New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-18
THE FAILURES OF THE DAY.
roopv pIIIo1 CO.. AND RANDALL &

but only to about the ueueI cAS"''
THE FAILURES OF THE DAY.
GREGORY. BALLoU CO., AND RANDALL g
w1pRuM COMPELLED TO SUSPEND.
The foilure OF Gregory. Ballou Co.. at NO. l
New.st ia certain to lead to litigation. "me '''
shrinkaee of values In Wall Street has peeh 'e P'',
cause, il is believed by the friends OF the nr '''
excessive caution by the banks shouio DC heiu 10
snonsible for the collapse The house was organizcu
in February 1889. and consists OF Charies oesos'
Maturin Ballou and Curtis P. Gately' bo'h III,
Greoorv and Mr. Raou are members OF the S'oo~
Exchange, the former joining that Board ID june >
1893 and the latter December 81, 1ee2' Ii'o mn
of Gregory d Baou formed IN 1871 ana III ioo'
Mr. Ciately who is brotherin-law OF MI baii'u'
admitted as partner the house taking It's pfeSe''
title Its standing has been HIGH tut IT has not be"
one OF tho leading concerns in the Street. anu eso
its suspension is not regarded as important. s'rons
hopes are expressed that arrangement may DC msuo
which will enable the firm to meet Its engagements
at an early day. >,.,.
The firm made an assignment to Herbert E. DicKson'
of tile law firm of Dillon & swayne' al NO % "a ,.
ST. Mr.. Dickson said yesterday that while ne coma
,vs M idea of the liabilities or assets Of the As
sirnors lie was satisfied that their loans were amply
secured The house had been called upon Tor nioro
securities than it could put up, ana It's enpariaS'o''
conld be partly ascribed to the acton OF one pah
which was not justified by the conditions. Inc I'm
would resist in the courts the step TAKEN ps '"o
Western National Bank to convert time loan in'o
call loan.
Mr. Dickson was recent in discussing the matter, but
rom friends of the firm additional details were gathered
The particular loan which will figure IN the prospective
law suit was for $4,000. II was well seeuieu, o"0
the note given by the firm was iron-clad. oh lnurs
day the Western National Bank demanded auuiliona'
collateral as security and it furnished On sa'uf
"a fo
stock market slaughtering prices in consequence Or
acccptinc slaughter prices 1t is not alleged that the
firm could have weathered the stock panic even IL inc
Western National Bank had not demanded lis pouhu
of aesh but it is said by the friends OF the leu CON
Germ that the banks action was the last stia" which
forced the firm to decide upon suspension lhcre Is
no complaint against the other banks from which
Gregory. Ballou e. Co. were borrowing money, but
there is state of Indignation that one Institution was
SO severe in its exactiOns.
AN INTERESTING LEGAL POINT.
No details could be obtained yesterday as TO inc
character of the securities furnished as coa'erd ior
the loans secured from the Western Natlohal bahh'
The legal point that Assignee DICKSON threatens "
raise will prove an interesting one to borrowers. Inc
form of contract for Stock Exchange loans is now 1ay
uniform and it has the same conditions whe'her tne
oan is TO be paid at a specified time or whenever the
lending bank sees fit to call it. Provision Is maze III
the contract for the requirement OF addtonal marsh'
and tho Judgment Of the bank officers OF cicrhs de-
trnnes the merit OF the collateral security or the need
of additional protection against shrinkage IN market
va,ues The defence of the banks against the com
nia,nt that they determine the whole question is thai
the business of lending money Is risky that generally
only low rates OF interest can be secured ana ta'
In times like the present lenders have 10 DC care i"r
the sake OF the general public. II Is also sara 'hat
few Instances can pointed out where banks are forced
to sell out their customers collateral without notce
or private arrangement
RANDALL e. wIERUM'S ASSIGNMENT
The firm Of Randall Werum at No. so EXCHANGE
Place. made all assignment to Henry W. Barnes Oh 'he
North British and Mercantile Insurance Company az
No "a Wilian-st. Mr.. Barnes is personal irlehu Vi
both members OF the firm. lie coula give po nut"
Yesterday Of the relation of the asets TO the laDles
The firm is composed of Charles X Randall ana QUO
c. Wierum II did moderate business In investment
securities and exchange bills. Mr. Randall has been
member of the stock Exchange since May >, 1861.
The house established in 1872, Is one OF the best
esteemed in Wall street, and general regret was eA
pressed when the suspension was announcer. i. Is
said that the failure would have been avereu IL Mr.
Randall had not been i'll at his home from braih
fever His family connections were sufficiently I'M
ort.nt IN furnish the hope that he could have OBJ
tanned aid to carry the through the present Imam
cial stress. The assignment gave preferences o., 20
Hamilton L. Whtock for 81 900, AaoiSoh d. ia" 'o
r. r. Fabri with Drexe Morgan a Co., married a
sister of Mr. Randall and it was partly on thls ac.
count that the firm considerable business for tat
honkinc house The failure probably would not have
beer permitted If the health of the senior partner hd
not broKen down under the strain about week ago,
and IL had been learned that the abntcs were
not yucen 70 make the SUSPENSION n mpoan 60 and
also with Kidder Peabody Co. gave the announce
ment a momentary significance which II dld not ue-
serve.
| PURCHASES AND SALES AT THE EXCHANGE.
Tho transactions at the stock Exchange under the
/ SLAB
| announced. The purchases were not heavy, for the
| firms had long been arrayed the long" side OF
| tho market. For the account OF NILS Robeson 1"
smith there were bought 100 Lake Shore and Mlchlgan
| southern; 1000 Union Facihc Slo'ooo Nor'lrih
| Pacific general mortgage bonds. ,oo L,..o.
The sales for the same account were 100 shares
Northwestern; 100 sugar Rcineries; 800 Achson
Topeka and santa Fe 100 Chicago, Miiwaukee ana ana
| Richmond and West Point Terminal; 100 Atlantic and
Pacific 100 Iowa Central 20 Western Union Tee IeIe-
Wstc and Hudson Canal; 900 York. ontario and
Western 100 East Tennessee, Virginia and Georgia
ToIedo' Ann Xrbor and North Michigan irsts 900
| New-York Ontario and Western consols 1900
ouisViiie St. Louis and Texas rsts; $1,000 New
Jersey Central FIRST IS; s 600 St Lonis Iron Mountain
FUNDED SIS s 5000 Atlantic and Pacific incomes.
The so for ana inSr ahra %'r%%
northern Pacific 6 spd sas sn "nS
| 400 Columbus Hooking Valley and Toledo
s:s c 5 s ssa Sa GS s
| 100 NewYork, ontario and Western; 100 Virginia
Midland T4a Richmond and West Point to Terminal l9G
wanliee and st. Paul. 400 Loli,yille and Nashville
North 200 Moro 100 and Wes5@ pTd
Northern 100 louisville Louis and TEXAS a. ooc
w end P PeS ssos trust s
Peoria and Eastern tirsts 81 600 Mobile and Ohio
| general AS $4,000 Prairie du Chen rs; al, Oot
| Ghore