The New York herald., 1873-10-03
A DRY GOODS FAILURE.

Suspension OF the Oldest Importing
House in the City-Stntemcnt of the
Firm-The Effect OF tho Past Panic ON
the Dry Goods Trade.
The announcement that Patton Co., OF NO. 341
Broadway, the oldest dry goods importers IN the
city OF New York, had suspended payments created
quite sensation IN Wall street and in commercial
circles yesterday morning. The failure was the
sole topic OF discussion among the employees In
the large dry goods houses along Broadway.
HERALD reporter called at the Broadway house
yesterday afternoon, and was introduced to MIR.
Agneau, a member OF the firm. In reply to the
question as to whether the report that the firm
had really suspended was really true Mr.. Agneau
replied:-
ayes, it Is, unfortunately true that we have
been obliged to suspend payments temporarily.n
.sMight I ask what was the cause9" continued
the reporter.
'.Well, the remote cause.n replied Mr.. Agneau,
sswas OF course the tightness OF the money market
and this unfortunate panic which rendered 1t i'm
possible for us to get money to meet our engage
ments.n
"Was there any special cause which compelled
you to suspend Just now?"
Eyes; we were not able to negotiate our bills
receivable from our customers on the street or in
the banks"
"You know our customers pay US for our goods
in drafts which are endorsed by US. These we
were not able to negotiate; yet, strange to say,
the banks have always preferred to take those
bills receivable from dry goods houses rather than
bonds-railroad bonds. for instance"
What was the difficulty In your case, then ?"
asked the reporter.
''Our bills were spread over a very large area.
We have been endeavoring to have these bills ne
gotated for some weeks back, but to no avail, ana
in the end we thought 1t better to suspend tenn
porarily until this crisis In the money market had
passed away. However, as you see, our house is
open to-day. We are selling goods and we are
standing our suspension. We have had letters OF
sympathy from all over the country"
II understood that your house was purely an I'M
porting house, and that your difficulty arose from
your inability to meet your impost duties and
..No; we have bought in this market also, and
houses to whom we owe as much as $4,000 have
offered to continue sales to US until the difficulty
Is tded Over.n
'.Now, might I ask, what, In your opinion, will
be the general effect OF the past panic the dry
goods trade generally ~ asked the reporter.
''Well, OF course you cannot argue rom the sus-
piled Mr.. Agneau very frankly. ''Our business
amounted to about $4,500, 600 yearly or course
the suspension OF such business would not argue
any weakness in such houses as A. t. stewart,
Jafrray a Co. and others, whose business amounts
yearly to between $20,000,000 and $4,000, COO
However, do not well see how small houses in
the dry goods trade can stand 1t eventually
The eject on them must be pretty serious before
we are through with this In my opnon.v
The house OF Patton Co. was open Tor business,
and nobody would imagine that they had tenn
porarily suspended payments.
In reply to q question from the reporter MI.
Agneau stated that the house OF Patton Co. was
the oldest importing house in the city and was
established In 1884,