Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-12-01
HIS ASSIGNEE ADMITS 1T.
He Believes, However, That the Other
Members Are Innocent.
THE UNION PACIFIC Is BITTEN.
Only $500 in Good Assets Is Thus Far Found
in the Examination.
WALL STREET TAKES QUICK ACTION

was said that a careful estimate of the ne
loss which will probably result from tn
failure of Field, Lindley, WIechers & Co
is about SSOO,0O0, of which $400, 900 vii
probably fall on the Union Pacific Railroad
Company, and the balance scattering. A
an offset to this loss there is the inyestm EN-
which the firm had made in the Cubar
sugar refneries, which is estimated at $500,
600. Whatever is realized from this asset
will lessen the loss first mentioned.
The announcement that the Union Pa
cifc Company is ready to take up the bond:
from present holders created much better
feeling in Wall street. Frank J. Sprague
mas obtained from Judge Lawrence, of the
Supreme Court, temporary injunction re-
straining Field, Lindley, Wiechers & Co.,
f. A. Hussey and others from disposing Of
certain stock of the Edison General Electric
Company pending suit for its recovery.
Edward M. Field in an Asylum.
The World to-day saws that Edward NJ.
Field, son of Cyrus w. Field, and senior
member of the firm was taken to the Bloom
ingdale Insane Asylum on Saturday.
The lnnuendoes and accusations of Wall
street, the World says, are justified. The
worst suspicious are mild compared with
the black facts Edward NJ. Field not only
rehypothecated railroad bonds placed with
him as collateral, but he misappropriated
large sums of money. He raised loans on
worthless securities, deceived his partners
and BETRAYED their implicit faith in him.
Two thousand dollars in pew rents, turned
over to him as trustee of the Tarrytown
Presbyterian Church, is missing. He was
Treasurer of the association which owns the
Washington building, collected S35, 900 in
rents and sunk the money in his struggle to
avert impending doom. Field ran q long
race with the fates. 1t is no wonder that
his intellect could not stand the strain.
AT family conference to-day. in the
brief was found to be this: Edward NJ
Fields liabilities, to satisfy the claims of
his creditors, would require Cyrus w.
Fields entire fortune and considerably
more. 1t was finally decided, in view of
the fact that even if Cyrus W. Field should
sacrifice his entire fortune, he would not be
able to meet the liabilities of his son; that
he should not make the sacrifice.
The Injury Win BE Widespread.
The more the affairs of Field, Lindley,
Wiechers & Co. are investigated, the
more widespread seems to be the injury re-
sulting from the failure. It Is now we'll
known that several banks and q good many
individuals well suffer to q greater or less
extent by reason of their holding securities
hypothecated by Field s. Co., which are
almost worthless.
The World says the failure is due to the
delay in the arrival of an ocean steamer. A
big private deal, involving consolidation
nfo oil @ho
sugar plantations in Cuba, would have gone
through if the vessel which bore the agent
of the Cuban planters he'd arrived on time
Nearly 81, ,O00, 600 of the securities had been
subscribed for and this would have given
the firm plenty of money to get along on for
some time.
The information as to the manner in
which the firm carried on their business was
obtained from interviews with clerk who
was in the employ of the firm up to the last
of August, and from talks with Assignee
Gould. The firm was constantly short of
funds. All the ready cash was used by Mr..
Field in his various enterprises. Certain
transactions show that his partners, Wiech-
all their dealings and had no idea of the
financial alterations of E. NJ. Field.
The Onion Pacific Transactions.
Regarding the transaction between the
Union Pacific people and the firm, the lat
ter loaned the Union Pacific 100000 orig
inaIlv, taking as collateral bonds worth at
worth about 81, 100, 900. The Union Pacific
people have taken up so far 5000, 600 of this
loan, and to-day owe the firm some 500, 000
The bonds are scattered everywhere, having
been rehypothecated by the firm in lots to
suit their convenience. The amount thus
of aggregates $500. 900. By this
method the firm made an average gain of 20
per cent
A number of innocent holders of the
Union Pacific stock disposed of by the firm
held a meeting this morning and drafted a
petition to the Committee on Securities of
the Stock Exchange, requesting them to re-
scind their action making the stock nom
The interests of the Union
Pacific have been placed in the hands of A.
II. Holmes Mr.. Holmes realized that it
would be impossible for the Union Pacific
10 regain possession of bonds that had fallen
into the hands of innocent holders, and re-
quested the Committee on Securities to re-
lease such bonds from their order of Satur-
day. Upon his order it was done, and the
stock can now be handled on the Exchange
There still remains a good number of the
bonds the ownership of which will likely
have to be settled in court.
Many GrumbIers on Wall Street.
The action of the Stock Exchange in
stopping delivery of the Union Pacific
bonds was severely criticised on Wall
street, and many seemed to think bad
precedent had been established. Mr. Elv,
;he secretary, tried to make it plain to the
tickers that the best thing had been done.
He said that by the action of the Stock
speedy adjustment was effected,
whereas If the bonds had gone on changing
hands lawsuits would have been the result,
and the bonds would have become SO scat
have found them.
1t was rumored that Daniel Lindley would
be disciplined or expelled from the Ex-
change for selling the bonds on the floor,
but the President says no such action could
be taken without a formal complaint, and
none has been made.
S. V. White denies owing anything to
Field, Lindley & Co., but, on the contrary,
hat firm is indebted to him. Assignee
Gould admits that there has been crooked
but attributes it all to Mr..
Field, and says he is confident that his part
lers knew nothing of it. He says Mr..
Lindley could have handled all these bonds
IN the Stock Exchange without knowing
heir history.
Only $500 in Assets Yet Discovered.
Mr.. Lindley, on account of the serious i'll
less of his wife, who is now at the point of
ieath, went directly to the Stock Exchange |
rom his home and did not go to his office |
or weeks at a time Mr.. Gould says that |
lie has found only $500 in assets, and there
nay be $4,000 available which will be used |
n paying clerks their salaries.
He denied having had a conference with
Cyrus W. Field with reference to helping !.