New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1856-04-21
BARNUM AND THE JEROME COMPANY.

To The Editor Of The " Y. Tribune
SIR: Az you have at various times favored your
readers with notices in regard to the affairs Of the
Jerome Clock Company, and Of its connection with
Mr. Bsrnum not few of which notices contain insInu-
atoms and charges of fraud you will not be unwilling
think to publish this bref history OF the relation
between the parties alluded to.
About the first of June last the jerome Company
received letter from Mr.. Barrum proposing union
of the business and interests OF the Jerome Clock
Company and the Terry and Barnum Clock Company,
urging, with many arguments the advantages which
would accrue to both companies if such an arrange
men. could be effected.
The Jerome Company asked for information in re-
gard to the affairs and condition of the Terry Bar
mum Company, and were furnished by Mr. Barnum
with memorandum stating the value OF their prop
erty real and personal and the amount Of the ndeb-
ednees Of the Company. MIR. Barnum was aiIeaoy
indorser and guarantee for the Terry IL Barnum Com
pany TO the amount OF 100000 and over which he
volunteered 10 continue for the benefit and IN favor OF
the jerome Company; also to increase tue amount 10
$4,000 without security Inc Jerome Op0mPany
were to take the property ofthe IeHy ~ Barnum
Company and TO continue its business in Bridgeport
also to assume and pay its indebtedness
The ONLY inquiry made by Mr.. Barnum during the
negotiation, in regard to the affairs OF the Jorqule
Company was whether the stock of the Company had
ever been cold at less than its par value lie was
answered that it had not, which was the truth. The
arrangement for the union Of the two companies was
completed about the middle OF June.
By the time the jerome Company had obtained
Inducements to said amount of $4,000 they ascer-
tanned that the Indebtedness OF the Terry Barnum
Company was some $50, 900 larger than the amount
named in the memorandum furnished by Mr.. Barnum
Mr. b. was made acquainted with this discovery. and
be could not and did not refuse to increase h liability
to cover this additional amount. 1t was found neees-
sary to ask of him further assistance the extreme dull
ness of trace during the year rendering 1t impossible
10 realize but little from sales Of goods.
Mr. Barnum willing to increase his Endorsements
TO such extent might seem necessary, II reasona-
bic amount of security could be given him.
He was secured to the amount OF $4,000 with
property costing and worth that sum, with which he
was satisfied. BY the LIST Of December the amount OF
Endorsements had increased to its maximum, some
s45OOOO.
Mr. Barnum cannot charge fraud against any agent
of the jerome Company. lie is mistaken in saying
that he generally indorsed the paper In blank only d
small part of the whole amount was so indorsed, and
that in regard to time but not as to amount.
The jerome Company fully and honestly believed
that their property had cost them and was worth
Sls7 OOO as was stated 10 Mr.. Barnum about the time
the security was given him. That 1t was not worth
that sum at the time of the failure is not strange II We
remember that about $4,000 worth Of the capital stock
was swept away by the Terry and Banum arrangement
that some $50 900 or 500 900 paid TO noteshayers
during the past year, and that an equal or larger
amount of debts ard accouns-considered good year
ago-are now counted nothing. Sacrifices conse-
queut upon an assignment will sweep away large
part of the remainder.
The whole connexion has been most unfortunate for
both parties.
MI Barpum's name did not add to the credit OF the
Jerome Company, and the union Of the two Com
panes added largely the indebtedness of the Jerome
Company.
Certainly it was very unfortunate for Mr.. Barnum
for during the FIVE or six months relationship the or-
nary and former indebtedness of the Company was
paid by funds realized upon paper Endorsed or accepted
by him.. ,-,,,s
not have noticed any of the numerous exaggerated
and false rumorIn regard to their affairs but as in
situations and imputatlons of fraud have appeared in
your own and other public Journals they ask the PRIV
ever. during a course of business amounting to many
millions, defrauded any man or men of single
dnIIar S. b. JEROME.
Anil A