The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-08-06
DID THE FAILURE OF THE
MOORE BROTHERS OF Ola
MOND MATCH FAME
CHICAGO STOCK EXCHANGE CLOSED
observation-disclosures of Moore Brothers
Will Foot Up Between 100000
and 81, 000.000-They Are Hope
full of Pulling Through.


shock of the collapse of the diamond
match deal is passed there is n general
feeling of commentator of the action of
the governing committee i'll closing the
exchange. The fact that large quaint
ties of the stock involved in the deal will
be held by those who loaned upon it will
probably prevent the full magnitude of
the transaction becoming known. 1t is
admitted that if the exchange had not
been closed and an attempt had been
made to carry on trading under present
circumstances panic would surely have
followed in which many would have suf-
fered materially and Diamond match
might have been run down to 100 and
New York biscuit perhaps to 30 or 10.
AS it is, with the cooperation of the
banks and the rich men who are inter-
ested in the Diamond match deal, no
great sacrifice in values occurred. There
is talk among the members. the bankers
and the heavy financiers of forming an
underwriting syndicate to take the match
stock belonging to the pool at 10. The
banks will not be losers. While they
match stock they have loaned on it only
up to $160 and $40 share. On New
York biscuit from S75 to $50 Il share
has been loaned The stocks. as it is
figured. are intrnsically worth these
amounts, and Il powerful organization
most likely will be perfected to protect
values about these figures, so that the
market will not be supported, but it will
be saved from bear raids. This syndi-
cate would, of course, have to take up
some floating stock, but it 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 higher plane
of quotations again.
The real business situation of the Dia-
mond Match company is not affected by
eign negotiations are still pending.
Chicago. Aug 4.-Nothing in years has
caused such IL furry in commercial cir
cles as the collapse of Moore Brothers
in their efforts to maintain the control of
the Diamond Match and New York
Biscuit stocks. 1t has been the talk of
every man connected with the Stock EX-
change and Board of Trade. Another
striking feature of the failure and one
which. in measure, showed its extent
and breadth. is the fact that the Stock
Exchange for the first time i'll its his
tory. adjourned Indefinitely at once. Its
doors were opened without dollars
worth of business. The following notice
was posted OH the uOOT VI llle INAtHuHSt'
THE Chicago Stock Exchange has adj
| iourned. subject to the action of the gov
Crning committee.
u. s. WILKINS, Secretary
Outside the doors and through the cor
| ridors of the building were excited groups
| of brokers and traders in stocks discuss
| ing the situation. Every one connected
| with the Exchange was endeavoring to
convince everybody else that there was
no cause for alarm.
1t was announced that the officials of
the Exchange were endeavoring to form
| Il pool to buy up the stock of the Moore
Brothers to hold it until the furry was
over
At meeting of the governing commit
tee Il resolution was adopted, calling for
| the appointment of four, the chairman
| of which shall be the president of the
Stock Exchange, and the other three to
he appointed by him, to confer with the
bankers of Chicago and the Moore
Brothers to arrange upon basis OF set
Element. Those best posted in the mat
ter declare that there is no fear of n
general panic. The governing committee
today adopted the following:
"Rosolved That in case of all the
stocks bought and sold regular the
| trades shall be carried out and in cases
where stocks have not been regular and
sold in the account the stock shall not
be delivered until the opening of the
clearing house,
Chicago banks. who hold approximate
ly S4,000,0OO worth of Diamond Match
stock as collateral for money loaned, will
not press the borrowers for a settlement.
To do so would be unwise and might pre-
cipitate panic. The street banks are
bound to avoid this at all hazards just
now. Another thing the banks have de-
cided to do, and that is to accept the stock
of Diamond Match owned by the Moore
Brothers at cash value of 10.
Such was the basis of settlement
agreed upon ut the meeting of the bank
ers held late last evening.
Possibly the heaviest losers in the col
lapse of Moore Brothers, next to the
brothers themselves, are street 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. Those most affected are
Breeze & Cummings, Baldwin II Fannin,
A prominent stock broker of this city,
Charles Counselman, says of the Dia-
mond Match company:
The deal is virtually closed. The
Diamond Match property is all right.
The company has had nothing to do with
the speculation. 1t earned $1,S00,000
last year on 81, 100000 capital and had
SD.UtD,DOD OF QUICK dSSclS. i lie SpecUld-
ton has been made by the Moores and
their friends. Mr.. Moore says he is not
busted: that he has resources and plenty
of courage; but Mr.. Moore is away up
in the air. He could not sell his stock
and so he has kept on buying it at very
high prices. That is at an end The peo-
pie who have loaned on the security will
handle it from this time forward. They
will market it to investors. There will
be no more buying at fancy prices, no
further attempt to support prices, but
the stock will be held. Moore, l think,
will have a generous equity. The whole
block of security will be underwritten.
| think ITO for Diamond Match will not,
however, be the figure. That is too high.
Loans were n good deal under that fig
ure | think that $50 will protect the
people who advance it. Many of the
outstanding trades in match and biscuit
stock, it 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 no.
body evidenced desire to trade until
matters have been reduced to some def
mite plans.
James II. Moore was seen by a re-
porter.
Where do you find 'he greatest
trouble, in the Diamond March or in the
IL