The Portland daily press., 1896-08-05
MOORE BROS. FAILURE.
Collapse of Most Gigantic Speculation
Ever Known in Chicago.

Spacalatiye Deal in New York Biscuit and
Diamond Match Stocks-Ths Cause
Chicago Stock Exchange Closed.
Chicago Aug4-The speculative deal.
in Diamond Match and New York Bis
cult stocks has come to an end through
the failure of the Moore Bros.
The greatest speculation ever known in
Chicago has eliminated in the failure
OF the people who were behind the deal.
The Chicago stock exchange stood
adjourned at 10 O'Clock this morning
for an indefinite period. This action
was decided upon at meeting held last
night which Assem- bled informally after
the announcement, which was made
late in the afternoon by Mr.. James Fl.
Moore that margin calls could no longer
be met
1t is said. tnoug hit, the adjournment
will last but q few days and that matters
within that time can be Strengthened out
In way that will make the losses as
easy as possible to bear.
Az - -Os s-s Sho PAoSSho oAAho PeSotOAS ~
make any estimate of how large the fig
ure Is or what it's ramifloations may be.
The Moores have unquestionably pur-
chased an enormous line of both New
York Biscuit and Diamond match stock.
Tho high price at which Diamond Match
Etock has been selling makes the sum
involved extremely large. The capital
stock of the Diamond Match Co. is 81,
600, 600 and of the New York Biscuit
50, 200, 600 and it is estimated that the
Moores have purchased half the stock of
the Diamond Match Company and their
purchase of New York Biscuit stock per-
haps bears as lalge proportion to the
total.
class condition.
At the usual hour of opening the stock
exchange was filed with members but
no business was being transacted.
Never in the history of the exchange
has there been suoh suppressed excite
ment 1t is believed that the Moore fail
ure will aggregate between seven and
eight millions.
According to an authority James 81.
Moore and William Fl. Moore his BROTH
er, owned So, 500, 600 worth OF Diamond
Match stock. A portion of this amount
was owned in fee before the speculation
in the stockE began Much however,
was bought at prices ranging between $50
and 240.
The Moores holdings vera majority
Of the total stock issued. 1t so happened,
however, that the balance of the stock
was held byia great many stookhold-
srs. Soon after the stock began it's aerial
flight these minority stockholders began
unloading and in each case the persona
who bought the purchaseable stock were
James Moore and his brother. Most of
these purchases were not cash purchases
but on account, some of them running
80, some 80 days. Margins of five per
cent. were given and in this way at least
50, O00, 000 worth of the stock was bought.
Two banks in Conneotiout, one in
Bridgeport and the other in Hartford,
were the holders ofsthe stock as trustees.
Az the stock fuctuated in value or the
timo limit for purchase account expired
more margins had to be deposited In
this way not less than go per cent. on
par value of stock WAS paid. All this
the Moores paid without hinohing but in
the long run the stock became, notwith-
standing its extraordinary Intrinsic
yalne, frightfully heavy load to carry.
At last the two brothers were substan til
ally the only propTietors OF the big enter
prise. TIE result was inevitable and the
crash followed.
And thus it happens that today while
tho Moores are the losers to the tune of
500, OGO, 900 or $50, 600, 900, the numerous
minority stockholders are the winners,
for they have been the beneffoialies of
the margin paid and their stock is still
theirs although held inltrust.
The governing committee has appoint
ed a sub committee to confer with bank
ers and capitalists with the object of
forming pool to take osue of the Moore
holdings of the Diamond Match and New
York Biscuit.
1t is believed that an effort will be
made to syndicate the diamond Match
stock now out at 1870. If such action is
taken the danger of possible failures re-
sulting from the collapse of the Moore
Brothers will be much les sened n
Chicago banks and bankers who hold
approximately 81, 600, 900 worth of Dia.
mond Match stock as oollateral for money
loaned will not press the borrowers for
a settlement
1t is said that the banks have decided
to accept the stock of the Diamond
Match owned by the Moore brothers at
cash value Of no.
Probably the heaviest losers in the COL
lapse next to the Moore brothers them
selves are the brokers who had been do.
ing business for them on the excahnpe.
At the big stock brokers offices there
was general feeling of uneasiness, the
big failure having stunned and surprised
everybody.
Among the brokers there was only an.
prevail of the course of the exchange
omclais in closing the Institution temper