New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-12


vestment was excited by the unnatural depression
The squeeze in money rates and the crash
in stocks dragged two firms and one individuai
broker yesterday into insolvency. The hrst iail-
ure, that of C. NJ Whitney Co.. created sur
prise, because of the high standing OF tne hrm
as q house devoted to an investment BUSINESS
which is generally supposed to escape the rishS
attendant upon the transaction OF large specui"-
tive operations The second failure was tha' oi
Decker, Howell e. Co., and, while not whonS
unexpected, the announcement was deemed 10 pe
the most important one of the day. Inc ia'e
suspension of David Richmond was recognized
as comparatively unimportant
FAILURE OF DECKER. HOWELL & CO.
A steady outpouring of the Northern racine
and the North American stocks at the Stock En-
change at rapidly declining prices had prepared
Wall Street for the news that Decker, howeh
& Co., at No. A Broadway, were compelled 10
suspend. The house was known to be carrying
large amounts Of the so-called "Vulard" stocHs'
and the previous declines in their prices had
few weeks ago aroused fear that 1t could hoo
weather the storm. At the same Time many
persons had supposed that the liquidations at ta'
crisis had relieved the firm sufficiently to enape
II To continue its heretofore prosperous career.
General expressions Of regret were heard whep
the news of the suspension became pupiic, as
tbe firm has long and honorable record In wall
Street. and its members are popular. The hrm
WAS organized on January 1, 1881, and consisted
of Joseph S. Decker, George II. Howell. William
A. williams and William Evans, jr All puc
Mr.. Williams are members of the Stock Exchahee'
Mr. Decker Joined the Exchange on March q, $780,
Mr.. Howell on January 13, 1872, and Mr. Evans
on February 3. 1874 Mr. Decker for over
boap StOcK
change circles. and the firm organized in 1881
onIv succeeded number Of combinations pre-
vious,v made which had been successful In
business Among the styles under which tho
nrincinaI members had conducted business were
leonard. Sheldon & Foster, Leonard. Sheldon q
% and leonard Howell g. Co. Mr.. Howell Is
son-in-law of Mayor Filter, OF Philadelphla
| IJo entered the firm Of Leonard, Howell q 20
| an 1874 and the successor firm was that whlcn
| susnended Yesterday. Mr.. Decker had Deen
ORIGINALLY q partner of Turner Brothers.
The sales under the rules of the Stock exchange
| FOR account of Decker, Howell g. Co.. were as
follows: Wisconsin Central, 200 shares Nor'nerh
Pacific preferred 300 Northern Pacific common
| Q 400: North American, 3.1O0; Great Noroherh'
| Aoo Edison Electric Illuminating Company, 4oo !;
| western Union, 100 st. Paul, Minneapolis ana
Manitoba. 100; Toledo, Ann Arbor and Nor.h
Michigan. 200 Missouri Pacific, 100; Sugar he-
iineres Company, 800 shares.
The suspended firm has done heavy business
| in stocks and bonds for years. For long tine
mast it has operated for the North American Conl-
nany. the successor to the Oregon and Iranscoh-
| tinental COMPANY Henry Willard has been sus-
pected of having large accounts with the house'
| but the members of the firm dlscaimed che ''e''
tb,t c,er failure was. due to any of his personal
| ;l,ol fIotr
| strincenev in money, which embarrassed them ln
,ho Iapdlino of their large business. The con,
tinuance Of the stringency in money, assisted py
| hear attsclss upon the credit Of the concern
| 6nallv brought the house face to face with
nraeticaI inability to obtain funds. 1t Is said py
| some persons who are in a position to know the
facts that even the stress of funds would not nave
carried the house under had it not been that the
North Americau Company refused to take up loans
which Decker, Howell & Co had negotiated foI
| the company. Henry Willard is now in Europe
| and furnished no assistance.
| II is generally hoped that the firm may be able
to resume ere long. Mr.. Decker himself declared
that there was nc lack of assets in control of the
house. but that if depreciation in values was con-
tnued at the recent rate the future was uncertain
William Nelson Cromwell to whom the firm made
an assignment, said that If the creditors showed
good Judgment in handling the firms securities
they would realize their claims in full Friends
of the 6rm felt confident that the action of the
Clearing House Association in expanding credits
| would enable the house to make full adjust
ment in time
STATEMENT OF MR.. DECKER.
Joseph S. Decker made the following statement
in regard to the failure Of his firm Our trouble
has come upon us chiefly from the troubles IL
IL c&.,,,. IN mar
the want of confidence which has been felt IL
Wall Street since August last. While we do {
general business. we are interested chiefly IL
Willard stock and have been carrying large lin'
of North American. Our obligations are chiefly
i'm behalf of the North American Company. Ou
credit has been such that we have always beeI
able to get all the money we wanted from thu
banks and private banking houses. We hav,
never been known as borrowers from the Stool
Exchange itself, but the recent stringency IL
money and the difficulty of obtaining money oI
the usual cOllaterals has forced us 10 do, durins
the last two months, what we have never done
before: to go on the Stock Exchange and borrow
large sums Of money, yes, very large sums, from
day to day. That was SO unusual for Decker
Howell & Co. that it attracted general attention
and we were Obliged to borrow millions OF dollar
| day. which made our situation worse. Durinl
the last few days it became about impossible To-
us to secure money. Finally we had to have as
sistance to meet the emergency by suspendng. 4
year ago we had ample security, but our stocks
were of special line. We were known as Vii
lards bankers. and had only security on hi
stock TO borrow on .
Speaking of the liabilities of his firm, Mr.
Decker said Il cannot tell exactly what our la
bilities are, but am afraid that they will aggre
gate fully $1O,000,000 Still, every dollar OF II
is secured. The money is due almost entirely u
banks and bankers from whom we have borrowed
money. and who own ample securities IN the shap'
of Willard stocks Mr. Willard is in no way re
sponsible for our trouble. cannot say that ON
difficulty came about through relations witt
the North American Company.
c. NJ. WHITNEY CO. COMPELLED TO SUSPEND
The first failure yesterday was that OF Z. NJ
Whitney & Co., bankers and brokers OF NO. "
Broadway. The announcement of the failure was
made on the floor of the Stock Exchange at 10 :5e
a. m. Ii was not wholly unexpected, though Il
was the first resulting from the heavy decline
in the market. The assignment was made tt
George w. Quintard, of No. a22 rlith-ave. Mr
Quintard took possession Of the office OF the urn
shortly before noon, but neither he nor the mem
bers OF the firm would give any Information con
cernng the firms condition or the causes OF thu
assignment On the Street it was attributed by
| some to the fall In Southern securities In which