The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-11-29
GOTHAM'S UGLY FAILURE
THE FIRM UNABLE TO PRODUCE
ITS CoLLATERALS.

The Union Pacific Company Unable to
Get It's Securities When 1t Wanted
to Pay of It's OBSERVATION-DISCLOSURES
of Rehypothecated Securities Or
dered Stopped by the Stock Ex-
change.
NEW YORK. Nov. 2S.-The suspicion that
the firm of Field. Weichers. Lindley g.
Co., which failed yesterday, had rehypothe-
Gated securities held by them on loan Of
5000, 900. and amounting to $1,000, 900, de-
veloped into certainty this morning. At
the stock exchange $4,000 Of Union Pa
ciic, Denver and Gulf consolidated first
mortgage per cent. bonds were sold out
under the rule on account of the firm.
NOT A GOOD DELIVERY.
Upon hearing of this fact Judge Dillon
sent for Assistant Secretary Burnham, of
the stock exchange, and bad a conference
with him at his Office. Sydney Dillon was
present. Mr.. Burnham was notified that
the entire list Of securities are not a good
delivery. and was requested to post a no.
tice meeting of the committee on se-
curities was hurriedly called by Secretary
Ely, and they came to the decision that the
securities would not be good delivery and
posted q notice to that effect and sent word
to the various banks.
THE SECURITIES ON THE LIST.
The securities named In the protest sent
10 the members Of theiexchange include !, 900
shares Of Texas Pacific railway stock certi-
fcates; 100 shares of Oregon and Short
Line, 100 shares of Utah and Northern, first
mortgage bonds of the Union Pacific and
Gulf Oregon. Railway and Navigation Union
Pacific, Denver and Gulf consolidated 5 per
cent. first mortgages bonds, in all amount
ing to about S1.000,000.
FIELDS MIND WANDERING.
At the office of the firm Assignee Gould
said he this morning called at the house of
young Mr.. Field, but did not see him. 81
saw his physician, and learned that his con-
dition is very serious. Arrangements are
being made to send him to a private insane
asylum. Cyrus w. Field is also very Ill of
nervous prostration. / tried yesterday to
talk with Mr. Field, but found his mind
wandering, and he was totally incapable of
talking intelligently. His symptoms are not
those OF an acute mania, but he cannot
keep his mind on anything"
AT THE PRODUCE EXCHANGE.
At the produce exchange this morning
the failure was the general topic of discus
sion. The disposition was one OF sympathy,
There was an official call at 1l:30 o'clock.
but no business was transacted, and it
was currently understood that all the
grain contracts of the firm had
been settled up. As far as
speculative options go, the outstanding obli-
cations of Field, Lindley G. Co. have had
no appreciable effect on the grain market.
A prominent member of the produce ex>
change, who saw Mr.. Lndley this morn
ing, said: "The papers had a statement
this morning that the firm was short of
November corn in Chicago, but Mr.. Lind
ley denies this fat-footed."
5000 IN SECURITIES MIS- APPROPRIATED.
After the close of the stock exchange to-
day, the exchange officially announced that
the Union Pacific railroad had notified it
that securities of the face value of S1,71O,-
900 had been misappropriated, aud these
securities were accordingly declared to be
not good delivered on account of
sales made on the exchange.
The securities include S679, 900
Union Pacific, Denver and Gulf consoli-
dated 5s and IS. 900 first mortgage bonds
$4,000 Oregon Short Line and Utah
Northern consolidated IS, and S2I6, 900 coll
lateral trust So of the same company; $319,-
900 Oregon Navigation collateral trust 5s:
1000 shares Texas Pacific stock and 500
shares Oregon Short Liue and Utah North
ern stock.
STATEMENT OF THE COMPANY.
The following statement is made by the
officers OF the Union Pacific in regard to the
notice given to the stock exchange: ''Of
the securities of its system, which were held
by Field, Lindley, Weichers & Co., in re-
lation TO which the stock exchange has
made ruling that they are not good
delivery. large part were
delivered to that firm as
collateral security for three
loans which matured Nov. IS, "a and 25,
and the balance of the securities for a loan
which matured Jan. l. next. The company
has repeatedly offered to pay off these loans
since the funding scheme was consummated
aud has stood ready TO do SO, but prepay
ment was refused. Since the three loans
matured the company has made every
effort to take up the loans, but the
lenders delayed, making various excuses for
not being ready TO deliver the collateral on
receipt Of payment. The company stands
ready at any time to pay the loans on de-
nVery OF the collateral or to meet any of
It's obligations, provided the collaterals are
returned"
. Several Of the brokers of the suspended
1rm have sold the bonds and must make
oehvery on Monday to the buyers As they
are not good delivery the sellers are endeav-
oring to have the buyers cancel the trans.
actions.