Evening star., 1927-05-29
RY 7. A. FLEMING.

b1 j. n. FLEMkNU.
E1ay!ng aside the history of the
Washington Stock Exchange for a
| time, and turning attention to one of
| the worst if not the most serious fail
ures in the business annals of
Chicago-and the Western metropolis
has witnessed a number of fairly large
business ruins.).
August 6, 1896. Chicago awoke to
read of a great financial disaster. For
some months previous to this date,
William III. and j. Hobart Moore,
corporation attorneys, had been en-
gagged in the manipulation of the
stocks of two local corporations with
the business affairs of which they
were thoroughly familiar-Diamond
Match Of Illinois and New York
Biscuit. both high.grade industrials.
For years the former had paid
regular 10 per cent annual dividends,
was not bonded for cent, and seemed
to have something of a monopoly of
the American business, with constant
ly increasing Swedish competition and
with Edwin Gould's Continental Match
Co., slowly coming to the front
Good Security.
Biscuit" the general term for the
other stock was not to be mentioned
in the same terms with Match" but
for all that it was a good security.
The bull campaign was opened first
in Match and then in Biscuit, and,
both were in full swing when the
Chicago Stock Exchange closed its
doors on Saturday, August 4, 1895.
but there had been considerable pres
sure in the liquidation of that day.
The manipulators did not do busi-
ness through one firm of brokers, but
scattered orders here and there and
on the last business day before the
suspension they had selected Fred G.
Frank to do their buying. Mr.. Frank
was a broker of good reputation, but
not especially strong financially. GER
tainly not strong enough to become
responsible. as he had to, for the large
purchases of the Moore Brothers.
Greatly Extended.
Moore Brothers were alleged to
have gone in very deeply, using bank
credits to the limit and then, so re.
ports said, having p. d. Armour,
George NJ. Pullman and other rich
men of Chicago make advances on
their purchases.
They had forced Diamond Match
from 12o to 235 share, approximate
ly, and Biscuit up SO points, also ap.
proXimately. Many people had made
large gains and there were scores of
followers when the unexpected end de.
veloped.
The better to understand the situa-
ton, it is necessary to state that a
large speculative movement was un-
der way in the West and North Chi.
cago Street Railway shares. 1t was
alleged that Charles 7. Yerkes was
heavily involved on the bull side OF
the market in the two stocks. not only
in operations for immediate delivery.
but in 80 and 60 day options and
calls.
The publication of a statement to
this effect a short time previous, with
responsibility at the door Of the writer
of this review. brought demand for
an apology, which the attorney Tor
the company was invited to indlte
himself.
Then came the denoument.
The SMASH s15,oOo,O 900 Crash.
Sunday, August 5, brought an ad'
mission from Moore Brothers that
they were through and that evening
the bankers and brokers were sum
moned from. their front porches. from
Lake Geneva, from their clubs and
families to meet at the home of z. ID.
Armour for the consideration Of grave
propositions-and every one seemed
to know what it meant.
Charles T. Yerkes was the last 10
put in an appearance. They were wait
ing anxiously for him. They all knew
the facts of the story OF his reported
operations.
AS he entered the parlors Of the
mansion he noticed financial Chicago
sitting glum, blue as indigo, not
smile on any mans face.
At each mans feet was his straw
hat. for it was very warm in chicago
and the summons had been so lmper'
atiye that there was no time Iof
brushing up
Debonaire Charles T. Yerkes. hand.
some. always a swell dresser and
brighter than a new dollar just out
of the mint, vas the last to arrive
lie looked around the parlors and
greeted the assembly with this asser
ton:
Never before have seen so many
straw hats at a funeral.
What Are You Going to DO?
fIr. Armour stated the situation as
IL existed. The Moores could go nc
further and the men present desired
to know lust what Mr.. Yerkes pro
posed to do. Many of them were Ger
| tain to have large gains on paper, II
the Chicago Stock Exchange opened
for lsiness the next morning. while
an equal or even larger number were
| sure to go broke in the same eventu
ality.
what are you going to do?" Mr.
Yerkes fired back quickly. adding
| "open your stock exchange tomorro"
and we will all go broke, me too; keer
it closed for 80 days, declare !. mora
| torium for that period, and let every
one make an earnest effort to get al
| transactions squared and off tht
books by that time; then start ou
with a clean sheet"
That's What They Did.
There was some tall hustlins be
tween then and the reopening, com
promises were accepted where moth
| ing better could be obtained and 81
| far as known not a single failure re
suited. Prices broke sadly, natur
aIlv. for the imitation was without rea
son, but some way they managed t
prevent any suit or publicity mark
ing the failure.
Even Mr.. Frank continued 20 d.
business in the former location. AM
Moore Bros. still looked after corpora
ton affairs of the two big corpora
| tions.
Then They Sent for Vanderslip.
Having reached an agreement an
named a publicity committee to IAN
e the story in the h.orning papers
they sent for Frank Vanderslir
financial editor of the Tribune, VIII
handled the publicity.
| Nnthinp WAS said or even hinte