The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-05
DIAMONDS TURNED TO DUST.
A BIG FAILURE ON THE CHICAGO
EXCHANGE.


change Is Completely Upset and
Closes Indefinitely for Recupera-
tiOn-The Eject in New York.
Chicago. H., Aug. 4.-The speculative
deaf In the Diamond Match Company's
and the NV York Biscuit Company's
stocks has come to an end.
Moor, Bros. have failed.
The greatest speculation ever known in
Chicago has eliminated in failure OF
the people who were behind the deal.
The Chicago Stock Exchange adjourned
at 10 o'clock this morning. for an indeh-
mite period. This action was decided upon
at a meeting held last night, at which
there were representative bank presi-
dents members Of the stock exchange
committee, and number OF prominent
capitalists. This meeting was assembled
informally after an announcement which
was made late in the afternoon by Jas.
C. Moore, that his margins calls could
be no longer met. That announcement was
made to few of the men most interested.
and il was thought best to call a meeting
10 discuss the situation. Those who as
sembled discussed the best means OF re-
storing confidence after the shock which
would be given to speculative circles by
the announcement OF the failure.
1t was the general opinion that It would
be the wisest possible move to close the
stock exchange for period. 1t was
thought that the adjournment will last
but 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.
All those present at the meeting last
evening felt that should the exchange
open as usual this morning before the
facts were properly understood. IL would
make a slaughtering of values which
would cause great and In a large meas
upe, unnecessary loss. They believe that
the closing of the exchange and the pre-
vention Of making Of speculative quota
tions for securities, would enable brokers
having open trades to close them, and the
situation could be liquidated IN a large
measure without the sharp decline that
would surely follow trading on an open
market
1t is not at present possible to make
any estimate of how large the failure Is,
or what its ramifications may be.
The Moores have unquestionably pur-
chased an enormous line of both New
York Biscuit and Diamond Match stock.
The high price at which the Diamond
I
involved i'm handling II extremely large.
The capital stock of the Diamond Match
| Company Is $l1,0JO0O0, and of the New
| York Biscuit $90O0,0OO, and It is estimated
that the Moores have purchased half the
capital stock of the Diamond Match Com
pany, and their purchases of New York
Biscuit stock perhaps bears as large q
proportion to the total
William Fl. Moore, the senior member
of the firm, is at present i'm the east.
James II. Moore, who has been the inn
mediate active manager of the specula-
ton campaign Is in Chicago, but last
night declared that he was not yet in
a position to make any statement as to
the amount involved.
William II. Moore IS the first vice presi-
dent of the Diamond Match Company,
and the president OF the New York Biscuit
Company, James II. Moore, Is the second
vice president of both.
At the usual hour of opening the stock
exchange was filled with members, but no
business was being transacted. Groups
We're gathered discussing the turn of
affairs, and every one seemed waiting for
an announcement more definite than the
notice posted on the doors, which reads:
Exchange adjourned subject to the ac-
ton Of the governing committee. j. A.
wilkins, secretary"
a gentleman close to the spectators ex-
plained the failure in this WaW James
il. Moore and william H. Moore owne l.
all told, $5,J00,00O worth Of Diamond
Match stock. A portion OF this was own-
ed in fee before the speculative era In
stock began. Much, however, was bought
at prices ranging between 150 and 2iO. The
Moore holdings were a majority Of the
total stock issued. 1t so happened, how
ever, that the balance OF stock was held
by a great many stockholders. Soon at
ter the stock began its wonderful aerial
flight, these minority stockholders began
unloading, and in cath case the persons
who bought were James Moore and his
brother. The most of these purchases
count, running thirty 10 sixty days. Mar
gins Of ) per cent were given, and IN
this way at least $2,0eO,OJ0 worth Of stock
was bought, two banks in Connecticut
one in Bridgeport, Conn, and another IN
Hartford, We're holders Of the stock, as
trustees. AS the stock fuctuated in value
or The time limit for purchase account
expired more margins had to be deposit
ed. In this way not less than 50 per
cent. on The par value of stock was paid
All this the Moores paid without finch
ing, but in the long run the stock became
withstanding its extraordinary intr.n>
sic value, frightfully heavy load to car
ry. At last the two brokers were SUD
stantially only props to the big enter
prise. The result was inevitable and tbs
crash followed, and thus IL happens that
to-day, while the Moores, the financial
genii OF this colossal enterprise, are los
ers to the tune Of %,000,00O or SS000,0J3,
the numerous minority stockholders are
winners for they have been the benefi-
Charles of margins paid, and their stock
is still theirs, although held in trust.
The governing committee is appointing
a subcommittee to confer with bankers
and capitalists with the object Of form
ing pool to take care of the Moore Bros
holdings of the Diamond Match and the
New York Biscuit Company. Local
bankers and members Of the stock ex-
change say that everything possible will
be done to preventing big slump in the
stocks.
1t is stated that the banks have decided
to accept the stock of the Diamond Match
Company, owned by Moore Bros, at $40.
Probably the heaviest losers in the collapse
next to Moore Bros, themselves, are the
brokers who had been doing business for
them on the exchange Very few indeed
are the brokers who did not do business in
that line
Speaking Of the collapse, John j. Mitch
ell, president of the Illinois Trust and Saw
ings Banks, said: ''I'he banks will not lose,
for they had anticipated just such crash
as happened yesterday. That speculation
in stock could not last, everybody knew.
panic in stock was bound to result For
some time the Chicago banks decided not
to loan any more money on Diamond
Match stock than they had already loaned
say 100 This collapse wiM clear the atrnos-
phere, and do not anticipate any serious
results to others than the parties directly
concerned"
A committee Of five members of the gov