The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-09-23
THE WHEEL OF FORTUNE
Deacon Stephen White, of Wall
Street, Goes Broke.
COLLAPSE OF CORN CORNER.
A Clique Bought Ten Million Bushels.
and the Market Fell.
If the Farmers Had Held the Crop the
Spectators Would Have won-Tbe
Big Failure Causes Little Excite
ment-A Daring Operator Ruined.

OF ). V. White IL Co., of New York and
Chicago, was made on the stock exchange
this morning. White says the failure is
due to long speculation in corn and not in
stocks
The liabilities of the firm are very large,
but only few hundred shares of stock are
outstanding on contracts. The climax of
today's catastrophe has been approaching
Its elimination for the last two weeks
The news, which had been carefully
guarded, leaked out yesterday afternoon
on the closing of the stock association.
An assignment of the assets of the
embarrassed firm was then said to have
been made, but not recorded. 1t was only
after thoughtful consideration and a very
complete review of the situation that it
was decided to make an assignment for the
benefit of creditors. There are no con-
tracts outstanding on the stock exchange,
and no excitement was caused by the an
nouncement. The members of the firm
were at their Office, and when the an
nouncement of their suspension was made
Il. L. Stedman, as a friend, was authorized
to make the following explanation:
The cause of the trouble is due wholly to the
decline in corn. The house has been heavily
'long on September and October corn, and the
immense receipts were too much for it to stand.
The private fortune of S. V. White, so
long noted for the success and boldness of
his speculative deals, is estimated at 81
100000. A number of firms who were
borrowing stocks from White & Co., re-
celved notice before the opening of busi-
ness today to sell their shares, and the
market took their stock with scarcely
tremor. The failure caused but little ex-
citement on the produce exchange, for the
reason that but few of the members are in
terested in the deal. 1t is stated that it
Will affect Chicago principally. The price
of corn dropped y cents at the news of
the failure.
The office of the firm after the announce
ment of the suspension was crowded with
bankers, brokers and reporters, all irving
to get some information regarding the
failure. The firm, however, had no formal
statement to make. 1t was noted that for
some time it had been preparing to meet
the disaster, which was seen to be newt
able when heavy deliveries of corn began
to pour in, and for some days the firm has
declined to take any large deposits.
Before the formal announcement was
made here that the firm had gone under.
commission brokers advised their custom
ers TO be prepared for it. This advice
started heavy liquidation, and caused the
first genuine reaction that has occurred in
the stock market for six weeks; but Lack
awanna, which always has been considered
under Whites influence, declined only |
per cent. Fears were expressed on many
sides that other houses would be involved,
but members of the embarrassed firm saw
no other firm was involved with them.
The members of the New York house are
s. V. White and Franklyn W. Hopkins.
The opinion seemed to be this afternoon
that the firm will resume.
CHICAGO, Sept. 22.-The effect of the
failure of S. V. White Il Co. was discounted
in the lower figures which prevailed at the
opening of the Board of Trade this morn
ing and subsequent trading led 10 adj
vances in the pits. Before business began
the secretary of the board gave notice that
White & Co., finding themselves unable to
meet their obligations with those who
had been trading with them would be
closed out under the rules. This an
nouncement, though not unexpected in
some quarters, created CONSERVATION
for moment, especially in the corn
pit, where the firm had the heaviest lines
of open trades. This firm was known to
be the leading one of band of brokers
who have been representing a clioue in a
bull deal which has been running nm Som
tember and October corn for several weeks.
Many millions of bushels of Septemher
corn and October futures have been hougbt
by this syndicate, whose identity traders
have in vain tired 20 discover. but whose
names may come out as a result of todav's
failure. OF course the corn Dit was the
center of attraction and a wild scene was
enacted the moment the bell tanned Trad
ers clambered over each otherin their effort
to be heard, and all sorts of prices were
asked and bid at the same moment Octo-
ber in which most of the unsettled trades
existed, closed yesterday at 5ls<c. and at
the start there were few trades at and
around 4Sc for that future, but sellers
quickly advanced their prices, and il was
not until 49l4c was reached that trading
actually became active and the market
strong between 49Gi934c, an immense
amount of grain being bought in the ex-
element. Then the market began tn o,Iiet
down, whether because the trades were all
covered. or because cooler heads had de-
cided TO prevent panic by waiting until
matters had Quieted down. cannot be de-
termined By IL 80 O'Clock October had
dropped TO 1870. September, the other
bull feature, which closed AT 52sIc yester
day. opened 1T SOC, then sold down tn aqc
during the same time. Open trades in
this month were not So numerous becausa
it was understood about % per cent. of
them had already been settled by delivery
Of a cash article Much of this still re-
mains in the market and is looked upon
as menace to cash prices.
White & Co. had a line of trades in
wheat but not nearly so large as that in
corn, and the government of wheat ia
largely in sympathy with that of corn.
December wheat, which closed Yesterday
at $Leo5s, opened at $685., sold up to
99it ana down 20 @91E nj 1880.
The firm had also some dealings in nro-
visions, but they were not numerous and
were soon closed out. The impression on
the board seems to be that the effect of the
failure has spent its force. unless further
complications not now foreseen follow.
Manager Allen. Of the Chicago branch Of
the house could not be seen. and his as
sistant said il was impossible to make any
sort of statement regarding the firms af-
fairs.
The comparative easiness with which
this market stood and absorbed the i'm
mense offerings of corn is generally re-
marked with surprise and pleasure by the
trade. The amount of grain which the