The herald., 1896-08-04
MATCH AND CRACKER DEAL
Breaks the Brokers Who En-.
gineer 1t
THE TREMENDOUS FAILURE
indefinitely Shuts Up the Chicago Stock
Exchange
Some of the Richest and Shrewdest Of Chi-
cago's Spectators Were Badly Caught
In the Pinch
Associated Press Special Wire.

| tive deal in Diamond Match and New
York Biscuit stock has come to an end
| The Moore Brothers have failed The
greatest speculation ever known in
Chicago has eliminated in the failure
! of the people who are behind the deal.
The Chicago stock exchange will ad-
| journ at 10 o'clock tomorrow morning
for an indefinite period. This action
| was decided upon at a meeting held this
| evening, at which were present the
members of the stock exchange govern
| ing committee and a number of promi-
nent capitalists. This meeting was as
| sembled informally after the announce
ment, which was made late in the after
noon by James Fl. Moore, that margin
calls no longer could be met The an
| nouncement was made to few of the
| men most heavily interested. Those
| who assembled discussed the best means
| of resoring confidence otter the check
which would be given to speculative cir
| Giles by the announcement of the failure
1t was the opinion that it would be the
wisest possible move to 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 stock, and that the
closing of the exchange would interfere
only in slight degree with the general
financial affairs.
1t is thought the adjournment will last
but few days. and that matters can
within that time be Strengthened out.
So far as the banks are concerned they
are Indifferent as to whether the eX-
change should be closed or not The
stocks held by them are margined to
a point which leaves them secure in any
event.
The speculative deal of which the
failure is the elimination is by all odds
the most important in the history of the
Chicago stock exchange. 1t began early
this year. The stock of the Diamond
Match company had been selling along
at $50 for quite a time. Just prior to the
Venezuela incident the tip had got out
in inside circles that there were to be
some important European developments
in Connection with Diamond Match af-
fairs, and the buying of the stock COM
menced by strong people. The NeneZue-
Ian panic interfered with the speculation
and the stock dropped during the general
decline at that time to 115. From there
the rise started which is the most re-
markable in the history of the ex-
change. A strong group of spectators,
headed by James H. Moore and William
H. Moore, began buying the stock. 1t
moved up with scarcely a halt. The
rise went on for considerable time be-
| fore the general public had any intima-
| ton of what was really behind the ad-
vance. In the meantime the announce
| ment that the Diamond Match company
had closed a contract with the French
government, under which the patents
and the machinery controlled by the
match company were to be sold to the
French government for royalty of
c 1907 900 year was made. 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 e May, the largest match pro-
ducers in Great Britain, and would give
to the English field the advantage of the
labor American machinery.
A factory was equipped at Liverpool
which was owned by the Diamond
Match company and which served as an
object lesson to European manufacture
ers.
Negotiations were also opened in Aus
tria for the formation of a company
which should combine all the manufac-
turing interests there Other compa-
n fol no T.
Italy.
The shreWdest men in Chicago believ-
ed in the property. Some of the richest
OF Chicago's spectators operated yn the
market heavily. but the head and front
| Of the speculative movement was the
Moore brothers. The stock sold up as
| high as PAS
When the decline in stock markets
| generally came, following the Demo-
| Gratis convention, the stock was selling
at about pa, and was held steadily with
| out so much as fractional decline. The
| Moores bought the stock with conf
| dence that inspired confidence in others.
| The people who had been the best in
| formed about the company's prospects
| seemed to feel absolutely certain of the
value of the security, and prices were
| held through all the sharp fluctuations
! in other stocks.
1t was believed that heavy short in
| terest had been created by bears who
| did not think quotations could be held
! in the face of the decline in the general
market.
Apparently the hopes Of the bulls
rested on the size of the short interest.
| When the July account cameto be closed
the charges for turning stocks into the
August account We're very large so
much so that faith was shaken in the
extensive short interest. The great part
| of the capital with which the deal had
| been carried on had resulted in New
York and New England.
| The local banking institutions are
| only moderately interested in the affair.
| Difficulty was experienced owing 10 the
| general loss of confidence in renewing
| some of these eastern loans. Settlement
| day was successfully passed, however.
| and every one believed that in spite of
the heavy carrying charges, the bulls
| were still in control of the situation.
| The stock came out, however in enor-
nous quantities. The Moores were al