The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-08-04
DIAMOND MATCH BURNS OUT
Moore Brothers Fa., ana the Chicago Stoc
Exchange in Closed.

|
end. The Moore Brothers have failed
| The gigantic speculation has culmi
mated in the failure of the people who
| are behind the deal The Chicago stock
exchange will adjourn at 10 o'clock to-
morrow morning for an indefinite per
| iod. This action was decided upon a
a meeting held this evening, at which
were present the members of the stock
exchange governing committee and
number Of prominent capitalists. Thi:
meeting was assembled informally after
| the announcement, which was made
| late in the afternoon by James H
| Moore, that margin calls could no long
| er be met. The announcement was
made to a few of the men most heavily
/ interested. Those who assembled dis
| cussed the best means OF restoring con-
| fidence after the check which would be
given to speculative circles by the an
! nouncement Of the failure. 1t was the
| opinion that it would be the wisest pos
sible move 10 close the stock exchange
| for a period. The points were made
| that nearly the entire business at the
stock exchange for a number of weeks
has been in Diamond Match and New
York Biscuit and that the closing OF
| the exchange would interfere only in a
slight degree with the general financial
affairs. 1t is thought the adjournment
will last but a few days and that mat
tiers can within that time be straight
ened out.
So far as the banks are concerned
they are Indifferent peronally as to
whether the exchange should be closed
or not. The stocks held by them are
margined to point which leaves them
safe in any event. The failure is by
odds the most important in the history
OF the Chicago exchange. The stock
Of the Diamond Match company had
been selling along $50 for quite a time.
Just prior to the Venezuelan incident,
the tip had got out inside circles that
there were to be some important Euro
pean developments in connection with
Diamond Match affairs and the buying
of the stocks commenced by strong
people. The Venezuelan panic inter-
fered with the speculation and the
stock dropped during the general de-
cline at that time, to 115 per cent. From
there, the rise started which is the mos.
remarkable in the history of the ex-
change.
A small group of SPECTATORS, headed
by James H. Moore and VIM. H. Moore,
with scarcely a halt. The rise went on
for a considerable time before the gen.
eral public had any intimation of what
was really behind the advance. In time
came the announcement that the Dia-
mond Match company had closed a con-
tract with the French government under
which the patents and the machinery
controlled by hte match company were
TO be sold to the French government for
a royalty of 100000 year. Following
the announcement of the closing Of the
French contract, the stock advanced
with great rapidity. Negotiations were
opened for the formation of a new COM
pany in England which would unite
with Bryant and May, the largest match
producers in Great Britain, and would
give TO the English field the advantage
of the labor-saving American machin-
cry. y fectory was equipped in Liver
pool, which was owned by the Diamond
Match company and which SER ed as
an object lesson to European manufac-
turers
Negotiations were also opened in Aus
tTalia for the formation of a company
which should combine all the manufac-
turing interests there. Other conpan-
les were organized in Belgium and Italy.
The shrewdest men in Chicago be-
lieved in the property. Some of the rich
est of Chicago's spectators operated IN
the market heavily but the head and
front Of the speculative movement
was the Moore Brothers. The stock
sold I'D as high as PAS.
When the decline in the stock markets
generally came. following the Demo
cratic convention, the stock was selling
at about pa and was held steadily
without so much as a fractional decline
The Moores bought the stock with con-
fidence that inspired confidence in 9th
erS. The people who had been the best
informed about the company's prospects
seemed 10 feel Absolutely certain OF
the value of the security and prices
were held through all the sharp fiuctu-
atoms in other stocks.
II was believed that heavy short
interest had been created by the hold
ers. who did not think liquidations could
Oe had in the face of the general market
Apparently the hopes of the bulls rest
ed op the size of the short interest.
When the July account come TO be clos
ed, the carrying charges for turning
stocks into the August account were
very heavy. so much SO that faith was
shaken in the existence of any short
interest The capital with which the
deal had been carried on had been rails
ed in New York and New England
Local banking institutions are only
moderately interested in the affair. Diff
icUlty was experienced owing 10 the
general loss of confidence n renewing
some OF the eastern loans. Settlement
day was successfully passed. however.
and every one believed that in spite
-, ..a>,a
were still in control OF the situation.
The stock came out. however. n enor-
nous quantities. TIE SIoOres were
almost alone in supporting the mar
ket. but they stood under II with re-
.rarissEoie courage.
Today the stock was held with hardly
a wsver ar 80 but there vas an out
pouring or long stocH which led the
keen Observers OF the market 20 fear
that the load might become TOO heavy
and the events later n the afternoon. |
proved that those % the others we're
correct.
The deal IN Diamond Match was only |
part % mis- great speculative operation. |
The Moore Brothers had organized me |
New York Biscuit 5company several |
years ago after THE first great SUCCESS Of !
the Diamond Match company. The
psGlS q lSs3 had hit TIE Biscuit ccm- |
pany severely. ss x did al the other |
Industries. and TIRE stock vas far below
par. Tire success which was not within |
speculative manipulation in Diamond |
Match. led 20 a desire 10 Sc what could /
be done With New York Biscuit. and
that stock was taken several months |
ago and advanced from . % les From |
that X dropped back 10 :. per eeag and |
<o- weeks was held close about that 1
figure. Enormous quantities .. this |