Los Angeles Daily Herald

He Cannot Settle With His Creditors.

WHO WERE HIS BACKERS?

Rosenfeld's Property Transferred to the Nevada Bank—The Market Perplexed.

Associated Press Dispatches to the HERALD.

San Francisco, August 27.—The announcement was made on the call board this morning that Dresbach & Rosenfeld, chief bull operators in wheat, could not keep their agreement with the shorts, and the board was at once adjourned. What effect this will have on the street is not yet known, but the announcement is accepted as a complete collapse of the bull syndicate in wheat.

THE CONSEQUENCES UNKNOWN.

The full significance of the crash will probably not be known for several days. While Rosenfeld & Dresbach were supposed to be operating for John W. Mackay, James C. Flood and other large stockholders of the Nevada Bank, the deals were all made in their name, and all contracts were made personally with them, without any additional guarantees.

PLENTY OF PROMISES.

When the corner broke, on August 3d, Dresbach & Rosenfeld agreed to pay the difference between $2.07 and $1.70 per cental, or 37 cents per cental, in four monthly payments. The first payment fell due on September 1st.

THEY SAID THEY COULD PAY.

The price of wheat fell steadily to $1.30, but the bull clique was expected to be able to carry its "big load," and the announcement was made two days ago that the first installment of money would be paid as agreed.

AN AWFUL SURPRISE.

The announcement to-day, therefore, that the two big brokers would repudiate their paper, was the last straw, and was accepted as a final surrender, and all the enormous losses, with the exception of possibly two million dollars advanced by the "Bull" clique early in the deal, are to fall upon brokers and others who had dealings with these two representatives of other people, whose identity has not yet been discovered.

NO FAILURES REPORTED.

There is considerable excitement on the street, but no failures have yet been recorded, and while many of the big houses have been hit very hard, the hope is expressed that they will be able to pull through. The feeling is very bitter among the dealers, and the entire deal is spoken of as one of the worst in the history of trade.

THEIR EFFORTS AT SETTLEMENT.

After returning the original deposit money of the buyers and sellers at a rate of $9 per ton on the 103,000 tons named in the agreement of August 3d, and which reduced margins from $2.15 per cental to $2.05, Dresbach and Rosenfeld had further margined down 40,000 tons to $1.70. They paid out large sums during the last few days, and to-day was the day when the balance fell due.

THE HOLDERS BADLY LEFT.

It would require about $400,000 to meet this part of the agreement and the inability of Dresbach & Rosenfeld to pay out any more money therefore leaves about 60,000 tons of wheat in the hands of holders, standing them in $2.05 per cental, which cannot be sold except at panic prices.

6000 TONS AS SECURITY.

Of the 10,000 tons of wheat placed by Dresbach & Rosenfeld in the hands of the directors of the Produce Exchange, as security for the fulfillment of the agreement of August 3rd, about 6000 tons now remain, the balance having been released as the margin money was returned.

A DROP IN THE BUCKET.

This 6000 tons could not be sold to-day at over $26 a ton, or $156,000, and that is all that the owners of the 60,000 tons, costing $205 per cental, or $1,230,000, have to secure them against loss.

BROKERS PERPLEXED.

The street is practically at sea regarding the outcome and few can be found to hazard an opinion as to the outcome. The fact is well settled that firms having unsettled contracts with Dresbach & Rosenfeld will have to bear the big losses growing out of the deal.

THE NEVADA BANK LINK.

This afternoon John Rosenfeld filed a deed transferring all his property to the Nevada Bank. This is supposed to prove the connection of that institution with the deal. Neither Mackay nor Flood could be seen at their offices to-day and it was not expected that they would make a statement in any event.

NO INFORMATION GIVEN.

Vice-President Brander of the Nevada Bank declined to make a statement of any kind.

ROSENFELD'S EXPLANATION.

John Rosenfeld in explanation of the decision reached by himself and Dresbach to not carry out their contract said: "We have paid out all the money we had and can get no more accommodation at the banks and have had to stop. That is all there is in it."

ENGLAND WILL BE BENEFITTED.

Some one will make a great deal of money out of this for those who have the coin—I mean the people of England—who will be able to pick up the wheat we are holding at a song. If we could have gained time we might have pulled through, but now all is over with us."