The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-08-08
BIG DEAL COLLAPSES.
Moore brothers, Operators Noted for
Thar BoIdness. Forced TO tho Wall
New York Biscuit stocks fnvoised
STORY OF the Failure.


about midnight at the residence of one
of them on the South side and II was
agreed by them to close the Chicago
stock exchange indefinitely.
Means for Restoring Confidence.
There were present at the meeting
the members of the stock exchange
governing committee and a number of
prominent capitalists. This meeting
was assembled informally after the an
nouncement which was made late in the
afternoon by James III. Moore that mar
gin calls no longer could be met. The
announcement was made 10 a few OF
the most heavily interested, and IL was
thought best to call 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 10 speculative
circles by the announcement OF the
failure. 1t was the general opinion
that IL would be the wisest possible
move TO close the stock exchange for
period.
How the Failure Came About.
The deal OF which the failure of The
Moore Bros. is the elimination is by
ell odds the most important in the his
tory of the Chicago stock exchange.
IT began early this year. The stock of
the Diamond Match company has been
selling at about 100 for quite n time.
There had been no special activity III
the market. Just prior TO the Nene-
.zuclan incident the tip went out IN
inside circles that there were 10 be some
important European Developments in
connection with Diamond Match af-
fairs, and the buying of the stock by
strong people commenced. The Vene'
xuelan panic interfered with the specu-
lation and the stock dropped during
the general decline at that time TO
LIS.
Contract with Foreign Governments.
From then the rise started which is
the most remarkable in the history Ct
the exchange. A strong group OF spec
.uiators headed by j. ii. Moore and Viii
linn II. Moore. began buying the stock
It moved up with scarcely halt IN
time the announcement was made that
Sc the Diamond Match company had closed
. "A contract with the French government
under which its patents and the ma
chimes controlled by the match COM
many were 10 be sold TO the French gov
.ernment for a royalty OF 100000 year.
Following the announcement Of the
closing OF the French contract the stock
advanced with great rapidity. In the
enrlv speculation the bulls had named
roo as an extreme figure, but as the
prospect of further arrangements in
Europe appeared, much higher prices
,were predicted.
Negotiations were opened for the for
nation OF n new company in England
which would unite with Bryant g. May,
the largest match producers in Great
Britain, and would give TO the English
field the advantage of the labor-savipg
American machinery. factory was
equipped in Liverpool which was owned
Inv the Diamond Match company and
which served as an object lesson 70
European manufacturers. showing them
the great advantage OF the improved ma
sehinery over their methods of manu-
-facture. Negotiations were opened also
lin Austria for the formation of n com
pany which should combine all the man
Stfacturing interests there. Other com
,panies were TO be organized in Belgium
aud Italy.
calculation shown enormous profits
10 accrue made prices that had at frs
looked extravagant seem cheap. TIT
shrewdest men i'm Chicago believed il
che property and the stock sold up n
high as PAS. From that point ther'
was n rapid decline, carrying il down q
200. The Moores went through thu
break without the slightest difficulty
and it was generally believed that the.
had been glad 90 see the decline tina
more stock might be accumulated.
A great part OF the capital with whici
the deal had been carried ON had beel
raised i'm New York and New England
Local banking institutions are onl
moderately interested In the affair
Difficulty WIS experienced, IL is said
owing TO the general loss of confidenc,
stn renewing some OF these eastern loans
The Crash Comes.
Settlement day was successful
Eoassed. and. everyone believed that, !
spite Of the heavy turning charges, Oh
huIls were still in control of the situs
sion. The stock came out, however, !
enormous quantities. The Moores wer
almost alone in supporting the markc
but they did so with remarkable cou
age Monday the stock was held wit
hardly wavcr at e22, but there was q
thtbouring OF long stock which led IL
hcen observers OF the market TO feI
chat the loads might become too heav.
and the events later i'm the nfternoo
proved that those fears were correct.
The Deal In New York Biscuit.
The deal in Diamond Match was onl
v3sft " THIS great speculative operatio
Moore Bros. had organized the Ne
Work Biscuit company several yea
sago. after the first great success
the Diamond Match company. III
panic OF 1898 had hit the biscuit cor
pnny severely, as IL did nll other indu
tries. and the stock sold far below pa
The success which was met with In