The Montgomery advertiser., 1903-07-25
IN
 WALL STREET Two Firms Compelled to ospen'' VIE, SABLE BLACK FRIDAY la-
VIE, o,s ABLE BLACK FRIDAY
.Heene'S SOn-in-law One of : Those to Go Under.
Water Being Squeezed in Streams from the "Indigestible" secur- ities-More Serious Trouble
 Said to Be Impending.

New York, July Alt was veritable Black Friday in Wall Street and al- though the market rallied decidedly at the close and the general situation in the minds of some was much improved a great many persons having interests in the street" went home in anything but a cheerful frame of mind.
 It was freely predicted that trouble even more serious was impending. From trust worthy sources it was learned that three or more commission houses had been ''squeezed' almost to the bursting point Contracts made today hold out till Mon- day, which may enable embarrassed in dividuals to get their second wind.
 The best information is that Talbot J. Taylor and W. L. Stow. the failed con- cerns, had comparatively few outstanding commitments and these, 1t Is believed, were settled privately on the floor.
 It is said that a prominent interaa- tional banking house with important rail- road interests in Mexico, bought Hberally today of Mexican Central.
 Report says also that Taylor and Com pany sold privately to a large banking interest, which it sometime ago aI:ago-,
 
 Speculative Collapse.
 There is nothing in either failure that can be traced to business or industrial conditions outside the exchange. the case lying close to a diagnosis of speculative collapse. Both firms have been largely concerned on a line of stocks, sustaining their price by supporting orders. real CT manipulative, and seeking to realize prof- its by selling out to outsiders at the high prices,
 Such operations have suffered from in- creasing difficulties with the growth in the stringency of money, the solicttude of bankers over loans employed in such pro- Jects and the jaded appetite of the .'Iblic for securities.
 The operations of the firm of W. l.. Stow 6 Go. were on a large scale in Mex ican Central and the difficulties which have accumulated upon them are under stood by the price Of eleven touched by Mexican Central under the forced setilng , today and the high level at u I-S last year.
 The failure of Talbot J. Taylor & Com pany will inevitably be connected with the great market operations of James R. Keene by reason of his family connection with, and frequent employment of the firm MT. KeeneH operations in stocks are too numerous to detail and much mystery usually attaches to them nec- eSSdTlly ITOHl lnclT put lnO ket management of the United States Steel stocks on behalf of the syndicate and the conduct of Southern Pacific pool are the operations with which his name was most notably connected.
 Keene and the Failure.
 The general belief in the street this evening was that Mir. Keene had no con nection with the failure but that he re- fused to come to the relief of his son-in Ia There confirmation Of thiG story. but 1t is based on the following:
 Last summer, Talbot J. Taylor was re- ported to have had falling out with his father-in-law. arising out of reported purchases of Southern Pacific by MT. Fay Tor, on his own account, independently of the pool. which MT. Keene was running in that stock According to the story, MT. Keene was angry when he discovered the fact With the break in the stock market last October, Southern Pacific de- clined severely, and 1t was asserted in some quarters that MT. Taylor was among the losers Since that time Mir. Keene has not been much in the office of T J Taylor & Co. but this was probably due to the fact that he was iIl at his hotel. and could not get down town for a num- Der of months
 Ii was alleged that MT Keene had stop ped giving any orders to the firm of his son-in-law for execution on the Stock Exchange. but that he was using the firm of Samuel Babcock for the largest number of his transactions. But many doubted that there was any truth in this story because the veteran operator, since his return to Wall Street. several weeks ago, has continued to make his head quarters in h's old office, Immediately adjoining those of T. J. Taylor & Co.,, and connecting with them.
 The effect of the Taylor failure on J. Keene's personal fortune Is largely a matter of conjecture. According to some reports the veteran operator Is heavily involved, and. according to others scarce ly at all. The company of the firm is Foxhall Keene, James R. Keenes son.
 Hartman and Whitney.
 There are many who believe that the Taylor failure is directly due to the bad blood stirred up by that firm and MT. Keene in the Southern Pacific and Metro politan suits. Tn fact, 1t has frequently been said that the Hartman and Whit ney interests would not be satisfied with anything less than the scalps of the Keenes and Taylors. because of these episodes.
 The firm of W. L. Stow & Co.,, CW L. Coolidge) was organized In 1899, and has been known almost ever since as the stock market representatives of the Mexi- can Central Road. The firms manipula- ton of Mexican securities was frequently a matter of general gossip.
 About 76000 shares of Mexican Central were dealt in today. the stocks selling down violently from 19 to II, and closing at F 1-4 a net loss of 1-2 points. The first income bonds declined more than 5 points. During last years bull move ment Mexican Central stock sold as high at 31 Is.
 The Mexican Central. Limited. of Mex ico was incorporated February 25, 1880. under the Massachusetts laws and holds a Mexican charter and subsidy. Its main line runs from Mexico City to Juarez. a distance of 1,224 miles.
 In March, 1901. syndicate headed by IT. Clary Pierce of St. Louis. acquired majority of the stock, the amount of which outstanding at that time was about $4S, GOO, GOO. Tn January. 1902. the company issued 900 collateral trust fve- year ( 1-2 per cent bonds, secured by