New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-09-06
WATSON & co. ASSIGNS
Gid TO BE HILL HOUSE.
Last Heartily in Slump of Great
Northern Securities.


--x.hsnre. announced its assignment yesterday
- rank Newell manager OF the concern
-. ,a+e,r,e7t Of the firms assets and liabilities
-5zen out The liabilities are variousy
,-,a+ed 70 be between S20ooooo and 5000
40 or,is T Watson is the floor member. The
,,er members CT the firm gre Henry T Wat
-. t5erschel V. Jones and Charles E Ander-
son. ..,.s 4.
Tho failure Of Watson & Co was attributed 10
-, steady depreciation in Great Northern and
D--,he-, Pacific stocks. in which they were
,ioanE traders. Their large dealings in the
.,,,s ~ lanes J. Hills railroads caused them
>. ~ known as a Hill house HerscheH v
- who vas a resident partner in charge
e their business IN Minneapolis. where the
e., r-as largely interested in grain. is said to
70 E close friend Of Mr.. Hill Jones is a wei
,,,ov-7 crop expert A story was told that the
- lad anplied to Mr. Hill for assistance 10
.,.-t the failure Mr.. Hill denied last night
10. e:-her ne or his son. Louis w HILL or MS
..-=s had accounts with the assigned con-
ce-r as was reported. It IS known however
that they figured among thei- clientele seVeral
vel known men,
Watson & Co. It was also learned. had sore
extensive operations in coffee, in which there
hiss been marked decline. and has now ou'-
.-sn6ing contracts for about $4,000 bags IL
.1eo had transactions on the Cotton Exchange
hrt these are said to have been small. ire
zrn's grain operations. however. are known 10
have been heavy. for the firm did large bnsl-
ress II the Northwest. having branches IN
,1i,reanolis. Duluth. Fargo and Winnipeg. The
statement was made though thai the hrrn SUI
tered no losses from its grain business
On ,be announcement of the failure there was
charm break in wheat options. although at the
r.ocl Exchange there was no noticeable effect
Thu FIRMS customers. il said, had made
.,ore,, in the seasons advance in wheat be
,.use of the houses bullish position on that
commodity.
PM with the Great Northern and Northern
Pacific they Jared badly. The Great Northern.
for instance reached its highest point in Feb
-,,srz 1905, when il was quoted at 34s, IN De-
cernber the highest quotation was $50, While
nov, II averages about 100. which, with the ore
certificates makes IL 1S5. or a depreciation or
1ss points since February, 1906. There was
big break in January Of this year. and another
slump in March. and these seriously affected
Watson & CO.
According to Mr.. Shoemaker. of Shiland. Shoe
-rsker f. Hedges attorneys for the assignee. the
bank loans Of the firm are amply secured with
9 xood margin over Mr. Shoemaker added that
the accountants who are engaged on the firm
books would possibly he able to tell to-day what
The assets and the liabilities would be. One
member Of the firm is the owner Of extensive
lumber lands in the Northwest and in Canada
which. when included with the available assets,
wfU probably bring them I'D considerably AT
any rate, a representative Of the concern was
sanguine yesterday that IL would resume
business just soon its affairs could be
arranged that attachments could be taken
out against It
Mr. Newell the assignee. refused TO discuss
the failure in any detail Many persons in
Guiding customers called at Watson & Co 3
Offices. ct No 81 Broad street, but were met at
the door by young man who had orders 20
admit no one The Offices of the firm the
third floor were among the most luxuriously
equipped Of any in the financial district The
failure had apparently been anticipated the
Stock Exchange. where prices were weak during
the morning on the rumor that II was impend-
ing member of the exchange told reporter
that he had the Information from Chicago.
where the firm has a seat the Board Of
Trade, an hour before the assignment was an
nounced. But the actual announcement did not
induce any considerable selling. Prices Of
stocks were at their highest Of the day just
after the failure was posted.
The firm of Watson & Co was organized in
1891. Besides its branch Offices at Minneapolis
Duluth. Fargo and Winnipeg. il has branches
Hot Springs and at No. 527 Fifth avenue
Louis T Watson. the only member Of the' firm
living in this city. has his home at No. 524
Fifth avenue. The other members live in Min
nesota, where the firm was organized. Every
since its organization the company has made
2 speciality OF grain futures. Herschel V.
Jones formerly publisher of Commercial
West" q newspaper devoted TO grain interests.
He has a wide reputation throughout the coun-
try as an expert cereal crops. When Charles
@. Gates & Co. went out OF business a few
months ago Watson & Co. took over some of
the large accounts held by that firm. It also
took oyer some Of the accounts Of John H.
Wrenn & Co.
The failure was regarded as an important
one because Of the firms extensive grain OPP
erations and because among its clients were
some OF the most prominent operators in the
financial district. The assignment papers were
signed by Louis T. Watson. AS usual. the an
nounoement vas made that It was for the
benefit OF the creditors
IBy Telegraph The Tribune
Chicago, Sept. 12.-Announcement of the ap-
pointment OF receiver for Watson g. Co. caused
great surprise 10 many in the grain trade here.
watson & Co. had been among the heaviest
Spectators I'm the wheat market both in Chi
cago and IN their home city. Minneapolis. for
several years They were believed to have
made hundreds Of thousands of dollars here.
among well Informed persons of the trade there
Aad been rumors os trouble for the last few
weeks, and the general opinion was that it was
me result OF operations in the New York stock
market They We're credited here with standing
nigh in the favor OF James J. hin. who II is
SAID. used them largely as brokers in his indi-
Fldual stock operations.
Mere than a million bushels OF long wheat
we're sold out for the account of Watson q
g. on the market here this forenoon, and was