New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-05

EMBARRASSED COMBINATION HENRY
ALLEN CO. b. L. sMYTH & co. AND
OTHERS FNL-ALL INDUsTRrALs FALL
Hopes that the liquidation in the stock market
would be accomplished without acute trouble
were shattered yesterday when the announce
nents of three failures were made at the Stock
Exchange The root Of the recent dcmoraliza-
tion in the industrial shares was exposed when
It was learned that at least two OF the suspensions
were tracelbc 10 the refusal Of prominent opera
tors in National Cordace stock to protect their
speculative accounts, which showed a heavy ad-
verse balance. Light was thrown on the recent
enormous liquidation in that stock when IL became
known late last evening that the managers OF
the National Cordagc Company had decided to
place the corporation in the hands Of receivers.
II is not yet clear that this action may involve
individual assignments, but such result Ia con-
-iderrd by no means to be improbable
Rumors were freely circulated that James NJ.
Waterbury, the president Of the National Cordage
Company had become involved in financial diff
culties in consequence Of his interest in the
property. II was reported that he was contemplat-
ing an individual assignment, and some OF the
stories implied that other directors in the com
insolvency II was said that one per-
sonal notc of Mr. Waterbury's for about $50, 900
Lad gone 70 protest but this assertion could not
bc positively confirmed II was not until late last
night that Charles L. Attcrbury, the counsel Of
the Cordagc Company, acknowledged that the
directors of the company had decided at n meeting
in the afternoon 70 apply 70 tho Ncw-Jersny courts
for n recoivership for the corporation. Mr. After
bury. when asked whether President Waterbury
contemplated individual assignment, would reply
.imply that hc knew of no steps taken in that
direction by that officer. II j. generally believe
in Wall Street that Mr. Waterburys losses in Cord
age stock have been severe, and il would eXcl"
no surprsc if a formal announcement Were maj"
that his fortune had been impaired TO an extent
that rendered bankruptcy proceedings a1Visapi"
Representatives of the National Cordage Com
pany called Mt the home Of Chancellor McGill IN
Jersey City last night ard asked, through their
counsel Mcssrs. Collins and Lindabury, Of New
Jersey. and Cadwalladcr. OF Ncw-iork. for the
appointment OF receivers. The company. by their
statements. was in financial difficulties and vas
unable N mcst the demands about to he mad"
upon H.
Chancellor McGill granted tho application and
appointed &. Weaver Lopcr. treasurer Of the com
yany. and r. F. c. Young, president of the First
National Bank Of Jersey City. They were re-
quired TO furnish 5000. 900 bonds. Mr.. foun.
is a warm friend OF the New-Jersey Chancellor,
and his services on that account are deemed
esp ccially valuable to the company in it's distress
MIR. ATrERBuRY's STATEMENT
Charles l. Attcrbury, OF the firm OF Belts
Attcrbnry. TIy le & Betts, is counsel for the
National Cordage Company. When seen at his
home. No. East Thrty-,hrd-st, late last night,
hc said:
The directors Of the National Cordagc Com
pany at a meeting this afternoon decided to ask
for the appointment Of receivers for the COMPANY
The papers were prepared and application was to
be made this evening TO Chancellor McGul, OF
Ncw-.Icrscy. II was expected that the receivers
would he appointed this evening. and ] presume
that the Chancellor has by tiiis time made tho
appontmcnts Who they are | do not know, nor
do ! know many details leading 10 the applica-
ton The step has been taken IN order to preserve
the property, and undoubtedly Il reorganization
Will be effected.
Was there anv trouble as to the accounts of
the company" ?" was asked.
Not a particle. They We're a. straight as
string The company simply couldn't get money
to keep up the business.
Have they had been selling large amounts of
the cOmpany's paper? :?
mo. they couldn't sell it
But it il true that large amounts Of the paper
Of the individual companies, indorscd by the Ma
tional Company. have been offered in the market
reccntly?"
YES"
"Ias Mr. Waterbury made an asssnmcnt?'
lie has not
Has he made preparation TO assign, or does he
intend to. 50 far as you know
"Mr Waterbury has made no assignment That
rcrort is not true" was the answer.
The most important failure at the Stock En-
change was that of the large commission house
of Henry Allen & Co. The firm did an extensive
business in stocks and grain, and well known
throuchout the country. Its course had been
a most conservative one through the winter and
sprnu its customers being persuaded to opcrat"
upon the bear side of the market or. at least, to
confinr their ventures on the long sid" to luick
turns Although the house was known to ID"
executing buying orders on large scale IN Nd
tiona Corlage for some time its successful record
en- the bear side Of the general list was uni
vcrsally considered 10 be safeguard to It's bnll
operations in that industrial stock.
1T IxpIC,rED OTHER TROUBLE.
Tho secret Of its downfall was revealed when
the dcnuucncy of two Of its heavy customers
in National Cordagc became known. and then fh'
inevit,blo conclusion WAS reached by the Street
that a more important embarrassment must oc
in the background The other two failures were
those Ct + l.. Smvth Il Co and Schuyler walden,
which do not reach the magnitude" OF the snsp"n-
sion Of Henry Allen & Co. MIR Walden ascrIoed
lis failure to the unexpected inability oI GUS
toners 10 protect their margins on Nafloha'
Cordopc. and the same reason given ny the
friends of Smyth & Co. for their insolvency
The two firms and Mr.. Walden were carrier DOWN
hy th, .sol1ape in National Coriag" ana thnt
collapsc il now traccable to the inablhy OF INC
leading directors and officers Of the company longer
10 sustain fhe market value of their stock
The feeling in Wall Street at tn" start yes'rr-
dav was more hopeful one than at tn" close oil
the previous day The short interest was so en-
tcnsivc that free coYcring movcment was cA-