Henry Allen & Co. - New York, NY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: private
Start Date: May 4, 1893
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 3b72af73

Response Measures

None

Description

Henry Allen & Co., described as a firm of bankers/brokers, suspended payment announced May 4, 1893 after the collapse/shrinkage in National Cordage stock. By mid-June 1893 a report says the firm will probably resume business (reorganization plan, creditors to accept 50 cents on the dollar), indicating a suspension followed by reopening.

Events (2)

1. May 4, 1893 Suspension

Cause: Local Shock
Cause Details: Severe shrinkage in National Cordage Company's stock and related market panic dragged down brokers and bankers, leading Henry Allen & Co. to suspend payment.
Newspaper Excerpt: Shortly after the opening the market was thrown into a condition of panic by the announcement of the failure of Henry Allen & Co.... have announced their inability to meet their pecuniary obligations and have suspended payment.
Source: newspapers

2. June 17, 1893 Other

Newspaper Excerpt: It is probable that Henry Allen & Co., the firm of bankers which went under through the National Cordage slump, will resume business next week. The firm sent out yesterday a circular to its creditors for their signatures to an agreement to accept 50 cents on the dollar.
Source: newspapers

Newspaper Articles (4)

1. May 4, 1893 Asheville Daily Citizen Asheville, NC

Article from Asheville Daily Citizen, May 4, 1893

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Article Text

EXCITED WALL STREET FAILURES COME NEAR TO CAUSING A PANIC. An Emormous Shrinkage in Some Stocks, Prices of Which Rally Later-Other Firms Dragged Down With Two Prominent Ones. WALL STREET, NEW YORK, May 4.11 a. m.-Shortly after the opening the market was thrown into a condition of panic by the announcement of the failure of Henry Allen & Co. and B. L. Smythe & Co. Liquidations were enormous, especially in such stocks as the firms were supposed to be in, and great excitement prevailed as block after block came on the market. After an enormous shrinkage in some stocks, sufficient buying orders appeared to rally prices. At 11 a. m. the market was still feverish. 12:45 p. m.-Scuyler Walden, stock exchange broker, has announced his suspension. NEW YORK, May 4.-Messrs. B. L. Smythe & Co., bankers and brokers of No. 51 Exchange place, have announced their inability to meet their pecuniary obligations and have suspended payment. The failure of Allen & Co., was announced this morning. The failure of G. R. Wilson, of No. 60 Broadway, is announced.

2. May 11, 1893 Warren Sheaf Warren, MN

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Article Text

THE EAST. A HEBREW named Moses Ballerstein, who died in Hartford, Conn., at the age of 75, had a pistol bullet imbedded in his brain for eighteen years. NEAR Wilbur, N. Y., August Wilman, a German workman, committed suicide by placing a dynamite cartridge in his mouth and exploding it with his teeth. His head was completely blown off. THE sudden death of James Willis Patterson, who was member of congress from 1863 to 1867 and United States senator from 1867 to 1873, occurred at his home in Hanover, N. H., aged 70 years. IN April 10,786 immigrants arrived in New York, against 5,006 in April, 1892, and 4,832 in April, 1891. A GREAT shrinkage on the New York stock exchange of the stock of the Cordage Trust company caused the firms of Schuyler Walden, Henry Allen & Co. and B. L. Smith & Co. to suspend and several other equally reputable firms were trembling on the verge of suspension. THE choice has been made of Rev. William Lawrence, of Boston, as bishop of Massachusetts to succeed the late Phillips Brook. THE legislature of Pennsylvania passed a law prohibiting political organizations from paying the naturalization expenses of foreign born citizens. CARLYLE W. HARRIS' application for executive elemency has been denied by Gov. Flower, of New York, and the murderer will be electrocuted at Sing Sing. OWING to domestic trouble Mrs. Fannie Korn, of New York, administered poison to her children-Edwin, 11 years old, and Florence, 6 years old, and then shot herself. THE death of William Wiants Thomas, custom house broker, occurred in New York. He was the only surviving delegate of New York to the national convention that nominated William H. Harrison in 1840 for president.

