New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-18
PHELPS'S OPERATIONS IN THIS CITY
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The notification of the statement in ycstcr-
day, TRIBUNE that f. Il. sherwn & Co., according to
their own admission, had had something to do with
cashinc drafts for Phelps, the Albany defauter, has
drawn attention the business and record OF the hr
Brief mention was made IN yesterdays TRIBUNE OF
Dry goods enterprise Of SherwIn Co. in this city, III
which an attempt made to maintain dry goods
palace IN UniOH-square in the building formerly known
MaisOn DOre This enterprise which WAS begun in
the Fall of 1867 or 1865 lasted about month. 1t would
have had little longer life than that. probably, had
it not been for miscalcnation with regard
70 the day when the firm would get possession OF
the store on Unon-sQuare. They had been promised
possession lst Of August but failed to get IT, and
were unable 10 open their store until about the 1st Of
November Meantime they had made their purchases
during the Summer, mostly short credit expecting
that ther cash receipts would sufficient enable
them TO meet their paper when became due. But the
delay IN opening their chances OF success,
and when their creditors the splendid surroundings
OF the dry goods store and calculated their cost they
made haste TO demand payment as soon as the paper
matured They swept il after another upon the
new firm with such rapidly that Sherwin
a. Co. were obliged 10 close their dooS abb
rupty Some OF the creditors got their goods back.
The partner OF sherwn in this enterprise and the per
who understood TO furnish the capital not
dry goods man, but liquor dealer They claimed 10
have capital OF 100000 their creditors have
able find It, Previous to starting this enterprise
f. X. sherwin a dry-GOOds merchant IN Milwaukee,
Wis He opened business in that city III 1865 and
tnued till the Summer OF 1867, when he sold and
came to tins city. Prior to his gong to Milwaukee he
was IN business in Northampton, Mass This in
1862 and is as far back TRIBUNE reporter was able
to trace bis record yesterday.
Union Adams President of the Eighth National Bank.
which Is st IN the hands OF the receiver, was ques-
toned yesterday bya reporter OF THE TRIBUNE In re-
he hetv t,a han
f. f. Sherwn. The first transaction took place after
the bank into the possession Of the Maison Dore
property Fourteenth-st sherwin then about 10
start the dry goods business and leased that prop
ery. when he failed the lease given up but tine
bank lost nothing He also opened account with the
bank for a short time but closed it by Withdrawing
his balance. He had the notes Of Boston firm dis
counted while depositOr, which were promptly paid
Al maturity These the only relations he ever bad
with the bank Of which did he become ebtor
The following advertisement has been one Of the
features Of the advertising columns in the newspapers
for the past few days;
DANKING-HOU of F. X. SHERWIN g.
With paired facilities invite accounts subject
49, Az fpng according 70 or usual plan ioT mos. vino
desire limited r'ss KIpao''Ory crSalI' on 1Bi,.oa
The "syndicates referred TO of a comparatively
recent date in wallst. operations. About the time Of
the panic on Vienna Bourse, OF the details OF
their mode Of business reached number OF irresponsible
people here consisting principally OF broken down stock
specuators, lame ducks and brokera' clerks. They
formed several Ike sherwins and boldly adver
tised them as bankers and brokers making specially
vienna ,syndicates." This system. explained
lev attractive circulars. designed TO cause a
revolution IN the business, inasmueh as
IL was practically guarantee against loss They in
yed every one their syndcates and share their
nrohts They explained that these syndicates were
,inply combinations Of spectators OF limited
who desired limited rsks, as so invest small OF
money and receive great reward. The plan was
20 have each speculstor or subscriber contribute
from $50 UPWARD in speculation In given stock say
western Union Lake Shore, Erie, or Newfork Central
The control OF the stock given TO "smart opera
to, o.neraly OF the firm Of syndicate bankers" and
ne wa. TO manipulate 1t for the general "beneht"
there WAS a profit the subscribers were to share II
pro rata minus commissions, but II there was a
loss they were not to suffer beyond the amount OF their
Investments When they applied for their profits they
were usually informed that the market had gone the
wrong way and instead OF profit there was loss Inc
matter became 40 glazing that when conscientious
broker Broadst was asked concerning the operations
oil AN eX-eerk Of This who had become Nienn" s'"u'
ban - h. nj