The evening times., 1896-08-04
MOORE Bros, ElsED UP
Continued rrou, r,r.t Page,

aerial night these minority STOCKHOLDERS
began unloading, and ia each case the pef-
sons who bought this purchasable stock
were James Moore and his brother.
Most of these purchases were not cash pur-
chases, but Oh account, some OF them run
ming thirty, some sixty da vs.. Margins VI
per cent were given, and In this way, at
least $4,000, 900 worth OF the stock was
bought. Two banss 10 Connecticut. one
In Bridgeport and the other In Hartford
were tie holders Of the stock as trustees.
AS the stock fluctuated In value, or the time
limit for purchase account expired, more
margins had to be deposited.
In this way not less than so per cent on
par value of the stock was paid. A II this
the Moores paid without Iiinching, but
in the long run the stock became, not with
standing It's extraordinary intrinsic value,
frightfuily heavy load to carry. At last
the two brokers Were substantially the
only props to the big enterprise. The
result was inevitable and the crash fol-
lowed.
And thus 1t happens that today, while
the Moores. the financial geuii of this
colossal enterprise, are losers to the tune
OF seven or eight million dollars. the
numerous minority stockholders are the
winners, for they have beeu the benefi-
ciaries OF the margin paid and their stock
Is still theirs, although held In trust
The governing committee is appointing
and capitalists. with the object OF FORM
ing pool to take care of the Moore Broth-
ers' holdings OF Diamond Match and New
York Biscuit. Local bankers and members
OF the Stock Exchange say everything pos
sible will be done to prevent big slump in
stocks.
POOL WILL BE FORMED.
Mr. j. J. Mitchell, president of the
Illinois Trust and Savings Bank, says that
there is little doubt that a pool will be
formed to take care OF the Diamond Match
stock Mr.. Mitchell said this morning:
There Is no inslination on the part OF
bankers here to press matters, as the stocks
are good holding In themselves. The COM
mitsee appoitned by the governing commit
tee of the Stock Exchange will undoubt
ediy be able to make terms, but until every
thing Is arranged, the Stock Exchange will
not be open"
II do not consider the failure-if you SO
call it-of any great importance as affect
ing values. II is simply case Of inability
on the part of the Moore Brothers to put up
any further margins, and that is all there
is TO 1t. The Chicago Stock Exchange in
itself amounts to very little outside OF a
local speculative value"
At 1880 the governing committee of
the Chicago stock exchange went into
executive session. The exchange has ad-
journed subject TO the call of the commit
tee. II is believed that an effort will be
made to syndicate the Diamond Matcn
stock now out at 170. II such action Is
taken the danger OF possible failures re-
| sultiDg from the collapse OF the Moore
Brothers will he very much lessened.
BANKS NOT PRESSING.
Chicago banks and bankers who hold
| approximately S4,C000aO worth OF Dia-
mond Match stock, as collateral for money
loaned. will not press the borrowers for
| settlement. To do SO might precipitate
a panic. This the banks are bouni to avert
at all hazards just now.
Il Is said the banks have decided TO
accept the stock OF Diamond Match owned
by the Moore Brothers at u cash value OF
ITO. Such was the basis OF settlement
| agreed upon at the meeting of BANKERS
! held late last evening.
Probably the heaviest losers in the col
lapse next to the Moore Brothers them
selves are the brokers who had been doing
| business for them on the exchange. Very
few, indeed. are the brokers. too, who
| did not do business in that line.
| speaking of the collapse, j Ohm j. Mitch
| ell! president OF the Illinois Trust and
| Savings Bank, said:
the banks will not lose, for they had
| anticipated just such crash as hap
pened yesterday. That the speculation in
the stock could not last everybody knew.
I =
| For some time Chicago banks decided rot
I to loan any more money on Diamond Match
| stock than they already had lcancd-say
| l6o per cent This collapse will clear
! the atmosphere, and I do not anticipate
any serious results outside the parties di
| rectly concerned"
| The governing committee OF the Stock
| Exchange held short session. and after
discussing the collapse and the proper
| course to pursue as u precautionary measure
| OF general safety, decided to have u CON-
| mittee OF its members appointed. The Sc
lection of the committee was given to Nal
| COIN Jameson OF Jameson & Co.
| The function Of this body is to inter
| view Moore Bros. and the city bankers OF
| prominence for the purpose of ascertain
| ing the exact condition of the firm finan-
| cially and the consensus of opinion from
| the firm and the bankers as to the hest
| plan of action. The governing tody then
| adjourned until 8 O'Clock, when the Sub
| committee will report the result of its labors
| apd it's recommenda tions as to future
| action.
At the big stock brokers' offices there
was general feeling OF uneasiness, the big
| failure having stunned and surprised every
| body. No business was being done in local
securities, and the inquiries from the coun-
trywere eforinforina ton as to the test phase
| OF the situation.
1
| curb, but a negative answer was returned
| to all, and the apprehensive ones were as
| sured that there were no immediate pros
| poets OF any other firm being involved in
| the crash. Among the brokers there was
| only approval OF the course of the exchange
| officials in closing the institution tempo
| rarily.
MOORE WAS SMILING.
| Mr. Jameson appointed four members Of
| the exchange on the subcommittee and Mr..
| ]. H. Moore, of Moore Bros, was the first
person visited. After q short conference,
| the five gentlemen emerged from tue pri-
| vate office of Mr.. Moore. all looking well
pleased and satisfied. Mr.. Moore's face
| particularly was wreathed in smiles. But
| none would talk. Mr.. Moore, on being qGes-
| toned, said:
There will be nothing given out today,
but you can say in a general way thatthe
| stock will be taken care of and every
| thing will be running in few days as II
| nothing had' happened. The stock is as
good as gold and nobody is going to be
very badly hurt"
| Things looked q little sQually when the
| board Of trade opened this morning. for on
| the curb wheat had sold 1 cent lower be-
cause of the Moore failure and the closing
| of the exchange. Fortunately there were
| some strong and conservative men ut the
helm. and by their action financial troubles
! were, for time, at least, averted, and a sat
| isfaction pervaded the market.
| It was argued that the failure of q stock
4 brokerage concern could In no manner
4 affect the price OF wheat, particularly
4 when there was every causefo for an advance.
| This argument held good, and when the
| pits began to be crowded with buying
| orders, offerings were light indeed.
|
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