New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-05
UENRY ALLEN e. co. SUSPEND.
CORDAGE PEOPLE DRAGGED THEM DoWN'
THEY FAILED To COVER MARGINS WHICH THE
FIRM CARRIED.

FIRM CARRIED
The excitement Of the day began with the an
nouncement that Henry Allen & Co.. the well known
stock brokerage firm. had suspended owing 10 the
failure OF certain of the men who had been carrying
the Cordage stock margins keep their agreement
to cover margins. There the greatest excitement
the Stock Exchange when the announcement wac
made. The floor OF the exchange was crowded with
brokers. and the galleries filed with spectators
who watching eagerly the excited actions OF
the brokers. The failure not announced until
twenty minutes after the exchange opened. but every
the floor seemed to be- expecting that some
thing of the kind would happen, though having no
idea that it would come from this direction. Tn"
utmost sympathy was expressed for the firm OF
brokers, as IT is Of the most popular In the
street. As the first excitement at the an
nouncemcnt of the failure over. inquiries were
made a To the OF the firms trouble. 1t gen
orally was supposed that the firm did strictly com
mission business and that ii would not therefore BE-
involved account OF the falling of In the price of
stocks The failure made Mr.. Allen Ill. and he wa
compelled go to his home but his partner, F.. L.
Norton prepared and gave ont the following state
mcnt a few minutes after the doors closed:
All the transactions OF the house have been for the
account Of The firm has been strictly doing
commission business. Every account had trusted cur
toner back In the bad breaks in market values
Yesterday margins of important customers were
exhausted but as these only repued
to be solvent but very rich the Arm took OF
their accounts of pledges from
that about $500 900 in cash would be
paid back before 1916 O'Clock tn, morning. These
promises kept and the firm had no other ie
but suspension and to make assign
ment the assignee being W. o. Hamlin.
There much speculation TO who were the
important customers who had failed to keep their
pledges and pay back 10 Allen a. Co. the margins
which had been advanced by the brokers TO carry
their customers along until yesterday morning Rumors
immediately
men who were trying TO carry the National cordagc
stock In the face OF the pounding which 1t ha' been
getting since last Friday. when il quoted AT o.
Among the mentioned carrying large blocks
OF the Cordagc stock on margins was James NJ
Waterbury. the president OF the National Cordage
Company and the capitalist who was mainly responS
bic for the organization Of the trust. At first Mr.
Norton would not indicate who the customers were
who had failed to up TO the agreement 20 carry
the margins Wednesday night, but later In ia"
day he told reporter that they were the National
Coidage people. II was a subject for wonder that
the loss Of 100000 would break down such firm
as Allen & Co.. but Mr. Norton explained 1t this way
The amount that the Cordage men failed TO pay ut
the time promised Represented only the amount OF
the margins that carried for them since yester
day. before That they owed us S4Jo.ooo TINS
makes $3.50 900 that the CoIdage people owe us
When the time around for the Cordage
element to send In check 10 cover the amount OF
the margins which the brokers carried for them over
night ard the check did not come, MI. Alien ann
Mr. Norton took legal advice and mad" the assign
mont TO Mr. lIamlin. who Is the manager OF me
firm Mr. Allen and his associates SUSPECTED Oh
Wednesday that everything was not Heh' WIN NV
National Cordage combination. for they kept n'rHA
at work In the once until O'Clock yesterday morn
Ing on their books and accounts ~ sp''c VI Az
this preliminary work. no statement OF inv MI"
1nancia! condition could be obtained YESTERDAY
Late Yesterday afternoon Mr.. Norton SAID that
they hoped TO be able TO resume business III da'
or two lie thought that the firm had resources
that woud put II upon It's feet soon. lie then re-
heated the statement that he made carrier III 'he
day that every account on the books mao ""o.
worthy customer behint II. The extent OF 'he ia''
ure was variously estimated Yesterday al from |oo'
600 TO 81 100000. but AZ the statement oil I'VE nc
counts not cOmpctch, these coth''tcH "'' nv
alt, gethcr trustworthy.
The stocks sold on the stock Exchange nnder
the rule on account Of the firms contracts amounted
to 500 shares, distributed as follows:
Rock Island. 400 shares; Western Union T"ie
graph Company. 100: Lead Trust (comInoh)' wv
chicago Gas 700; Reading Railroad. 240O: Wills
KEY Trust 800; National Cordagc. 2.200; Chicago
Burlington and Quincy 900; Ncw-NOrk and New
England. 300; Pacific Mall, 100; Northern Pac'hc
fnreferrcdl 100: Missouri Pacific, 800. IocRihg
valley. 200, Union Pacific. 400; Illinois Central
100. and Union stock Yard (ChIcago). 100.
The stocks bought In for the firm TO fill contracts
amounted to 4. 600 shares, divided ms follows:
General Electric Company 1907 Lead Trust (com
monl 3.4O0: Lead Trust tpreerred 200 81
Paul 1901 Cotton OIL common), 500: Delaware
Io,kowanna and Western. 100. and Louisville and
Nashville, 200.
Allen & co. also members # tie Produce
and Cotton exchanges. They had outstanding
accounts On the Cotton Exchange but were long on
wheat and corn, both the Produce Exchange here
and I'm Chicago. The notice Of the inability Of 'he
firm 10 meet It's contracts was posted on the Prnncc
Exchange a few minutes after the announcement had
,ecn made In the stock Exchange. Under the rules
Of the Prodnce Exchange three days time are allowed
In which 10 settle up accounts. Aer the first call
v.,erdov $40 900 bushels Of wheat we're sold under
Tho r,,lc OF this SOB 900 bushels July whe'f.
rncre were also 10000 bushels OF corn sold for the
firm account. In Chicago on the l'ourd of i'ade
, GOO 600 bushels were sold one OF the pcu"'r
features Of the closing out was the manner IN WHICH
rho trade went to the assistance OF Allen & Co., ana
rs,ead Of their selling out at loss, the market I'm
proved slightly. score or nor" OF the members
y, The Produce Exchange jumped In and took the
wheat rs fast rs II WAS offered Most OF me w"ea
sold brought from rs I-2d 7s "a CENTS There mas
NOT bccn so large u failure Oh the Trodnc" Exchhnge
=, oyer = year Field. Lindey a. Co.. who went
under last spring only had $4,000 bushels of whea'
md 20 900 bushels OF corn sold under The rule lot
them. An. ..o
rho firm OF Henry Allen d Co.. whose ofces are
, W n Newest organized In 1854 rs grain
anchorage house II consists Of Mr.. Allen ana MS
te,son Edward l.. Norton. Both OF the members
81 The firm are extremely POPULAR and they soon Cd
,.,,ed n well.paying business on the Produce TX
ahonge II 1886 II ives determined to 60 into The
tex brokerage business and the arm moved ron
-. oN,ce. near the Produce Exchange to the nesh
horbood OF the Stock Exchange. Mr. Norton became
-. hoard member OF the last named Exchange. me
onnsr,,y and prosperity Of the firm went with II 10
Wall street. Hranch houses were established N r The
nd
dep" always has been an energetic one and som 'n. Or
the Im utth lis aid Among the concerns that this
r ,rried through was the Cordage Trust when WI"
the iila s M siwsys had command Of a large amour.
Of capital through y some Of then the %sss
deals III ~. was bearish the mariet ana II NAP
srSled number Of successful bear raids on the In