The San Francisco call., 1896-08-05
MOORE BROTHERS
ARE NOT BROKE,
But Their Failure Causes a
Great Furry at
Chicago.
TREAD ON A VOLCANO.
Spectators Afraid to Operate TOR
Fear of Further Dis
aSterS.
MoNEYED MEN TO THE RESCUE
Thew Will Form Pool to Protect the
Diamond Match and New York
Biscuit Stock.

CHICAGO, Aug. 4.-Brokers about the
Stock Exchange this morning felt as If
they were treading on volcano. Never
in the history of the exchange has there
been such suppressed excitement. The
failure of the Moore Brothers and the col
lapse of Diamond Match was the talk of
everybody a nd took precedence over every
other question. How many others on the
exchange besides the Moore Brothers
would be affected in the big smash-up or
to what extent no one dared to say. All
felt the peril of the hour.
1t is believed the Moore failure will ag-
gregate between 100000 and $4,000, 900.
Such is the sum mentioned by a bank
president who has been especially close to
the spectators during their daring and
dazzling reign.
At the usual hour of opening the Stock
Exchange was filled with mob, but no
business was being transacted. Groups
were gathered here and there discussing
the turn of affairs, and every one seemed
wa iting for some announcement more
definite than notice posted on the doors,
which read: Exchange adjourned sub
ject to the action of the governing COM
mittee. ]. A. Wilkins, Secretary" The
governing committee met at $50 and
promised a statement later in the day.
At the office of Moore Bros. all informa-
ton regarding the failure was denied to
callers.
According to a welI-known official au.
thority, James II. Moore and William H.
Moore, mis- brother, held all told $5, 800 600
worth of Diamond Match stock. A por-
tlon of this great amount was owned in fee
before the speculative era in the stock be-
gan. Much, however, was bought at prices
from $50 TO 240. The Moore holdings were
a majority oftotal stock issued. 1t so hap
pens, however, that the balance of the
stock has been held by great many stock
holders. Soon after the stock began it's
wonderful aerial flight these minority
stock holders began unloading, and in
each case the persons who bought this
purchasabIe stock were James Moore and
his brother.
Most of these purchases were not cash
purchases, but on account, some of them
running thirty, some sixty days. Margins
of per cent were given, and in this way
at least 81, 000, 900 worth of the stock was
bought.
Bridgeport and tie other in Hartford,
were the holders of the stock as trustees.
AS the stock fuctuated IN value or the
time limit for purchase account expired,
more margins had 10 be deposited. In
this way not less than go per cent on par
value of the stock was paid. All this the
Moores paid without fInch1ng, but in the
long run the stock became, notwithstand-
ing it's extraordinary intrinsic value, a
frightfully heavy load to carry. At last
the two brokers were substantially the
only props to the big enterprise. The re-
suit was inevitable and the crash fol-
lowed.
And thus it happened that to-day, while
the Moores, the financial genii of this
colossal enterprise, are losers to the tune
of 100000 or SS,O0O,0 900, the numerous
minority stockholders are the winners,
for they have been the benefciaries of the
margins paid, and their stock is still
theirs, although held in trust.
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: "There is
no inclination on the part of the bankers
here to press matters, as the stocks are
good holding in themselves. The COM
mittee appointed by the governing COM
mittee of the Stock Exchange will un-
doubtedlY be able to make terms but until
everything is arranged the Stock Exchange
will not be opened. L don't consider the
failure (if you so call it) of any great i'm
off
case of inability on the part of Moore
Bros. to put up any further margins, and
that is all there is to it. The Chicago
Stock Exchange in itself amounts to yerv
little outside of local speculative value.
Its influence is slight"
The governing committee has appointed
a subcommittee to confer with bankers
and capitalists with the object of FORMING
a pool to take care OF the Moore Bros.
holdings of Diamond Match and New
York Biscuit. Local bankers and men,
bers of the Stock Exchange say that
everything possible will be done to pre-
vent big slump in stocks.
At 1920 the governing committee of the
Chicago Stock Exchange went into execu-
tive session. The exchange then adj
iourned subject to the call of the commit
tee. 1t is hoped that the Diamond Match
stock now out can be syndicated at 10. If
such action is taken possible fail
ures resulting from the collapse of the
Moore Brothers will be very much les
sened.
Chicago banks and bankers, who hold
$4,000 900 worth of Dia-
mond Match stock as collateral for money
loaned will not press the borrowers for
settlement and will accept the stock of
Diamond Match owned by Moore Brothers
at a cash value Of TO- Probably the heav-
lest losses IN the collapse OF Moore Broth
ers, next to the brothers themselves, are
the brokers who had been doing business
for them on the exchange. Very few, in
deed, are the brokers, too, who did not do
business in that line.
The governing committee of the ex-
change held short session, and after dis
the collapse and the proper course
to pursue as precautionary measure of
general safety, decided to have a commit
tee of its members appointed. The selec-
tion of the sub committee was given to
Malcolm Jameson Of Jameson d Co.