The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-07-25
WALL STREET FIRMS
COLLAPSE UNDER
HEAVY STOCK DECLINES.
Continued From Page One.

| The market wavered in Its nervousness,
! hut il was clear that there was more work
| to be done
| Prices continued their downward course
! and new low records We're established In a
! score of industrial stocks. Then it again
| became known that another failure was to
| be announced.
| once more the chairman rose IN his gal
| lerv and commanded the attention OF the
| excited brokers. This time the announce
| ment was made of the failure of the great
| commission firm of T. ]. Taylor & Co.. in
| whose office James r. Keene had since 1901
| directed the manipulation Of the greatest Of
! all bull markets.
! Another cheer greeted this announcement
| but 1t was even louder and more powerful
than that which greeted the news Of the
collapse Of W. L. Stow & Co.
When the news of the two failures was
| digested the market Immediately showed
! signs of improvement, but hesitated on the
| reports that another suspension was to be
announced. There were. however, no fur
| Their announcements made. and the street
! Immediately assumed that the worst was
| over. The traders thereupon began TO bid
up prices and the market closed with a
remarkable show Of strength.
SAGE THE LARGEST
SECURED CREDITOR
It was stated in a prominent banking
| house that Russell Sage Is the largest Sc
/ cured ceditor of the bankrupt firm of Tay-
/ lor 6; Co.
| All the leading banks have held some Of
| the time and call loans of the Keepe BIO
| kers but the most expert opinion that pre-
vailed had It that most of the largest loans
were ''bailed'' out in the heavy liquidation
In the last week or more In fact. the at
| torneys Of Taylor & Co. admitted tonight
that It was due to the inability Of Taylor
& Co. to liquidate the stocks held by them
! which compelled suspension.
James R. Keene, when asked for an ex-
preston Of his views late tonight, SAID:
| ]. R. KEENE SAYS
| STOCKS ARE CHEAP.
Whats the use of discussing a situation
| when ruling prices are absolutely out Of
| touch with real values. The wonder is that
| such condition can prevail in Wall street.
The market is d,moralized; there seems to
| be a craze to sell everything: people are
as eager to sell as they were to buy q
year ago, when stocks were 80 per cent
higher.
stocks are very cheap, but there is such
| a deluge of them due to recent liquidation.
| and such timidity on the part Of buyers
that except in a few issues, there Is no
market And this while business Is ex-
| cellent throughout the country. railroad
earnings large, and crops promising. Wall
street is the only black spot"
When asked regarding the failure Of Tai
bot j. Taylor & Co.. Mr.. keene said:
II have nothing to do with that I think
| the suspension will be but temporary. They
| evidently thought 1t useless to go on far
| ther, although all their stocks were mar
gined up to bank requirements"
Did the Southern Pacific pool have any
bearing on the failure?'
THE Southern Pacific pool was dissolved
three or four months ago."
The collapse Of the two firms will involve
liabilities of millions Of dollars, but up to a
| late hour tonight no estimate was made as
| to the extent of the aggregate losses.
Only 2O6 shares of Southern Pacific were
| sold under the rule following the an
| nouncement Of the failures.
| CUSTOMERS MARGINS
| BECAME EXHAUSTED.
At the Office of w. L. Stow It was said
| the firm had been carrying great number
of customers whose margins had been ex-
| hausted. Mr.. Stow. it was said. was such
an implicit believer in Mexican Central that
! he used his resources to the utmost in pro-
| tecting his friends.
| PIERCE NIGHT HAVE BEEN
ABLE TO SAVE STOW.
| According to the statement Of person
speaking for Stow & Co.. the failure would
have been avoided II Henry Clay Pierce,
president Of the Mexican Central. had
been accessible.
Unfortunately Mr.. Pierce had accompa-
MED the New York club cruise. and funds
| which, it was stated. he would have been
willing to supply in order to permit Mr..
Stow to complete what would have been a
| brilliant stock-market coup were not at
tainable.
The Mexican Central Railway, Limited.
of Mexico, was incorporated February rs
1880, under the Massachusetts, laws. and
holds Mexican charter and subsidy. Its
main line runs from Mexico City to Juarez.
distance Of 1.2A miles.
In March, 1901. syndicate headed by H
Clay Pierce Of ST. Louis acquired a major
ity of the stock. the amount OF which out
standing at that time was about $4SooO.0oo.
In January, 1902 the company issued &c.
900 collateral trust ive-year 4h-per-
cent bonds, secured by s1S,12s,0o0 consolidat-
percent consols of the Mexican Central
proceeds of which were used for the retire.
ment of sS.00000o notes issued in payment Of
the Monterey and Mexican Railroad. The
balance was used, according to report, for
the extension of the Monterey road.
The Mexican Central Securities Company.
limited. was formed in 1899. to acquire the
per cent consols of the Mexican Central
Railway, land to issue in their place two
classes OF securities" Several prominent
Englshmen including Lord Hillingdon and
Lord Revelstoke. were among the original
trustees of the securities company.
The appended statement was issued at
the office Of Taylor & Co. this evening:
JAMES r. KEENE is
UNSECURED CREDITOR.
Talbot J. Taylor & Co. have this day
executed a general assignment for the hene-
fit of creditors to Philip ]. Britt. and he
has accepted the assignment. and has taken
charge of the property and assets of the
firm.
THE assignment Of the firm Is due to
their inability to liquidate the stocks which
the banks held for their account. All banks
having loans with them are well protected,
but the inability to liquidate the stocks so
held has caused the suspension. which. It is
hoped. will be temporary. II the banks take
the reasonable view that by waiting grad
ual liquidation can be effected without dis
unsecured creditor of the firm is Mr.. James