New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-06-02
To 1he surprise Of evssy one, however, lne n NV.
opered On the morning Of the "a ana ..s,ns,5c9.

sIs; ~ The Rank the only funds remaining cyns ~
ii N about Sc coo in special deposits WIN"
20 ,Se morning of the I'd Page, Bacon \ 70. con.
x-~,ad ;ndqment for s400, 900 to the iono"ns IT,,
'sobp Parrot, Henry M. Nagiee, >; +; De~T Nj
goro pave A. A. Richie, Eugene Mercy q VI; p..rv
teI Isese C. X Garrison, j. y. Wells, JOIN %;
r. l. a NJ Phean, Is. Holladny, hns,scy, Z, n,
He Woodworth g. Co., VIM. L. Iolein,eu. 81
Lowe Ebbcis q Co.. T. H. o9Ii p TTett Francis Pix
lev ~ g. H. II. Haight, VIM hrrington; "in, o.,a,
n.y. syT j. IT, Smiley, Haght 81 Wadsw91ih, sweeser'
on, = =. a. Co Arlington 81 Co., Beck N Eiam
IiuishLlgs Macon. Jr.; A. Simon, Is. X. Buckelew,
NJ Dow Geo II. HOssefross, Sullivan " Cnshrnan,
Holman 4 Dali, X. Mckee * Co., H. NJ Whitman,
VIM. H. Gladwin, Fernandez a. Peyton. These were
ne scners OF the bond for the guaranty OF the time
certificates.
Inserder to secure these parties the following prop
erty was as. well can learn, turned over 10
Nesus Parot and Nagee for the benefit OF the other
tesdsmen: The house and lot at the corner OF Cley
ard Montgomery-sts, valued at s5e,OoO;l the new
brick building ION leased land the corner OF Clay
and Montgomery SITS; $4,000 of b'ls receivable ane
$50 600 Of overdravn accounts.
From tie above rtsurat OF the proceedings since we
failure our readers may IN what poslhsA the anars
Of the house now stand
That the srun of Pare Bacea a. Co are bankrupt
no one pretends TO dosy-bankrupt IN the mai sense
of the word; but we would be metipg out bet poor
Justice to ourselves TIE community at large ed we
stop with the simpe announcement OF this fact we
wish to expos the manner as well or the cause OF neir
failure, and 10 ekllDl POSITION III WHICH vi
our rs. merchants have been placed by the operations
Of this establishment for the past few montas. We
will 90 tbs in &c few words as possible.
The intelligence of the first failure OF Page a. Bacon
came upon this community like IA clap OF thunder
clear day. II was wholly unexpected, except to me
members Of the house here WHO were far too prudent TO
give hint of any difficulties In the e asst People
could not imagine that banking institution re-
puted so wealthy, with such apparently abundant
means, with sucf show of money, coaM be bank
r,pt; and they absolutely refused 10 believe H. Even
al mood
after the managing partner OF the concern anounceu
that the house WAS gone into liquidation, the mer-
chants of San Francisco persisted IN believing that
nothing but return of public conhdence-now slight
y shakenwas necessary TO set Il IN compile operation
az ain. The partners here were certainly not adverse
to recommending business their old footing, and as
they had recovered from their extraordinary
panic encouraged their friends to come forward and
assist them.
The Shipping List then states that it expressed
doubts of the correctness of the statement of the con-
dton of the house put forth at the time Of the first
failure especially in the items of $780, in the hands
of ID. Hoadey, which was subject to the use of Mr.
Bacon and used to the extent of 100000, and Of
GOO in the hands of the ST. Louis house, which
was only in case of the solvency of that house.
At the time of the first failure called attention to
the items alluded to above, and expressed our doubts
of their correctness; but sllenced by the fol-
lowing statement, to which now wish to call par
tcuer attention. 1t is in the form OF letter to the
counsel of the house,
b. CROCKETT, EsqDear Sir In to inquiry
why we KEEP, so large balance IN we would ni1rn
kewYok about the of shipment ahead of ali orr
drafts reuTned neither would answer keep
If their money while the insurance was being collected
What hss the account however at present. larger than
usual the fact that we have been f some time past taking
large OF dras ts same o ton n low
Our credit such here that always deemed $500 go in
projected hi we had nothing 0 tote fear heIe 20
Yours tluiy, FACE, BAUM q Co.
The managing partner Of the house subsequently,
nearly month Observation-Disclosures TO the Edit
tors Of this paper that the $780, in question was not
RENTED for the purpose stated in this letter. but was
cent forward TO make strong show for the ST. LOUIS
house! At the same time we were assured thet tne
money could not be used by Page Bacon, as 1t be-
onged wholly to the firm here. The advlces by the
last steamer show that it 'cds used!
Page & Bacon's difficulties commenced early last
Summer In September or October last the house OF
Paee Bacon x Co. warned of their position,
and reouts,ed to oyer-remit at once the only means
of saving the parent house. The senior partner came
TO this country to effect this, and succeeded to the
| extent of ss60,OOO. The Managers here knew that
envy steamer which reached these shores since last
November might bring the of the failure OF the
! firm in ST. Louis and despite all this they went III
deliberately not only to oyerremit, but after theI
failure TO resume on borrowed credit, taking the oio
chance out of hundred that in doing they would
not involve their best friends III common ruin with
| themselves.
We now pass TO the consideration of the position Of
|
on the morning of the Cd inst. (which has been most
severely and most Justly condcmned) drained the
house Of all its cash assets. The parties therefore who
purchased par exchange the time certificate men, and
the purchasers of exchange since the resumption have
only TO look to the actual asses OF the house, winch,
exclusive Of the amount referred to above, amount 10
next to nothing, unless the property OF the senior meu
Der of the firm in St Louis be brought IN ana as 10
the present value Of that the greatest doubts are en-
tertained The bondsmen too have certainly legiti-
mate claim to be protected as they are bound IN
honor if not in law TO stand up to their agreement
although not in our OPINION until the private means OIL
| tbe mariners have been exhausted. As matters now
stand we may expect to not far from 81 900 900 re
turned to this city in protested drafts, while the
attempt collect the time certificates OF the house
must if successful, be attended by the ruin great
a truthful statement of the affairs OF Page Bacol
and Page, Bacon x Co. been made in the first place
, all this would have been avoided.
The position of the sgners OF the bond Is mos
equivoca The consideration expressed in the insru
ment is the issue by Page Bacon n Co., of certain
time certificates at the date of the signing of the in
strument hut SIS coo had been so issued The docu
ment too is so framed WHOLLY convinced with
out any intention the part of the signers TO avoid
responsibility that suit is almost impossible, inns
much as every certificate holder must be included il
, each suwhile a single party can release all. Ac
4 Acknowledging the best of motives on the part of the
bondsmen We must be allowed very seriously TO doub
whether the certificate holders obtain nything on
, their paper for long time TO come.
, Tie failure of the two largest Banking houses II
Cslfornis--ihat of Page, Bacon x Co., and Adams
Co. now complete and rrevoc able-may well call at
tenon 10 the way In which the banking business has
been conducted in this country. We md that the
heaviest business has been done here by establish
ments connected with large in the East and
in the of the houses mentioned above that con
'eetion proved their ruin. There can be no doub
Jlrst Page, Bacon Co in California were solvent un
| Ill uey commenced to assist the 81. Louis house
! Adams Co. were failed by the Encouragement o