The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-05-26
A SERIES OF LARGE FAILURES
SUSPENSION OF TWELVE IIM-
BIER FIRMS.
Liabilities s0,OOO,OO0.

The Troy Times of Saturday evening
gives the following statement of the down
fall of great combination of lumber
dealers, involving liabilities of large
amount. Many of the parties are well
known here
The failure of White ~ Co. of Albany,
S. w. Barnard & Co., of New York, and
Orson Richards & Son of Sandy Hill
three of the most extensive lumber dealing
firms in the whole country-has been fol-
lowed by the suspension of Dodge e. Co. of
New York; Page ~ Co. of Oswego X.
W. Adams & Co. of New York c. b.
Nichols & Co. of Albany Wiliamsburgh
Mill and Lumber Company of Brooklyn
Charles & Co. of Cleveland Barton 81
Spencer of Elizabeth, n. j. II. ii. Love
hand of Chicago, and Watson a. Twitchell
of --. The list of failures, so sudden
in their occurrence embraces, as will
be seen, dealers in all sections of
the country, and is calculated to arouse the
liveliest apprehensions, Two years ago,
White & Co., Barnard e Co., and Richards
q Son, started an extensive combination
which embraced all the firms whose failure
has been reported and some Others which
are still reported good. This combination
controlled the lumber market of an entire
section of the country during the first year
of its existence, and was profitable to all
engaged. Last year business was dull, and
when the season closed all the firms en-
braced were more or less crippled. The
three principal firms extended their opera
tons greatly, and tied up too large pro-
portion of their funds in investments in
| timber lands. This expansion, together
4 Il
| last Fall, the late date at which it opened
this Spring, the stringency of the money
market, the inactivity of the lumber mar
l<et, and the shrinlage in value caused the
failures All the other concerns were
involved with the three principals, and
they have been obliged to follow
in the suspension. How many Others
are involved is more than can he
said at present. The liabilities of the firms,
the failure of which is reported, exceed
nine millions of dollars. Their assets arc
believed to be more than equal to their LA
bilities, but they happen to be tied up SC
that they are not Immediately available
The liabilities of each firm are not known
yet, but it is stated that those of White &
Co., Barnard a. Co. and Richards & Son
exceed one million of dollars for each firm
The assets of White are believed to be sutll
cient to meet all demands. The exhibit OF
Richards d Son shows that they can pay
all debts and have surplus of $500 900
Barnard Il Co. of New York have always
been supposed to be enormously wealthy
Their partners in the combination had ar.
thorized them to issue paper, for which al
members of the combination are Jointly
liable. Under this authorization they had
placed before suspending 100000 wortl
of paper in the market Some of this paper
has been negotiated at discount of twenty
per cent
The effect of these failures on the lumber
business of West Troy cannot now be told
A feeling of distrust and apprehension pre-
walls on Ill sides and it Is reported that two
or thrca houses must go under, These re
ports may not be true, and it would be in
judicious to specifically designate then
now. 1t is hoped that they will surviv,
the storm and come out all right. Tho
Troy banks hold some paper of the suspen
ded firms, but not enough to cause thu
slightest alarm Two or three of TIN
banks procured list of the failures from
the Times Office this morning and imme
diately commenced overhauling their book
to ascertain the relations in which the,
stand to the suspended firms. The re
search furnished, as before remarked, n,
ground for apprehension. 1t is reporte,
that some of the firms involved in this ep
idemic of failures cali, if time will DO al
lowed, continue business and meet all dc
mands. 1t is hoped for the general goo
that some arrangements of the nature indi
Gated will be made.