Delaware gazette and state journal., 1896-08-06
COLLAPSE OF A Big DEAL
Speculation IN Dia amona Match
Stock Failure.
ABANDONED BY THE MOORES
Closing of the Exchange in
Chicago.
This Action Decided Upon After the An
nounc"ment That tho Margin Calls Could
be Met No Lopger-Tbc Bislory Of the
Gigantic Speculative Affair.

Chicago. ILL.,, Aug. 4.--The specula-
tive. deal in Diamond Match and New
York Biscuit stocks has come TO an
end. The Moore Brothers have failed.
The greatest speculation ever known in
Chicago bas eliminated in the failure
OF the people who were behind the deal.
The Chicago Stock Exchange ad-
journed at 10 o'clock this morning for
an Indefinite period. This action was
decided upon at meeting held last
night, at which were present the mem
bers of the Stock Exchanges governing
board and number Of prominent cant
talists This meeting was assembled
informally, after the, announcement,
which was made late in the afternoon
by James II. Moore, that margin calls
no longer could be met. The announce
meDt was made to few of the mon
most heavily Interested and it was
thought best to call a meeting TO dis.
cuss the situation. Those who assem-
'bled discussed the best means for re-
storing confidence after the shock
which would be given to speculatiye
circles by the announcement of the
failure. 1t was the general opinion
that 1t would be the wisest possible
move TO close the Stock Exchange for
period. All those at the meeting said
that. II the exchange should open as
usual to- morrow morning, the bears
would make. slaughterlng of values
that would cost considerable and in
large measure cause unnecessary loss.
So far as the banks are concerned
they are Indifferent personally as to
whether the exchange should he closed
or not The stocks held by them are
margnied to point which leaves them
secure in any event,
The speculative deal, of which the fail.
ure is the elimination, is by all odds the
most important in the history of Chi
cago Stock Exchange affairs. 1t. began
early this year. The stock of the Dia-
mond Match Co. had been selling all
along at 100 for quite time and there
had been special activity in the market.
A strong group Of speculators, beaded
hy James H. Moore and William Moore,
began 6uying the stock. 1t moved b
with scarcely halt. In time came
the announcement that the Diamond
Match Co. had closed contract with
the French government, under which
the patents and machines controlled by
the match company were to be, sold
to that government for royalty of
Sl00, 600 year. The shrswdest men in
Chicago believed in the property.
Some of the richest of Chicago's specu.
lators operated in the market heavily.
The Chicago Exchange had mover
before known such activity. The head
and front OF the speculative movement
were the Moore Brothers, and they
were ably seconded by the most promi-
nent local and Eastern specuIators and
kept in absolute control of the situa-
tion. The stock cold up as high as
PAS, then fell The Moores went through
the break without the slightest difficulty
and it WAS generally believed that they
were glad to see the decline. so that
more stock might be ACCUMULATED.
From 200 the advance began again,
but it had hardly the snap that char
acterized the first rise. When the de.
cline in stock markets came the stock
was selling at about 224. The Moores
bought the stock with confidence that
inspired confidence in others. When
the July account came to be closed the
carrying charges for turning stocks
into the August account were very
large, SO large that faith was shaken In
the existence of an extensive short in
terest. A great part of the capital with
which The deal was carried on was in
New York and New Englanl. Yester-
day the stock was held with hardly
waver at 223 but there was an out.
pouring OF long stock which led the
keen observers of the market to fear
that the load might become too heavy,
and the events later in the afternoon
proved that those fears were correct