New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-14
A FALSE REPORT or FAILURE
II. B. HOLLINS & co. ENTIRELY SOLVENT.


MoNGERs TO DE PROSECUTED.
Wall Street was thrown into a state of tenn
porary excitement yesterday by false report of
the failure Of H. B IIollins & Co., the big Stock
Exchange house at Wall and Broad SITS. and we'll
known for its confidential relations with the Van
derbilt family. The report through misapprehen-
sion OF an announcement made to the Stock En-
change by the firm, was sent over the tckers Of
one OF the Wall Street news agencies, and al
though 1t was almost Immediately contradicted it
gave cold chill to those persons who read the
false statement. Mr. IIolins declared yesterday
that he intended to make an example in the courts
Of the men responsible for the circulation of the
report.
1t was shortly before noon, the hour of closing
the Exchange on the half-holiday, when the chair
man raped for order and read the following letter
"New-York. May l3, 1898.
Frank X. Sturgis, Esq, President New-York Stock
Exchange.
Dear Sir: In view of the malicious rumors that
have been circulated against our house, beg to
state that they are absolutely false, and that We
are and always have been prepared to meet any
and all Claims against us whenever presented.
"Yours truly, II. B. IIOLLINS."
AT the time the letter was read the stock mar
brokers were on the floor of the Stock Exchange
Only n few of them understood the purport of
the communication but as most announcements
from the rostrum of late have been of suspensions
many persons concluded on the instant when the
name Of Iiol'ins" was heard that another failure
had taken place This conclusion was the more
readily reached because there have been malicious
bear rumors circulating against this firm for ten
days. Some of the boys who are in charge of the
telephones that connect with the Offices of brokers
hastily telephOncd TO their employers that IOlins
d Co. had failed. similar announcement
sent TO the office Of the Foreign and Domestic
News Agency, in the Western Union branch build
ing in Br0ad-st next TO the Stock Exchange, and
it sent cut over the agency's news tickers.
The contradiction Of the report followed instantly
over the tape, but the rumOr had increased the
commotion in the Exchange and prices fell further
before the fasity of the report was learned
Orders doubtless to sell stocks We're sent from
brokers Offices to the Exchange under the misap-
prehcnsion existing and were executed before
they could be recalled.
The members Of the firm Of IT. B. Hollins & Co
were surprised about noon at inquiries made per-
sonally consequence Of the mistaken report.
As the facts were learned astOnishment gave way
to Indignation, and it was decided to hold the
Foreign and Domestic News Agency responsible
for its act. j. A. Hartman who is connected
with the house, instantly started to find District
Attorney Nicol. TO lay the case before him. Mr..
Ncoll could not be reached. and il was also
learned that Police Justice Martin. whose district
embraces the Stock Exchange, out of town
The matter was placed in the hands of Lowrey,
Stone IL Auerbach lawyers, in the Drcxel Build
ing Mr.. Hollins said yesterday afternoon that
nothing would be done until to-day, when appl-
cation would be made to Police Justice Martin
for an order of arrest on charges of criminal
libel II it was found that such orders could not
be issued on Sunday, the application would De
made early Monday morning.
Il am determined to push this case to the end,
said Mr.. IIolliny We have the men who are
guilty Of circulating this report and we intend TO
punish them II is time that the outrageous
rulnors about us were cfrectually stopped. nave
seen several prominent bankers and heads oil nm
ancial institutions who have urged me sIrohsN
10 show no leniency. You may be sure that we
VIII make an example of these people, AID think
il will be salutary lesson for the bear r'uhor-
mongcrs" ,. D.. pr..i-
dent ,tnrgis. of the Stock Exchange, Nr. Hoi-
lins said T" / did not take this step OF my own
vOlition AlthNgh thee malicious ruinots h'te W.
i"nore them. But H. IL. lIollister of liolllster
.x Babcock came TO mc to-day and urged me 10
send the letter | refused IT first to 90 80, put
hc finally took the ground that ! should take 'i'Is
stcn for the benefit OF tne Stock ENeiange ii'cli
50 As to stop the rumors cffectualiy. V'Hls
prominent men joined in the cn'rr3tles, ana & ao
lost wrote and sent the letter. Ny course "iI
taken entirely at the request of Mr.. ioliister anu
others There has been no foundatl' III whatever 10.
the bear stories circulated affecting our house ai
considering the pcrsistency of these att"cNs any
ne must be pretty strong 10 withstand thelr enSc..
We have 10 speculative ventures ana ar" 'o-uaS
in stranger shape than we have ever been. D.
Widc sympathy was expressed with tIe hrih
in its Indignation at the malicious assaults naue
uron il, credit Many brokers are sratined
th,t Mr. IJoins took the step officially contra
dieting the outrageous rumOrs that nave p+l
whisrcrcd around. 1t is believed that tie lct'pr
will exert beneficial effect upon speculative 'en
Nor So long as the reports were kept go.hs M
vague dread that s0ne hing was hanging over we
market" could not he entirely repressed, ana 'he
influence could not he shaken on, even ny In.I
who had no reason to know that there was no truC
in thc hear stories Ii was sald yesterday tiao
Wr Uollin,s emphatic statement would go lar 70
oll,v unnnict and to clear the atmosphere III
removes enc ground for the innnendo ol peir a
sncculators. and if an example IS maze oi the
crculutors of the fasle rurnors II IL hoped ina,
oheci, ,viil bc piven TO the work Of the wretches
who have been bandyng about the names Oh soihe
of thc strongest houses IN wall Street