The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-08-05
Fortunes Saved in Chicago by the
Prompt Action I'm Closing the
Stock Exchange.
THE MOORES DROP s5,OOO,OOO
THEIR SPEEDILY ACQUIRED
WEALTH QUICKLY DISsIPATED.
welI-Known Lumber Company nt CO.
Iumbus. O., Forced to an As
signment for S2O0,O0O.

CHICAGO. Aug 4-The failure of the
Moore brothers, announced this morning.
! showing the collapse of the Diamond
Match Company. with $11,0oo,00O capital,
and the New York Biscuit Company. with
50. 900 more, was the greatest sensation
in financial and speculative circles here
since the panic of 1898. The adjournment
of the Stock Exchange this morning un-
doubtedly saved the fortunes of number
of Chicago's wealthy men. 1t is now known
that different Chicago banks hold at least
| 81. 000. 600 collateral in the Diamond Match
Company. and 1t is estimated on good
authority that the Moores caught for
$5,00O0O0 at least. Their fortune is believed
to have been practically wiped out
The action of closing the exchange was
commended on all sides. 1t was admitted
| if 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 been run
| down to $50 and New York Biscuit per-
| haps to 30 or 40. AS IL is, with the CO.
operation of the banks and the very rich
men who are interested in the Diamond
| Match deal no great sacrifice in values is
anticipated. There is talk among the MEM
bers of The exchange. the bankers and the
heavy fnanciers of forming underwrit-
| ing syndicate TO take the match stock be-
1 loLging TO the poel at 10. The banks. 1T is
| claimed. will not be losers. While they
are carrying large amounts of Diamond
| Match stock. they have loaned on it only
up to $3.50 and $40 a share. On New York
Biscuit from $40 to $50 a share has been
|
trinsioally worth these amounts. and
powerful organization most likely will be
perfected to protect values about these
/ figures. The market will not be supported.
but 1T will be saved from bear raids This
/ syndicate would, of course, have to take up
some floating stock but 1t is argued that
it would not take long to impress invest
ment holders with the true value of the
| shares and the offerings would cease and
the stock eventually seek a higher plane
of quotations again.
THE COMPANY is SAFE.
The real business situation of the Dia-
| nond Match Companyzis not affected by
the failure of the Moores: the foreign ne
gotiations are still pending.
There was not a whisper in the street
yesterday that any trouble was impending
! The market for Diamond Match behaved
| in manner to excite little comment, in
fact thousands of shares Of the stock were
| handled within fluctuations of IA points
| 1t opened at 222 declined to 221, advanced
| to 2221. and closed at 222. j. II. Moore and
William Coffeen, the confidential man of
| the Moores, were absent from their office
| during the day. but while this was unusual,
| the real reason for their absence was not
/ suspected Calls for 100000 margins on
| Diamond Match, which could not be raised
precpitated the failure. That the margins
| would not be forthcoming was announced
| late in the afternoon and then came the
| call for a hasty meeting at the house of
| p. d. Armour last evening. At this meet
| ing nearly every bank in this city was
| represented, together with the governing
committee of the Stock Exchange. 1t was
supposed Mr.. Armour had an mixing OF
selling OF Diamond Match yesterday had
| been for his account, but this he denied and
! said that he had no suspicion of trouble
until about o'clock in the afternoon. The
| whole ground was carefully gone over and
| il was agreed that the only thing to arrest
| q manic was the closing of the Stock Ex-
| change. A resolution. TO that effect was
| then and there adopted by the members
| of the governing committee. The losers by
| the collapse of the Diamond Match and
| New York Biscuit deals will be the Moores
and the spectators who are long on the
market The loss of the Moore Brothers,
00O.00O They sacrificed ali they made in
the deal while the stocks were being ad-
,nf na m IN hg tRe market is
Moores were obliged to take 40 and 80 per
cent of the entirs eapsal TeY T5ock bad or the ne
Doubt of their ability to carry the deal
1 through. but the pub ic unloaded on them
to an extent the Moores never dreamed of
MANY of the outstanding trades in
Match and Biscuit, 1t is expected. can
| be closed up by the brokers outside of the
| exchange and before trading is resumed
| on the floor There were many inquiries
| for curb quotations on Match and Biscuit,
but nobody manifested desire TO trade
until matters have been reduced to some
| definite plan. James Hobart Moore was
| closeted during the forenoon with his at
| torney Mr.. Coffeen received all callers
during the early morning. but he had 1t
| officers of the bank holding Diamond
Match loans were in no wise disturbed.
| They felt confident that everything would
come out all right and that nobody outside
| of the Moores would be seriously hurt.
MIR. MOORE INTERVIEWED.
where do you find the greatest trouble.
in the Diamond Match or the New York
Biscuit?'' Mr.. Moore was asked.
..Oh IL worked both ways, due of course.
to the stringency of money. But you can
say that do not think there will be any
panic of stock. The Stock Exchange be-
ing closed, there will be time for conserva-
tive action to preserve values and that will
| eventually come out all right. We are a
long way from being financially dead and
will soon be on top again" said j. III.
Moore in his Office this noon after having
participated in a conference of some dura-
tion with his attorneys and financial
friends-- This affair was hard shock. but
IL is only temporary. There will be no
statement of the situation issued by u.s.
can say that with the Stock Exchange
closed there will be an immediate resort
to resources of which we have knowledge
| and which are accessible to straigften mat
ters out The shock came from the general
stringency In the money market. but we
upon their normal basis
You have arranged then for money
from the banks?" Mr.. Moore was asked
I'VE think we are perfectly safe in say
ing that we will tide over every trouble
1t is but a temporary one and we are a
| long way from being financially dead"
EDWIN G0ULD,s OPINION.