Birmingham state herald., 1896-08-05
DISASTROUS FAILURE
Causes the Chicago Stock Ex-
 change to Close.
MOORE BROS.' SPECULATION
Failed to MateriaIize They Are in the Soup to the Extent of Nearly Eight
 Million.

NA$NeA in the Diamond Match and the New York Biscuit stock has come to an end. Moore Brothers have failed. The greatest speculation ever known in Chicago has eliminated in a failure of the people who were behind the deal.
 The Chicago stock exchange adjourned at 10 o'clock this morning for an indefi- nite period. This action was decided upon at a meeting held last night, at which were representative bank presi- dents, members of the stock exchange committee and number of prominent capitalists. This meeting was assembled informally after the announcement, which was made late In the afternoon by James H. Moore, that the margin calls could be no longer met
 The announcement was made to few of the men most heavily interested, and 1t was thought best to call meeting to 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. It was the general opinion that 1t would be the wiseSt possible move to close the stock exchange for period. It Is thought that the adjournment will last but a 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 the bears would make slaughtering of values, which would cause great and in large measure unnecessary loss. They beneVe that the closing of the exchange ana the prevention of the making of specuIa- tive quotations for securities would en- able the brokers having open trades to close them and the situation could De liquidated in large measure without a sharp decline that would surely follow trading and an open market.
 It is not at present possible 10 make any estimate of how large the failure Is or what it's ramification may be-. The MooreS have unquestionably purchaseu an enormous line of both New York BIS cult and Diamond Match stock. The high price at which the Diamond Match has been selling makes the sum involved in handling it extremely large
 The capital stock of the Diamond Match company Is $11 900 and of the New York Biscuit company $9, ,000, 900, and 1t Is estimated that the Moores have pur- chased half the capital stock Of the Dla- mond Match company ana tnelr pur- chases of New York Biscuit stock per hapS bears as large proportlon lo lhe total.
 William H. Moore, the senior member of the firm, is at present in the east. James H. Moore, who has been the im- mediate active manager Of the specula- tive campaign, Is in Chicago, put last night declared that he was not yet In a position to make any statement as to the amount involved. William H. Moore is the first vice president of the Diamond Match company and president or the New York Biscuit company. James H. Moore is second vice president or poth
 At the usual hours of opening the stock exchange was filled with members, but no business was being transacted. I tgAII C0t turn of affairs, and every one seemed waiting for some announcement more definite than the notice posted on the doors. which read: "Exchange adjourn ed subject to action of governing com mittee. J. A. Wilkins, secretary"
 A gentleman close to the speculators explains the failure in this way: James H. Moore and William H. Moore owned all told $5.500,000 worth of Diamond Match stock. A portion of this was own ed in fee before the speculative era in the stock began. Much, however, was bought at prices ranging from 150 to 24O. The Moore holdings were majority or the total stock issued. It so happened, however that the balance of the stock was held by a great many stockholders. Soon after the stock began it's wonderful aerial flight these persons who bought were James Moore and his brother
 Most of the purchases were not cash purchases. but on account, running thirty to sixty days. A margin of per cent was given, and in this way at least $2,Ooo,- OOO worth of stock was bought. Two banks in Connecticut, one in Bridgeport and another in Hartford, were holders Of the stock as trustees As the stock fiuctu- ated in value or the time limit for pur- chase account expired more margins nad to be deposited. In this way not less than 60 per cent on the par value of the stock was paid. All this the Moores paid without fiinching, but in the long run the stock became, notwithstanding its eX- traordinary intrinsic value, frightfuly heavy load to carry. At last the two brokers were substantially the only props xo the big enterprise The result was in- evitable, and the crash followed.
 And thus 1t happens that today, While the Moores' financial genius of this CO., lossal enterprise are losers to the tune of s7 OOO 900 or $S,000000, numerous minority stockholders are winers, for they have been the beneficiaries of the margins paid and their stock Is still theirs, although held in trust.
 The governing committee Is appointing subcommittee to confer with the bank CTS and capitalists with the object of forming a pool to take care of the Moore Bros holding of the Diamond Match and New York Biscuit. The local bankers and members of the stock exchange say that everything possible will be done to prevent big slump in stocks.
 Stock Good for Itself.
 The Moore brothers are of middle age, and lawyers by profession. Their busi- ness life has been passed in Chicago. tai nj in the cO-