Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-07-28
BUSINESS
IS SOUND
PROMINENT NEW YORK BANKER
SAYS 1T WILL NOT BE AFFECT
ED BY YESTERDAYS FAILURE.
MAY AFFECT KEENE
Estimated Liabilities of Stow G. Co.,
Are Between $1,25o,ooo and $2,5o,ooo
Say Morsan's Prestige is Conc
RockefeiIers on Top.


RockefeIIers on Top.
New York, July 25.-"The failures of
Taylor & Co., and Stow & Co., in this
city late yesterday afternoon were
mere speculative episodes and in no
wise affect the business situation which
believe to be thoroughly sound" de-
clared F. L. Hine, vice president of the
First National bank of this city in
speaking of the disaster that came toll
the two brokerage firms shortly be-
fore the closing of the exchange.
No statement has as yet been made
by Taylor & Co., though leading
banker states that it is probable that
the liabilities of the firm will exceed
| $6,000,000. Estimates of the condition
of Stow Co., indicate that it's liabili-
ties will range between $250,O0O and
S2,5O0,00O.
Results of Steady Liquidation.
| The crash is believed to have been
the result of the steady liquidation that
has been experienced in Wall street
for the past ten months.
T. j. Taylor, head of the firm of Tay-
lor & Co., is the son-in-law of J. R.
Keene, multi-millionarie and the fall
ure of his concern at once raises the
question as to how it will affect Keene.
J.R.Keene has admitted that he lost
money but that his fortune was not i'm
paired by the failure.
Mexican Holdings the Cause.
The failure of w. l.. Stow & Co. was
the result, it is thought, of too exten.
sive holdings in Mexican Central
stocks. The firm is composed of w.
l.. Stow and Henry Coolidge. They
were interested in a pool in Mexican
Central and had trouble recently in Sc
curing extension of loans. Mexican
Central fell 73s, from 1895 to IL, on the
| announcement of the failure. Mexican
Central first income bonds dropped
BIZ.
Talbot J.. Taylor & Co., it has been
supposed were long of Southern Pa
cihc ever since the beginning of bull
movement by means OF pool in that
stock more than a year ago by James
r. Keene. Southern Pacific sold yester-
day at price about points below the
high record figure to which it was put,
presumably through the bull manipu-
lation of the Keene pool. When no
| dividend was declared on Southern
Pacific and the stock began to decline
i Mr.. Keene began an effort in the courts
to prevent the Union Pacific and the
1 Hartman syndicate from continuing
to exercise control of the Southern Pa.
cific.
No Statement by Taylor.
i After the failure of Talbot ]. Taylor
& Co. had been announced the firm
was asked whether any statement
4 would be given out, and the reply was
that no statement would be made at
this time. The announcements of both
: failures came within half an hour of
the close of the market and caused
4 considerable excitement.
i A representative of W. l.. Stowe &
1 Co. said he was confident the firm
!, would be able to pay its obligations
dollar for dollar. The suspension, he
said, was due to the fact that the firm
was unable to realize on a large
amount of Mexican Central, which it
was carrying. w. L. Stow & Co. made
an assignment to Daniel de Wolf
. Viewer.
mpairs Morean's Prestige.
The losses are felt more acutely
in steel securities than elsewhere.
The fall in these securities has per-
; haps been the keynote in the general
liquidation Which started last year, and
the drop has done more to impair the
prestige of j. p Morgan than the fail
ure of the International Mercantile Ma
rine company. AS one financier ex-
pressed it: Morgan could not
now float a toy ship. Not only is his
prestige gone, but his reputation as a
promoter is nil
The organic cause of the eYtraordi.
). nary downward movement is admitted
to be the overcapitaliZation of the in
dustrial organization. 1t is the general
opinion that more than-half the COM
Danies promoted since 1898 were heay-
lily overcapitalized and it is now taken
as a matter of course that many of
these concerns will be compelled to un.
dergo reorganization, that is. the CAPT
. tai and perhaps the bond Indebtedness
must needs be reduced in order to
permit of continuance of dividends
Loans are Hard to Get.
Up to fortnight ago Europe drew
f literally on the United States for gold
English, French and German lenders
/ insisted upon the payment of loans. Al
: the same time the banks of the country
{ were we'll loaned up. The total at the
: last call of the comptroller of currency
: showed loans heavily in excess Of
Y deposits and as the crop money period
3 is approaching the banking element be
3 comes less inclined to extend accom-
modations to the stock exchange con
tingent .
RockefelIers May Have Pennsylvania
1t is supposed that the Rockefellers
who are always in funds-have taker
t advantage of these drastic conditions
to obtain contracts of several railwa,
y properties. 1t is believed that the,
t have obtained the mastery in Pennsyl
n vania The Rockefellers are now ad
t mitted supreme in st. Paul, and the,
) have bought largely in all of the Gouli
0 lines, including Missouri Pacific, tn,