New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-12-01

| "I had said that no bank would be involved in
! this failure, but it now seems that one or at
most two, will be involved to small amount
| The losses so far as | can Sec from the failure
are going to fall on tne constituents of the firm
| the depositors and others doing business with
them. The books are now being written up and q
statement made out by the clerks Of the house
! have not deemed it necessary to call in outside
| help
| THE REIIYPoTHEoATED STOCKS.
There was considerable adverse comment on
| Saturday and Sunday on the action of the Gov
erning Committee of the Stock Exchange in de-
claring the rehypothecated securities of the Union
| Pacific Railroad Company not a good delivery
Complaint that this tying up of the securities in the
hands of innocent holders would lead TO great
| embarrassment was general. A meeting of promi-
nent bankers was held at the Windsor Hotel on
| Sunday for the purpose of discussing the situa-
| tion arising from this action Of the Stock En-
| change. At least six or seven banking firms were
| represented similar meeting was held yester-
| day morning in the offices of l. Il 8. WOrmscr.
| Committees were sent to the Stock Exchange and
| Union Pacific Companys office. The Union Pa
| cifc people declared that they stood ready to
| secure innocent holders Of their securities from
| loss. The prompt action Of the Stock Exchange
| on Saturday had made it possible to
| locate almost all of the rehypothecated
| securities. AS a result of the confer
| ences of the bankers, the Governing Committee
| yesterday declared all stocks held by innocent
parties to be released from the ban placed upon
the securities on Saturday. These securities were,
for the most part, easily traced, and the following
| numbers Of Union Pacific, Denver and Gulf bonds
! were declared good delivery: Nos. 1889 to 3,
$40 inclusive, 3,s49 TO 1852 inclusive 5,S62, D.
| 1868, 5,6l2, 5,613, 1874 to 1893 inclusive T.
S27 to 1881 inclusive, 1O,S91, 10,903, 1926 to
13, 800 inclusive 1921 to 1926 inclusive, 49,
| 241 to 13,243 inclusive, 1926 to 13,24S in
elusive, $50 to 1925 inclusive, 13,240, H.
| $40 TO II ,943 inclusive
This action relieved in great measure, if not
altogether, tho embarrassment that had been
brought about by the condition of these securities
PRECEDENT DILLoN's STATEMENT.
One Of the serious developments yesterday, as
has been stated, was the direct assertion Of the
Union Pacific Railroad Company that the securities
| placed by them with Field; Lindley Wechers &
| Co. had not been rehypothecated with their
heretofore prevailed in Wall Street that the loan
| from the firm had been obtained at time when
the Union Pacific close pressed for money, and
| could not obtain it in the ordinary channels on
! the securities they had to offer. IL was argued
| from this that private arrangement had been
| made between the two companies by which 1t
| was understood that the securities were to be re-
hypothecated in order to raise the money required
| at the time by the railroad company. The
statement e-5ucd on Saturday by the Union Pacific
officials, did not meet this point fairly, and left
| the charge of rehypothecatiOn merely as an in
| ference from their other assertions
Sidney Dillon, president of the Union Pacific
| Railroad Company, when seen yesterday, posi-.
lively and emphatically. denied that his company
had any knowledge whatever of the fact that
Field, Lindey, Wiechers K Co. were rehypothe-
eating its securities We had not consented to
the rehypothecation OF our securities" said Mr.
Dillon, land did not not know that it was being
done"
| tbotI Io lol 49,
| firm had rehypothecated the securities at an ad-
vance over the amount for which they were placed
This fact adds to the seriousness of the offence.
of the Union Pacfe's loss. II would not be large,
he thought, but no, idea of its size could be
formed until it was known positively what sums
the securities. The loss to tie Union Pacific will
| be the difference between the amount borrowed by
the Union Pacific and that secured by the firm
Mr.. Dillon took philosophical view Of the loss
saying that it would be lessened by the increase
in the market value of the securities.
SEVERAL CHARGES DENIED
When Tribune reporter called at the office
| of WOerishOeter * Co. TO inquire about the truth
Of a published story that that firm had been
largely interested with S. V. White and Field,
| Lindley, Wiechers & Co. in the corn deal of last
| September which brought Mr.. White to grief, he
was told by member of the firm that there was
nothing in it." Pressed for more explicit
denial the member said that the firm had nothing
| to say. Later in the day Colonel Ref another
| member of the firm, made the assertion that
| Woershoeffer d Co. had lost nothing through
| their connection with Field. Lindcy, Weichers
| II Co. 1t true that they had had difficulty
in getting the money due them on loans, end
| after pressing for settlements had been obliged
to sell the bonds deposited as security in order
| to protect themselves
At the office of S. V. White & Co. it was said
that il was not known what interest, if any, Mr.
Field had had in the corn deal. Mr. White
| had left the office for the day, and his partners
said they could not speak for him on the SUD-
| ject
1t was charged yesterday that Edward VI.
Field had been guilty of approprlatlng TO MS
own use, entirely outside of his business, large
sums of money that had come to MIN as Il trustee
| of Tarrytown church and as treasurer of the
association that owns the Washington Building
John Lindley, president of the Washington Build
ing Association said that he had investigated the
matter thoroughly and could not find that Mr..
Field had appropriated any money collected for
rents, as charged. He denounced the charge as a
contemplate lie" As for the $4,000 in pew
rents of the Tarrytown Presbyterian Church, Mr.
Lindley said that he had made inquiries from
many members of the church and they all de-
clared that the church's money was intact.
John Clatiin, who was said to have taken a
large amount Of the bonds of the Cuban Sugar
Corporation, after a half hours investigation, said
yesterday that he never heard of il before. lie
had never done any business with Field I4indley,
Wiechcrs q Co., and Mr. Field had never ap-
preached him the subject of subscribing for the
sugar bonds.
The assertion that Field, Lindl,y. Wechers &
Co. were compelled at times 10 spout" stocks
that is to have stocks which suddenly came into
the office sent over to LapSley ~ Co.. and sold
for cash at loss Mr. Lapsley declares is untrue
What few dealings we ever had with Field.
Lindlev. Wiechers & Co. were perfectly regular
said Mr.. Lapscy. Our transactions with them
were not heavy and was any account
with the firm large enough TO do any body any
harm, matter what the result of the deal.
EDWARD VI, FTEJDE CONDITION.