The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-07-25
THE BUBBLES BURST
UNDER THE STRAIN
Two Suspensions Announced
on the Stock Exchange.
THEY BULLED SECURITIES
The Public Stood AIoof at the Inflated Prices,
The Scheme Collapsed---Taylor AID
Company and Stowe and Com
pany the Men.
(By the Associated press.l


(By the Associated Press.)
New. York, July 24.-The announcement
on the Stock Exchange late today of the
suspension of the firms of Talbot J. Taylor
& Company, and of w. L. Stowe & Com
pany, was the sequel to a period of ex-
cited selling of stocks and wide cuts in
prices. which has not been equalled before
or since the present movement to hqui-
date set in. 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 or spec
ulative collapse. Both firms have been
largely concerned in speculative stock
market pools. formed for the purpose of
taking on a line of stocks, sustaining
their price by supporting orders, real or
manipulative and seeking to realize profits
by selling out to outsiders at the high
prices. Such operations have suffered
from increasing difficulties with the
growth in the stringency of money, the
solicitude of bankers over loans employed
in such projects and the jaded appetite
of the public for securities.
The operations of the firm of w. L.
Stowe & Company were on large scale
in Mexican Central, and the difficulties
which have accumulated upon them are
understood by the price of II, touched by
Mexican Central under the forced selling
today and the high level at 311s last year.
The failure of Talbot J. Taylor & Com
pany viii 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.
Mr.. Keenes operations in stocks are too
numerous to detail, and much mystery
usually attaches to them necessarily from
their nature. But the market manag ge-
ment Of the United States steel stocks on
behalf of the syndicate and the conduct
of the Southern Pacific are the operations
with which his name are most notably
connected.
The accumulation, according to the COM
mon belief, of 100000 shares of
Southern Pacific and the lifting of its
price above eighty, were based upon the
ASSUMPTION that Southern Pacific bonds
were to be issued for that roads work
of improvement and the ne. earnings ap-
piled TO dividends. Talbot ]. Taylor &
Company, as representatives of the pool,
felt themselves powerful enough to chat
ienge the Union Pacific partys refusal TO
adopt their policy and to carry the quar-
rel to the courts The animosities and
resentments engendered by that quarrel
are supposed to have added to the weight
of the firms difficulties and to have aided
in bringing it down.
1t as a veritable '.black Friday" and
although the market rallied very decidedly
at the close and the general situation in
the minds of some was much improved,
great many persons having interests in the
street" went home in anything but a
cheerful frame of mind
1t was freely predicted that troubles
even more serious was impending. From
trustworthy sources it was learned that
these or more commission houses mad been
squeezed" almost to the bursting point
Contracts made today hold over till
Monday, which may enable embarrassed
individuals to get their second wind
The Stock Exchange was crowded. as it
had been all day, with brokers, many of
whom in recent months had been more
conspicuous by their absence from the
board. but who were regular in their at
tendance this week of the gathering finan-
icial storm.
The board room was the scene of wild
excitement all day. Tip" that some
thing would drop before the close of te
market, had gone all around. The hush
that fell, as the official announcements
were made was broken only by the i'll
suppressed buzz of brokers who gathered
in groups and listened intently to the
words of the chairman, perched in his lit
tie white marble balcony.
Then followed another wild scramble
all over the room. thousand telephone
bells rang and almost as many uniformed
m loan ont on
the floor and scurry in all directions. The
excitement subsided only with the clang
of the huge gong, which marked the
closing of the market. While many
sigh of relief went up, there was also
dread of the morrow.
The effect of the Taylor failure upon
James r. Keen's personal fortune is large
ly a matter of conjecture. According to
some reports the veteran operator is
heavily involved, and according to others,
scarcely at all.
Almost 10000 shares of Mexican Central
were dealt in today, the stock selling down
violently from 10 to IL, and closing at
IL IA, net loss of six and half points
The first income bonds declined more than
five points During the last years bull
movement, Mexican Central stock sold as
high as 81 Is.
The appended statement was issued at
the office Of Taylor Company this even
ing.
Talbot j. Taylor & Company have this
day executed general assignment for the
benefit of creditors to Philip J. Britt and
ne has accepted the assignment and has
taken charge of the property and assets of
the firm.
"The assignment of the firm is due to