New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-28
EDWARD NJ. FIELD INSANE.
HIS FIRM FORCED TO MAKE AN ASSIGN
MENT

THE AFFAIRS OF THE BROKER IN CHEAT IoN-
FUsION-FEARS THAT UNION PACIFIC BONDS
NAVE BEEN NREHYPOTHECATED-I MAY
BE A MILLION DOLLAR" FAIL
.URE-CYRUs W. FIELD CRUSHED
BY FRESH AFFLICTIONS.
The suspension Of the firm of Field, Llndley'
Wiechers & Co. yesterday brought double piow
to Cyrus w. Field, who is already crushed oy 'he
weight of the loss of his wife, who died on Mon-
day. His eldest son, Edward NJ. is the mead Oh
the house. and with its collapse comes the reveal
ton that a mental disorder has Selzed It's senior
member. Only consolation remains 10 tne
afflicted family, the fact that this mental illness
NAV prove to be the explanation of proceedings
in the conduct of business that otherwise might
raise the suspicion of disgraceful irregularities.
The affairs of the firm are plunged in disorder, and
it will be some time before they can be straigh~
ened ought Explanation sare needed as to trans
actions which according to present lights strongly
flavor of rehypothecations of pledged securities.
Edward NJ Field is said to be insane. HIS case
Is not violent, and strong hopes are entertained
of his recovery, But his mental disorder reached
a point where the intervention of friends ana tne
action of his partners became necessary TO pre-
vent a further disorganization OF the business
affairs of his firm. The suspension was not
surprise to Wall Street in sense, for the credU
of the concern has been impaired for some time-
It caused decided astOnishment when III was an
nounced that Mr. Field was mentally uhoaance"
and the scepticsm of some persons went 10 'he
verge of regarding the plea as shield 10 cover
improper conduct.
A still further affliction to the Field family is
the probably mortal illness of the daughter VI
CYRUS w. Field: who married Daniel A. Llndley'
a partner in the failed firm. Mrs. Lindley mas
been ill for some time, and the deatn VI
her mother aggravated her illness Her nus
band intended taking her to Lakewood, ~
j., but her strength gave out oh
the journey from her home at Dobbs Ferry ana
She was compelled to stop at the Everett House.
Living at the point of death, it is feared, she may
be in ignorance of the sorrows which are multi
plying about her father The elder Mr.. Field was
brought from Ardsley, his country home. to his
home in Gramercy Park yesterday morning. lie
lies in critical condition, overwhelmed by the
misfortunes so closely heaped together.
MAKING THE ANNOUNCEMENTS
The announcement of the assignment was mace
shortly after IL o'clock yesterday Charles W.
Gould, the assignee, was said TO nave
been at the Office of the firm i'll the morh-
ing lie hid himself from newspaper reporters
successfully until Tribune representative sue,
ceedid in the evening in obtaining statement wncp
is printed below At the Office of Field, LindieS'
Wiechers Il CO. in the afternoon long wall was
suffered by Sidney Dillon, president OF the union
Pacific Railroad, General. Grenvie NJ Dodge d
member of the executive committee ana eA-ou'se
John f. Dillon, counsel of the company IheS
left the Office without obtaining sight OIL MI.
Gould. s'..
Mr.. Dillon was asked what light he could throw
upon the failure. ..
~Nonc.p he replied briefly. Il have some clients
whose collateral is missing and L am trying 10
find out where it is" Later in the day treasurer
Ham. of the Union Pacific, explained that the
company had borrowed money from the faiieo
firm, pledging as collateral Union Paclhc ana
Oregon Short Line bonds, and Union faclhc
Denver and Gulf stock When, in the lattcr
part of last September, the Union Pacific Company
arranged its floating debt by the issue of three
year collateral trust notes it sought 10 take up
this loan. Mr. Field demurred and expressed
his satisfaction with the loan, which had been
made on time and had not matured. These are
the securities which are now missing.
and which the Union Pacific people
feel convinced have been re-hypothecated by
the firm. They have been hypothecating and
selling these securities said Mr. Ham, "but VIII
sav that an Injunction will be obtained to prevent
the transfer of the bonds that have been sold
to-day
IT, is estimated by good authority that the
securities which the Union Pacific people are un-
able to fnd represent collateral for loan OF
between $1,000 and 100000. In connection
with this it may be well to note the sales at the
Stock Exchange of some of the bonds of the Union
Pacific and its allied companies. Oregon Short
Line and Utah Northern Consos, S27, 900 at "A 3-4a-
"A 7.sa54: Oregon Short Line IS, S350OO at
81 O2a1 O2 Ia: Oregon Railway and Navigation
5s Ss. 900 at 94a94 IA; Union Pacific, Denver
and Gulf firsts, 81 900 at 73 l-2a13. The
sales of the last-named bonds were the most con-
spicuous and the price represents drop OF
per cent The selling is said to have been done
by Watson Brothers, Stock Exchange hrm at
No 36 Broad-st and these are the bonds winch IL
is believed will form the basis of the possible in
junction proceedings The sales were made late
IN the afternoon after the announcement of the
failure, and the fall in price was not
justified BY any developments in the affairs OF the
Union Pacific Company, the price OF the STOCK
having been decidedly strong.
1t is evident that there was a general fear that
Mr.. Fields maady had led TO other disorders
in the affairs of his firm, for there were many
visitors to the Office anxious TO ascertain the con-
dition of their collateral +. Il. Thurber was
among those who called, but he said TO reporter
that he had called in the interest of friend.
MIR. Field had charge of the financial operations
of the firm, and in his present condition Is SAID
to be utterly unable to explain matters to which
his attention has been called by his partners ana
by Mr.. Gould the assignee. How far these COM
plcations may extend it is impossible to tell, but
in its direct connection with the Stock Exchange
little effect is expected. The announcement OF the
failure yesterday was followed By rally in prices.
as it was generally believed that the concern had
been operating on the short side OF the market
Mr.. FIELDS INCAPACITY
Extensive private settlements are understood
to have preceded the formal announce
ment of the suspension. These settle