The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-07-25
BLACK FRIDAY
IN WALL STREET
Two Prominent Brokerage Firms
Forced to Suspend.
OTHER FAILURES ARE FEARED
ATMOSPHERIC MAY CLEAR BY
MONDAY.

New YORK, July 24.-The announce
ment on the stock exchange late
today of the suspension of the
firms Of Talbot J. Taylor & Co. and
w. L. Stow & Co. was the sequel to
period Of excited selling of stocks and
wide outside prices which has not been
equalled before since the present move
ment to liQuidate set in. There is
nothing in either failure that can be
traced to business or Industrial condi-
lions outside the exchange, the case ly-
ing close to a diagnosis of speculative
collapse. Both firms have been largely
concerned i'm 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 put to outsiders at
high price. Such operations have suf-
feTed from increasing difficulties with
the growth in the stringenCy of money.
the solicitude of bankers over loans en-
plOyed in such projects and the jaded
appetite OF the public for securities.
The opera tions Of the firm of w l..
Stow & Go. were on a large scale in
Mexican Central. and the difficulties
which have beset them are under
stood by the price Of II touched by
Mexican Central under the forced sell
ing today and the high level at 31b
last year.
Kane's Interest.
The failure of Talbot J. Taylor &; co.
will inevitably be connected with the
great market operations of James r.
Keene by reason of Mr. Keene's family
connections with and frequent employ
ment OF the firm. Mr.. Keene's opera
tons in stocks are too numerous TO de-
tail and much mystery usually at
taches to them necessarily from their
nature. But the market management
of the United States Steel stocks on be-
half Of the syndicate and the conduct
OF Southern Pacific pool are the Oper-
ations with which his name is most
notably connected. The accumulation.
according 10 common belief. of 100000
shares Of Southern Pacific and the lift
Ing of its price above so were based
? urOn the assumption that Southern Pa
cific bonds were to be issued for that
roads work OF Improvement and the
net earnings applied to dividends. Tai
bot j. Taylor & Co.. as representatives
of the pool, felt themselves powerful
enough TO challenge the Union Pacific
party's refusal TO adopt this policy and
carry the quarrel to the courts. The
animosities and resentments engen-
dered by that Quarrel are supposed TO
have added to the weight of the firm g
difficulties and to have aided in bring
ing it down.
"Black Friday"
1t was the veritable BLACK Friday
and. although the market rallied very
decidedly at the close and the general
mutation in the minds of some was
much improved. a great many per
IONS having interests in the street
went home in anything but a cheerful
frame Of mind. 1t was freely predict
ed that trouble even more serious was
ID,pending From trustworthy sources
1t was learned that three or more COM
mission houses had been squeezed
almost TO the bursting point
Contracts made today hold out till
Monday. which may enable embar-
raised individuals to get their second
wind.
The best information is that the in
Z solvent firms had comparatively few
outstanding commitments and these
II is believed, were settled privately on
the floor
1t is said that prominent interna-
tional banking house with important
railroad interests in Mexico bought I'D
orally today of Mexican Central
Report SAYS that Taylor & Co solo
privately TO a large banking interest
which it some time ago antagoniZed
AZ. 900 shares Of Southern Pacific.
Second Crash.
The Stow failure was announce,
shortly before . D. m. and that o
TAYLOR & Co. followed within less tina!
ten minutes. The stock exchange wa
CT wded. as it had been all day, Will
brokers many of whom in recen
months had been more conspicuous b,
their absence from the board, but VIII
were regular in their attendance thi
week because OF the gathering tinan
rial storm The visitors gallery Of tn
l. 4 hofA IN Tod
OF strangers.
The board room was the scene o
wild excitement all day. A tip tina
something would drop before the clos
Of the market had gone all around
The hush that fell as the official an
ncuncements were made was brOkel
only By the Unsurpassed buzz o
brokers. who gathered in groups ant
listened intently TO the words Of tn
chairman. perched in his little whit
marble balcony
Then followed another wild scrambl
all over the room. A thousand tele
phone bells rang. and almost as man
uniformed messenger boys seemed I
leap out on the floor and scdrry in a
directions. The excitement subslde
only with the clang Of the huge son
which marked the closing Of the mar
ket While many a sigh of relief wen
up. there was also dread Of the NOR
row.
Failures Unexpected.
To those who were in the know" tn
Stow failure caused little surprise. bu
the Taylor embarrassment was reall
unexpected Much had been said o
that firms affairs i'm the last TWO year!
and I'm its operations i'm Southern Pa
c{fc. Metropolitan Street railway an
certain other stocks still fresh in In
minds of those who follow the mar
ket The street and many visitor
understood the Taylor Keene connec
items. Talbot J. Taylor is j. r. Keene'
brother-in-law His brother. James
Taylor. and Foxhall p. Keene. son O
James r Keene constituted the firm
Young Keene. who is an internationa
sportsman. is n special partner, in tn
sum. Il Is said OF S2500 900
Taylor & Co. have been the prinCipa
'Keene'' brokers for the last tire
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