houses are not likely TO
amount TO over 100000. Heath " Co.'s
good for 500 600, 50 that Wall street houses
will loss very little by the failure. 1t is
merely likely TO strengthen the hands of
the bulls as Mr.. Smiths operations have
often prevented the market from ad-
vancing.
A REGULAR JONAH.
II Is stated that Mr.. Smith is also re-
spOnsible for the failure Of Soutter Il Co.,
having owed them about $250,000. 1t is
the opinion of a number OF people on the
street that Mr.. Smiths failure was
brought about by William II. Vanderbilt,
who advanced the market in order TO
break Mr.. Smith, as punishment for Mr..
Smiths betrayal Of William X. Wander
blt when they were operating together.
II is estimated that Mr.. Heath was short
from 10000 to 100000 shares for MIR.
Smiths account. All settlements, as far
as Wall street Is concerned, were COM
pleted this afternoon by buying in all the
stock which Heath e. Co. were borrowing.
Mr.. Smiths assignment was made to
Mr.. Cumming, of the law firm OF Van
derpOol, Green ~ Cumming, with pref
erences for wages and salaries.
vICToRIA's FATHER.
Alexander a. Green, as counsel for
Giovanni p. MOrosIni to-day obtained from
Judge DOnohue Of the Supreme court an
liam Heath & Co. Mr.. Morosinl says in
the affidavit upon which the attachment
was granted that for several years past
he has had $4S0,000 in cash on deposit
with Heath & Co., subject to his draft,
and that the only debit that could prop
erly be made against that amount was for
1850 shares Of the capital stock OF the
Manhattan Railroad Company Of the
value of $685. 900 and % second mort
hxv 10 Of ha fad
Railway Company of the value OF 1923 900,
which he had ordered the firm to pur-
chase for him, and which in the aggregate
cost $4,000. He claims that the firm is
in debt TO him $265, 900 in cash, and that
it also holds these stocks and bonds for
him.
HEATH DECLINES TO DELIVER.
Mr.. Morosini declared that he called at
the Office Of Heath a. Co. yesterday for his
money and securities, and received a re-
ply that the company could not deliver
them, as the securities had been hypOthe-
Gated or sold, and the money had been
otherwise disposed OF. He AYERS that he
never authorized Heath q Co. to make
use OF his money ard securities. and
charges that they have assigned and dis
posed OF their property with intent to de-
fraud him and their creditors generally.
Charles K. Quincy, one Of the members
Of the firm, Mr.. Morosini states, has been
in Europe several months. He believes
that he is not a resident OF this State, but
Of some country in Europe unknown TO
him, and he has also attached whatever
property MIR. Qulncey may have in this
State.
BIG FINANCIERs CAUGHT.
The Tribune OF Saturday will contain
the following:
nh 4
Co. is Giovanni p. Morosni, the partner In
the well known firm OF w. e. COnnor x Co,
who became famous by hls connection with
Jay Gould. His claim against the drm is
about S550, 900, for which he has no security Of
any kind. Among other large creditors are
Jay Gould, for s2oO,000; James Il. Low. for
merly of the dry goods firm OF Low, Harr-
man Co., and father of the present head Of
Cammack for $4,000, and William
l.. scott. Of Erie. Pa, for Sso,0oC. 10
addition to these the firm OF Soutter q Co.,
which failed on Tuesday. is said to be a credi-
tor 20 the extent OF about t250,000, IN con-
sequence Of its dealings with Henry N. smith.
HEATH's LIABILITIES $1,SO0,0O0.
The liabilities OF Heath h Co. cannot fall
short OF Sl,sU0,O00, and may exceed that sum.
The amount OF loans secured by stock ex-
change cOllaterals could not be asccTtnined
to-day. The assets. excepting the claim
against Henry y. smith, are unknown. This
claim amounts. " Is said. TO about 81 ,z00.-
bpUs ana Wnle mfs NWllu talu tO-uhy tuut ne
cOuld not tell what his debt 10 the 1rm
might be he expressed no surprise st the hg-
ures. While the bulk OF his liabilities Is TO
the brokerage Arm, u Is known that he
owes the brokerage firm Of 9. II. Hudson &
Co., in which he has been a special partner,
something more than 100000 capital, which
he contributed. lie is also indebted 10 Woer-
ishoefcr a Co. for still larger amount. ~
was estimated by good judges yesterday that
that Mr.. Smith'sliabilities would not fall be-
low $20O0,000.
THE ASSETS.
His assets are supposed TO be nominal. His
town house, on kiith avenue ana fOrteith
70 his wife, for whom Mr. Smith bought them
about 1870. In speaking OF the failure Mr..
smith said: "My operations have dragged
down william Heath. and I am more sorry
for him than for myself, bat have not Do
celved him at any time and he has not de-
ceiyed me. supposed that he would be able
70 carry me through, and hosaid that he could
do 1t SUCCESSFULLY"
HKATH's CONFIDENCE.
Even this morning he expressed his conf
dence in being able 70 pun through. should
not have engaged him II ] had had any doubt
of his ability. / could not do anything with
Hudson a Co., because ! knew that they
were not strong enough 20 carry me. II the
market happened % 90 against me should
have simply swamued them without saving j
myself. i therefore withdrew my special
capital and something more from the
nrm, and told Mr.. Heath when
Mr. Heath. for had thought
for . moment that ho could not carry me