New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-09-04
MUsGRAvE & co. SUSPEND.
PUTS AND CALLS CAUSED THE TRoUBLH'
THE RISE IN STOCKS pREoIpIrArED THE SAIzA
URE-uABILrTIRs NOT KNOWN.

URE-LIABILITIEs NOT KNOWN.
The failure Of Musaave & Co., No. 20 Pine-st.
which announced at the stock Exchange tuss
before the delivery hour yestcriay, was not geas
surprise. Its effect the OF prices was even
less important and the marhet moved up ard with.
out regard to the formal notice that the firm was
unable TO meet its engagements. One reason for the
lack Of interest In the failure OF Of the oldest
houses In the street was the fact that 1t had been
expected for long time. reason why II had Ne
influence on the market was tie other fact that the
firm had been issuing stock privileges in such way
that the closing of contracts nero interiacing
of contracts. Whether the actual balance was La
favor of the "pus' " calls Is a question which
probably Mr.. Musgrave cannot untl his books
have been thoroughly examined. The failure wa
prcclpltatcd Of course by the recent advance In
prices, but it is not all certain that a similar ro
suit would not have been reached by an equal do.
cline In other words, Mr.. Mussi has been SELL
ing privileges for al least sh months for the saho
Of the premiums There has Lever been but end
TO this policy. Tho conservative methods Of Rust
sell sage received a shock few years ago. and
1t Is the common opinion in Wa4 street that he would
have saved consioo aDio money ~ prcsentns bold
hont. lhero can be no cOnpl SOn dawn betweeG
the two cases MI. sage usually made his privilege
about twenty apart but al ono time he had u
b&Tlcade the doors oi his OnCe. Mr Musgraye has
sold puts "calls7 with apparently oluai indle
terence at a nacuOn irOm tie market price, ~
questions OF his ability 10 make money ont Of tho
transaction have arisen and naturally have been con,
veyed 10 Linn, his privileges have been brought neares
to the market.
The announcement OF the failure was not sur.
prise, because ali brokers with whom the firm had
Outstanding cOntracts resolved early yesterday morn.
ING notice 10 'ciOsc them quieuy. The result was
haJ the only transaction under the rule' when tho
formal announce mcnJ was made oAc os a hundred
shares Of Northwest The amount o. tao liabilities
cannot be eStinated in circumstances. 1t ID
PLAN that there Will be many small dlde ences, but
the aggregate could b. reached only BY knowing tho
amount OF the private setteme IT.. Tne Liabilities
account OF Tho privilege may OIly DO determined
by the courts. Mr.. MusgIave az hi, Office in
forenoon, but, after giving a fow Instructions 10
his confidential clerks, lie seclud 81 himself from OBJ
servaton- AZ his Office ii said that estimate
Of the liabilities could possibly Der made because the
business had beea ta ed by the dealings In p.iyL
legcs. No estimate OF the amount OF outstanding
contracts of the notices received during the day on
privileges could be ventWed. The most that could
be said IA this way "Mr. Musgraye is all
honorable man and his wife is very wealthy; thu
creditors Will not lose anything. We cannot say any,
thing about the details of the business, because va
do not Yet know anything about them. 1t can truly
10 said however, that the failure was due entirely
10 Mr.. Musgrave's issue of opt0ns.'
Thomas b. Mussrave, the head and front of the
firm, has been known in Wall street more than 4
qua ter Of a century. HIS h.her was a wOoAoh
manufacturer at Holyole, Mass, and the son caine
into Wall Street about the beginning of the Civil
War lie has been member OF the stock Exchange
since the consolidation with the Open Board In May,
1869. John G. Musgrave, brother, was partner
in the firm until January 1, 1852, when he retired
and John p. Kelly and Henry HUM w.re admitted.
Mr.. Kelly withdrew in juno, 1887, and since that
time the firm has consisted OF Mr. Musgrave and
Henry Huhn
Mr. Musgrave has been interested always in musical
matters and his house ih Ffthave. and his cottage
| M Bar Harbor have been the of many note
worthy entertainments. In social circles his nama
| has been well known. although he has always beon
| of a retiring disposition.
/ At one time Mr Musgrave took an active interest
| In and assumed considerable prominence concerning
municlpal affairs. In tho years between lofo AMI
feeO he was a weknOwn figure In meetings or cltl-
yens and taXpayeTs called for puDuc purposes. lio
-as uarticularly earnest and jealous In regard 10
questions of public health and devoted himself Win
great energy 10 the task OF making New YORK moro
wholesome and comfortable place for residence, SO
far as n single citiZen calling for ana obtaining the
aid and assistance Of other taxpayers could accomplish
tbat result His vigorous crusade against The nulsancet
an the East River front and his dusent aDOfs' Doth
albany and I'm this city the sources OF eyil
odors and OF pestence producing innuehces DIought
him much general commentator and were producuvs
those who acted with him brought to bear on ths
Health authorities both or New fOrk anu hnss Souiy
WIS followed by important improvements anu " VI
suppression Of serious nulsances' AZ una uia' bonn9 % "a
| .bo NavnraIIty and n was thought That ho might
nossibly receive the nomination for that onoe from
one Of the political organizations. Bue ne o,VIr
tanned this ambition nothing particular calle Vi ~
ond ~ late wears he has abated his activity In city
matters and has not the front either In politics
or in public movements.