Evening journal., 1896-08-05
THE CHICAGO COLLAPSE.
Banks WIN HeIp the Hackers OF the
Speculative Deal

Banks WIN Help the Hackers of the
Speculative Deal.
CHICAGO, Aug .. Tho Post, rnforring
to tho failure OF Moore Bros, promoters
Of Diamond Match and New York Biscuit
stocks, says: gtl
''The action of closing the exchange was
commended on all sides. IL was admitted
that II an attempt had been made to carry
on trading under present circumstances
panic would surely have followed, In which
all stocks would have suffered materially,
and Diamond Match might have boen run
down 20 100 and Now York Biscuit TO
perhaps 80 or 40 AS It is, with the CO.
operation of the banks and the worry rich
mon who are interested in the Diamond
Match deal, no great sacrifices in values
are anticipated. There Is talk among mem
bers of the exchange, the hankers and the
heavy dnanoiers of forming an underwrit-
ing syndicate to take the Match stock be.
longing to the pool at l70. The banks
will not be losers. While thay are carry
ing largo amounts of Diamond Match
stock, they have loaned on Il only up to
sl60 and $l70 share. On New York Bis
cult from $50 to $50 share has been loan
cd. Tho stocks, It is argued, arc intrin-
sically worth these amounts, and power
full organization, most likely, will be per-
fectcd TO protect sales about these figures.
The market viii not be supported, but It
will be saved from bear raids. This syn
dioate would, Of course, have TO take up
some floating stock, butit Is argued that it
would,not take long 60 impress Investment
holders with the true salua Of the shares,
and that offerings would oease and the
stock eventually seek q higher plano OF
quotations again.
1.-The renl business situation Of the Dia-
mond Match company is not affected by
the failure OF the Moores. The foreign me-
gotiatlons are still pending.
The following statement OF tho New
York Biscuit company Is given by an
offioial
Since this company has been organized
with Judge Moore at its head, it has al
ways earned from 6 to 10 per cent annual
| ly on tho capital invested. For the last
five quarters up TO July / last we have
failed to declare a dividend. Our failure
to declare dividends at the expiration OF
| those quarters was because the money was
used In the constructionsof the new build
ings, which represent today botween 80,
| 600, 600 and $4,000, 900. One of the build.
| ings, in Now York city. which cost near
|. ly 81 COO 600, is just about finished. The
other new building has been erected in
Chicago. Both these buildings are sound
assets. When the last quarter came
around, we declared dividend at the rat'
| Of per cont We do not expect TO pasl
/ another dividend unless, Of course, IL Il
done to buy assets. -
On good authority It is stated that New
York banks hold practically no paper o
Moore Bros or of the Diamond Match anS
Biscuit companies. Moore Bros. paper Is
however, largely held IN Providence, Bos
ton and Now England generally. The llrn
was estimated to bo worth about 81, 600,
600 In 1895. Considerable stock, however
it Is said is held in loans by difIeren
banks and institutions In the east. Loan
on Diamond Match for the last few month
have been made outside Of Chlcago at leas
at par. Some of tho Chicago loans are q
par. and an Impression prevails that th
stock may go somewhere near that figure
perhaps little lower, as the bank loan
have to be liquidated sooner OF later.