New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-29

Union Pacific and Gulf first conso 5s s!52 oco
oregon oregon Short Short Line and Utah Northern collateral
Oregon Railway and Navigation collateral trust 90
Union PaeInc. Denver and Cult first mortgages 5000
r0,,, bond, 81 SO 1000
Texas Pacific stock 600 shsre. ccS 200 100000
sharcs ""'O'N
rot., .toc. ... $4,000
In explanation of the action of the Stock En-
change Committee, Secretary George W. Ely said:
Reclamations can only be made up to to-day
that is to say, those people who have the bonds
in their possession now cannot sell them and
make delivery of them. The bonds rest now in
the hands of the parties who hold them, until the
matter shall have been decided in the courts.
AN OFFICIAL STATEMENT.
The following official statement was given out
in behalf of the Union Pacific Company
The securities OF the Union Pacific Company which
were held by Field LndIey, Wechers Co, In relation
to which the committee of the stock Exchange mas
made ruling that they are not good delivery were
delivered to that firm collateral securities for three
loans, which matured respectively November 10, II
and 25 and n loan which natures In January next.
The company has repeatedly offered to pay on these
loans since the funding scheme was consunmatd q WIN
Drexel Morgan & Co., and has stood ready to d. so
but prepayment was refused Since the three I0ans
matrred the company has made every ehort 10 taRc
up the loans but the lenders deayed, not being ready
TO deliver the collateral the receipt Of payment
The company stands ready at any time 10 pay thc
loans on delivery Of the collateral or to meet any OF
It's obligations thereon provided the collateral he sur
rendered
The principal point that could not he broug|
home to the two parties to the transaction lnvoV-
ing the Union Paci6cs securities was this; Had
Mr. Fields firm any authority to Use the pledged
securities to borrow money on? In other words ::
Was there ANYTHING criminal in the conduct of Mr..
Fields firm9 The members of the firm denied
themselves to reporters. The assignee, Charles W.
Gould, said that he could make no statement as
TO the condition Of affairs, but he did not
think from all the information available.
that there had been any rehypothecation. Ar.
Gould was assaled all the morning at the office OF
the suspcn5ed firm with demands and notices from
brokers and customers who have had dealings with
the concern and who were seeking TO place them
selves legally in a good position as early as pos
sibe lie is said to have gone out of the city
soon after noon to remain until tomorrow.
Almon Goodwin of Vanderpoel. Cunning e.
Goodwin who is counsel for the assignee, said
that he had had only few minutes converse
ton with Mr.. Gould and had not gathered enough
information to permit him TO speak intelligently
on the subject. lie hoped by tomorrow TO be
able to give some information. Mr. Goodwin
declined TO discuss the question of the principle
of rchypothecation, and said that its crimnality
was dependent upon the circumstances in each
case.
The officers of the Union Pacific also confined
themselves to that statement, which does not. cX-
cept by implication, deny the correctness of the
Vii
TO whether the Field firm may not have had some
authority to use the bonds to obtain money. A
financial officer said that there was nothing in the
terms of the loan which could be construed to give
this authority to the firm lie added: There
is no necessity for legal in 'unction after the
action Of the Stocl; Exchange Committee
to-day No INJUNCTION can be obtained until
the arrangement of the legal complication as it
stands Where bonds are hypothecaed and then
rehypotlecated, the third person is a holder for
value to the amount of advances made by him,
bue he can he prevented from disposing of the
securities until all respective rights deter
mined
SELLING COLLATERAL BONDS
| George H. Watson, of Watson Bros, the Stock
Exchange firm which Friday sold a large
| amount of Union Pacific, Denver and Gulf first IS,
lateral held by us to secure loan to Field, Lind
! lev. Wiechers & Co. The loan was made in the
ordinary course of business and we had no knowl-
edge of how they came into the possession of that
firm. We called our loan and VIXEN the money
WAS not forthcoming, we sold the bonds. we
| do not recognize the Union Pacific in the mat
| ter and we are innocent parties who have simply
| exercised their rights" Mr. Watson said that his
| firm still held some Of the bonds, from which tho
quality of a good delivery had been taken or
course no attempt would he made to dispose
| of these.
| transaction at the Stock Exchange excited
considerable comment. There were $4,000 Union
Pacific, Denver and Gulf frsts sold out uncer
| the rule. by direction OF Woerishofcr 20.
| Colonel j. G. Rcih, in behalf of the tirm' SAID
that the bonds sold had been purchased Tor the
account Of the Field firm prior to its failure, ana
were sold in consequence OF it. Coonei KEN
could not throw other light on th, transaction
but the purchase has suggested the theory that
Field. Lindley, Wicchers & Co. may have been
secretly attempting to replace, by purchase in
! the open market the securities Of the Union Pa
cific which had been hypothecated by them.
| Opinions are divided in Wall Street as to the
| claim raised by some OF Mr. Fields friends that
| the firm had understanding by which they
| could repledgc the Union Pacifics securities The
| loans were made at time when the credit ol
| the company was virtually exhausted, banks and
trust companies refusing to make further advances
| The theory is prcscnted that the company may
have used the firms credit in place of its own
II is argued that tn, firm did not possess sufficient
| financial strength 10 undertake single loan oI
100000 or $4,000 which is the amount ol
the money which the company Is supposed to hav,
| secured on IFS collateral But in reply TO this
Lii il denied that the firm did not possess sufficient
| credi. to warrant undertaking such loan, and II
| is also pointed out that the firm received ne"
blood when John f. Wiechers and Herman e.
HiIuers became partners last April Mr. Field