New-York tribune., 1872-12-04
A COMM EKCIAL DISASTER

H IFRoM THE REGULAR CORRESPONDENT 0P THE TRIBUNE
\ LONDON, Nov. 1S.-The proceedings at the
meeting Saturday OF the creditors OF Bowles Brothers
CO. afe well calculated to relieve the appreben
sons Of those who have found tho failure Will turn out
bad Mr.. Keith, the manager OF the London house
ormerly believe. partner in the Boston firm OF But
4 Ter, Keith HID and Nj. Robert Bowles seem to have
known little OF the actual condition Of the house,
whole and s less Of .that part Of the business which
I Mr. Charles Bowles took into his own hands.
Mr. Keths managership indeed, appears to have been
only sort OF head clcrkshp. for Mr. Robert BOwles
states that Mr. Charles Bowles had exclusively managed
all the banking part OF the London business The
penon was Occasioned by the refusal Of the Union
4 Bank with which Bowles Brothers kept account,
10 pay any more drafts or make any more advances.
When Mr. Robert Bowes went TO ask why, he was told
thai n was not In consequence OF the deficiency about
$500 in their cash account but because OF the depreca
4 ton OF the securities held by the bank.
"Why we have no securities here" exclaimed Mr..
! Robert Bowes. uhereupon he was shown the book in
which the securities deposited by his firm had been
( made IL might have been supposed that BowleS
Brothers books, TO which Mr.. Robert Bo"les and
Mr. Keith must have had access. would have contained
corresponding entries but it does not appear whether
( that is the
Questions were put on behalf OF Mr. Neale of the
creditors, by the amount OF nearly soOeO
deposited with Bowes Brothers for safe keep
ing and which alleged had been hypothecated to
the Union Bank without Mr. Neae's knowledge or con
sent 1t stated by tho same creditor that the hrm
hesde converting these bDnd had neglected TO take up
Of Nashville shares which they had undertaken to
do. On these matters information could be elicited
from Mr.. Robert Bowles who said that he had no wish
to conceal anything but he had nothing to tell because
he had the management only OF the readngroom and
similar matters at the bank.
Mr. Keith however appears TO have been better in
formed OF what went on and there be no complaint
lfa finrp
pcit enough This the OF Mrs. Mara Gate5, in
whose behalf an inquiry put as 10 what had become
OF $500 OF L. s. bonds int,ted to tho care OF Messr
Bowlcs Brothers, whose receipts she held Mr.. Keith
said-I quote the words OF the report before me-"he
presumed they were in the Union Bank; they were
/ taken there without Mrs. Gates'5 permission"
No money had been advanced to Mrs. Gates upon them
and the bank had claim her; they left with
Messrs. Bowles simply to be taken of; but by Mr.
Bowless direction everything placed in the Union
Bank, and from time to time as money was required
loans obtained upon the securities thus deposited
Transactions a considerable amount had taken place
between Bowles Brothers and T. S. Morgan Co., all Of
which appear be subsequent the Sd of October last
at any rate, Mr. Robert Bowles states tnat 1t not
till that day that anything due to Messrs. Morgan,
yet since then about $2j)O had been paid them through
the NewYork house Tie amount thus paid he described
having been realized from moneys received by Messrs
Bowlcs in NewYork and Boston letters OF credit, but
y
| at the meeting
1t is not stated how Mr.. Bowles knew none Of them
were present at the meeting l am inclined 10 think
one Of them An American gentleman who arrived
in London last paid into Messrs. Bowless New
York just before sailing the OF 800 in gold
taking letter the European houses Of the same firm
for He reached London only to learn that
his letter wasfOr the moment, at any ratewOrthess
The case seems pretty strong one This gentleman
was believe. present at the meeting Saturday, aud
will have the satisfaction OF proving his claim at the
proper time. The decision reached by the meeting was
appoint committee investigate the affairs Of the
lrm, and 10 take such action as they shall deem dt.
There can be no doubt that the failure OF the Messr
Bowes has occasioned a great deal OF inconvenience
n and even distress TO American travellers in Europe
4 Business men had long known that the house was at
tempting too much and that the expenses of its various
branches OF proportion to its capital and the
amount OF s regular transactions. One such man, who
had considerable with the firm, drew it out two
years ago, simply because he oresaw the crash that
must follow the system pursued.
But tic general public knew nothing Of all this They
knew simply that Bowles Brothers and the Joint Ma
tona Agency (which the same firm under another
name) saved them great deal Of trouble that they
only bankers but exprcssmen and postmasers
and commission AGENTS and that. in a word you could
get ANYTHING yol wanted done by that house. Their
Offices always contained Directory Of all the American
travellers in Europe Other bankers offered similar IA
ces but the difference between this and other houses
was that in them banking was the main thing aud
other services we're done incidentally while with Bowles
Brothers the banking less prominent than the ex
4 press business
Their houses at London Paris and Geneva were GER
ainly most convenient rendezvous for Americans 1t
may perhaps he said that they supplied want Ameri
can travellers Europe being gregauous and their hap
piness being largely dependent meeting other Amer
cans Messs Bowes understood this rather more fully
than other bankers, or perhaps they found 1t better
worth their while 10 supply large reading rooms, well
stocked with American and European newspapers, and
to make people feel that they welcome, and feel
sure they could nd out what they wanted to know and
be advised what shops visit what routes take and
so
All the leterofcred bankers do this, but not such
scale Bowles Brothers did IT, and here think is the
secret Of the popularity OF their house. for popular 1t un
doubleday was People found that they paid very large
prices for services OF this kind but large as they were
the actual amount in each case was not very great
though tho aggregate must have made very pretty sum
Il for the firm.
n Then when Mr.. Appleton OF Boston induced TO
become n special partner the 'credit OF the firm was
much improved Mr.. Appleton put in, it is said 100000
which he can well enough afford 70 lose no doubt. But
hear report that attempt will be made TO hold
him as n general partner which might prove serious
matter n successful II hardly be supposed that
Mr. Appleton has left the door open for such mistake
as that.
The immediate Inconvenience TO travellers to which
referred above has been In great part relieved by the
action Of other bankers Travellers who were provided
with credits on Bowles Brothers, and who suddenly
heard last week in remote quarter Of Europe that
their drafts were worthless not in an envable po
siton They might able to check for half million in
NewYork or Boston Though don't think the men with
balances Of that their banks generally Gus
toners OF tho MeSsrs. B0wes, and not be ab at the
moment TO pay their hotel bills.
In many such cases, am told, the other American
houses have freely advanced what necessary TO