New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-05
perhaps is just as WE'LL asa few days suspension
cannot do much hurt" -"
INTEREST OF THE BANKS.

INTEREST OF THE BANKS =
The Interest of the banks in the unfortunate
affair Is primarily confined to keeping the mar
ket value of Diamond Match and New-fork
Biscuit stocks above the figure which represents
the money loaned per share on the security OF
these stocks. In the case OF Diamond Match the
loans were on a basis of 10 TO ldV ana 'he
opinion Of the bankers IS that the intrinsic worm
Of Match stock is above these ngures. ms
Commercial Loan and Trust anc the ILLINOIS
Trust and Savings banks are believed TO be the
largest holders of the two stocks as security Tor
loans. nut they are not alarmed at the outlook
II is believed the Moore failure will aggregate
between 81 900 600 and SS000.0O0 Such is the
sum mentioned BIZ bank president who has
been especially close TO the spectators during
their daring and dazzling reign. =,
According TO this authority. James ii. Moore
and William III. Moore. his brother. owned all
told 81 800 600 worth of Diamond Match stock
A portion of this great amount was owned IN zee
before the speculative in the stock began.
Much, however. bought at prices ranging
between $50 and 2i0. The Moore holdings were
majority of the total stock Issued. 1t so nap
pened however. that the balance OF the STOCK
was held by a great many stockholders soon
after the stock began It's wonderful aerial night
these minority stockholders began unloadlng.
and In each the persons who bought inns
purchasable stock were James Moore and his
brother. 80. .,A ,,,-
~,
thirty. some sixty days. Margins Of per cent
were given. and in this way at least S2.OOO.OOO
worth OF the stock was bought. Two banks In
Connecticut-one In Bridgeport and the other In
Hartford-werc the holders Of the stock as trus-
tees AS the stock huctuated in value or the
time limit for purchase account expired more
margins had TO be deposited. In this way not
less than GO per cent on a par value of the stock
paid All this the Moores paid without
finching. hut in the long run the stock became,
Notwithstanding its extraordinary intrinsic
q friChtfllllv Al
the two brothers substantially the only
props to the big enterprise. The result was In
evitable and the crash followed.
SMALL STOCKHOLDERS BENEFITED
And thus it happens that to-day. while the
Moores the financial brains Of this colossal en-
terprse losers to the tune of $l,0O0,OO0 or
$S,OOOOO0 the numerous minority stockholders
are the winners For they have been the bene
fciaries OF the MARCIA paid and their stock is
still theirs although held in trust.
Members of the Chicago Stock Exchange ad-
vance the opinion that the shares Of the Dia-
mond Match and New-York Biscuit Company
will not be materially affected by the failure OF
Moore Brothers. az both concerns are known
TO be IN hrst-cass condition. ". V. Baker. Of A.
o. Slaughter e. Co. states that Diamond Match
Is earning between Is and 20 per cent and pay
ing ~, while Ncw-York Biscuit pays per cent
and earns considerably more.
J. J. Mitchell, president Of the Illinois Trust
and Savings Bank, says that there is little doubt
that pool will be formed TO take care of the
Diamond Match stock. Mr.. Mitchell said this
morning:
THE CRASH ANTICIPATED.
There is no inclination on the part Of bank
ers here to press matters. as the stocks are good
holdings in themselves The committee, APP
pointed by the Governing Committee Of the
Stock Exchange. will undoubtedly be able to
make terms. but until everything fs arranged
the Stock Exchange will not be opened. I do
not consider the failure Of you so call it, of
a c
simply case OF inability on the part Of the
Moore brothers to put up any further margins
and that is all there is to II. The Chicago Stock
Exchange in itself amounts TO very little out
side of a local speculative value Its influence
is slight.
"The banks will not lose for they had antici-
pated just such crash as happened yesterday.
That the speculation in the stock could not lest.
everybody knew panic in the stock was
bound to result. For some time Chicago banks
decided not to loan any more money on Diamond
Match stock than they already had loaned-lCo
per cent This collapse will clear the atmos-
phere and l DO not anticipate any serious re-
suits outside the parties directly concerned"
1t is believed that an effort will be made to
syndicate the Diamond Match stock now out at
1IO. If such action is taken. the danger OF pos
sible failures resulting from the collapse OF the
MoOreS Will be much leSSened. Chicago banks
and bankers who hold approximately S4OO00O0
worth of Diamond Match stock as collateral TOR
money loaned. Will not press the borrowers FOR
a settlement. To do so might precipitate a
panic This the banks are bound TO avert at all
hazards Just now II is said the banks have
decided 10 accept the stock Of Diamond Match
owned by Moore Brothers at cash value OF
10 Such was the basis of settlement agreed
upon at the meeting Of bankers held last even
ing.
Probably the heaviest losers in the collapse
next to Moore Brothers themselves, are the
brokers who had been doing business for them
the Exchange. Very few. indeed. are the
brokers who did not do business In that line.
The Moores unquestionably purchased an enor-
line cf both New-York Biscuit and Dia-
mond Match stock. The high price at which
Diamond Match selling makes the sum IN
volved in handling II extremely large. The
capital stock of the Diamond Match Company Is
S11 900. and of the New-York Biscuit Com
pany S9,0O0.00O. and 1t is estimated that the
Moores have purchased half the stock of the
Diamond Match Company, and their purchases
Of New-York Biscuit stock perhaps bears as
large proportion TO the total.
William II. Moore. the senior member OF the
firm is at present in the East.
Diamond Match and New-York Biscuit are
still good properties" said ] H. Moore at noon
to-day to reporter, Just after subcommittee
OF the Stock Exchange had called on him. Il
am not prepared to make statement. either
OF liabilities or assets. because don't Know
what they are myself. 1 Will say this; Moore
Brothers are not broke; they are simply tenn
porarily embarrassed. and will pull through all
right The bankers and the Stock Exchange
will protect us and will come out all right
'Diamond Match is good property and worth
more than we claim for It, Its earning capacity
has not nearly been reached. We shall make q
statement Just soon as 1t can be prepared.
WORK OF TWO PROMOTERS
William H. Moore Is the first vice-president OF
the Diamond Match Company and the president
of the New-York Biscuit Company. James H.
Moore is second vice-president OF both COM
panies The Moore brothers are OF middle age
and lawyers by profession. Their business life
has been passed in Chicago. Their first I'M
portaut venture in the corporation field was the
organization Of the Frazer Axle Grease COM
pany, which great success ana wnich
hor trinO Of ri
they organized the great Diamond Match Com
pany, which has also been remarkably success
full The New-York Biscuit Company and the
American Strawboar Company were organized
by theul also but these have not proved profit
able 10 the stockholders as yet. The Moores lost
their hold on the last-named company two years
49,. IL fod ixacl