3. May 12, 1893 Shenandoah Herald Woodstock, VA

Article from Shenandoah Herald, May 12, 1893

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Article Text

THE NEWS EPITOMIZED. Eastern and Middle States. THE Spanish flagship, Infanta Isabel, with the Nueva Espana in her wake, steamed out of New York Harbor. These were the first of the visitors to go. MEMORIAL exercises for James G. Blaine were held in Boston, Mass. Senator Frye, of Maino, delivered the address THE Mary Hitchcock Memorial Hospital, erected by Hiram Hitchcock in memory of his wife, was dedicated at Hanover. N. H. THE Episcopal Convention at Boston chose Dean Lawrence, of Boston (the Broad Churchmen's candidate). as Bishop of the Diocese of Massachusetts to succeed Phillips Brooks. THERE was almost a panic in Wall street, New York City, The National Cordage Company decided to apply for a receiver when its stock was forced down to twenty ; Henry Allen & Co., B. L. Smath & Co., Schuyler Walden and other brokers and bankers were compelled to suspend. being dragged down by the Cordage people. Ex-UNITED STATES SENATOR JAMES H. PATTERSON died at his home in Hanover, N. H. He was born in 1823. GOVERNOR FLOWER, of New York. declined to interfere with the decision of the courts in the case of Carlyle W. Harris, the condemned murderer of his young wife, Helen Potts. THE stock market in Wall street, New York City, was saved from a wild panic by DrexelMorgan and Vanderbilt interests : S. V White suspended. and there were wild scenes on the Stock Exchange: other Wall street men could not meet their obligations. MRS. FANNIE WARING KORN. after giving poison to hertwo children. Edwin. eleven years old. and Fannie, six years old. shot them and then shot herself in her flat in New York City, The girl died.

4. June 17, 1893 New-York Tribune New York, NY

Article from New-York Tribune, June 17, 1893

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Article Text

# THE CORDAGE REORGANIZATION. A PRELIMINARY REPORT ON THE COMPANY'S CONDITION. Copies of the preliminary report of the convention of the National Cordage Company were circulated yesterday among certain banks interested in this company and among a number of operators in Wall Street. The report is signed by the members of the Reorganization Committee, George C. Magoun, Ernest Thalman and Gustav H. Gussler. The report is preliminary to the reorganization of the company. The report proposes the issuance of $6,000,000 of first mortgage collateral trust bonds, to run for thirty years at 6 per cent. Of this amount $5,000,000 is to be taken up immediately and $1,000,000 is to remain with the trustees subject to a two-thirds vote of the directors. This reserve is intended for use in paying off prior liens on the Union Mills. The capital of the reorganized company is to consist of $8,000,000 8 per cent cumulative preferred stock and $20,000,000 of common stock. This will start the company anew without any indebtedness and with a good working capital. The bonds are to be offered to the subscribers of the plan of reorganization at 85, less a commission of 5 per cent. The stockholders can take the bonds at 85 and the outside public at a price yet to be agreed upon, but not less than 85. The reorganized cordage company is to consist of some twenty companies, eight of which have come in under a long lease. The valuation of the plant has been put at $15,000,000, or about $1,500 a spindle. This is said to be a much lower valuation than was usually put upon it. Some of the new companies that have been taken into the reorganization scheme value their plants at from $3,500 to $6,000 a spindle. If the reorganization plan goes through it is probable that there will be a financial manager for the company, who will look out for the interests of those whose money will be put into it, leaving free those members of the company who are acquainted with the cordage business to manage that end of it. It is probable that Henry Allen & Co., the firm of bankers which went under through the National Cordage "slump," will resume business next week. The firm sent out yesterday a circular to its creditors for their signatures to an agreement to accept 50 cents on the dollar. There is little doubt that all of the creditors will sign this paper.