New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-07-29
AGREAT LOAN CoMPANY's COLLAPSE.

TIE COMMERCIAL WAREHOUSE CoMPANY's uABL-
HES 81 800, 0O0-Irs ASSETS LAhGE, But NOT
AVAHABLE-AN fXT"NsIoN OF II OR is
MONTHS ASKED FOR.
The first shock which nervous Wall Street received
after the opening of business yesterday was the
announcement without preamble or warning, of the
suspension of the Commercial Warehouse Company
of this city. The effect of this, noticed above,
was temporary depression in stocks but the furry
and excitement passed away when it was
found that the suspension was not serious and that
il was the first step toward liquidation of the last
of the several loan companies authorized few
years ago under special charters to loan money at
the legal interest and commission 1t was soon
sscertaned that the liabilities of the house amounted
u about 81 100000 and that the assets aggregated
about 81 .OOO, 900, but these were not immediately
available
The Company organized in 1867 under
special charter with capital Of -, 100000. Paul
=. Armour, Jose +. Navarro, Thomas Murphy, and
.ames Clyne were at one time large stockholders
but most of the stock was held III Cuba The Com
pany did large and profitable loan business under
it, special charter until short time ago, when de-
tsion Of the Court If Appeals to the effect that the
charging of commission Illegal and the charter
unconstitutional compelled the Company to change
the character of it's business. Numbers of persons 10
whom it had loaned money brought suit under the
decision of the Court of Appeals and recovered pin
eipal and interest which they had paid
The managers of the Company, in looking round
for investments were induced TO make large adj
vanccs on sugar crops III the West Indies princi-
pally in Cuba they had advanced very large sums
upon growing crops the gathering of which the
early rains delayed, and thus the advances were
locked UP until next year. The amount thus lost
temporarily is estimated at from to two millions.
As consequence Of this embarrassment and the
change in the nature of the business the credit of
Che Company was greatly impaired and almost all
the d. positors withdrew. Last week an exainna-
ton of the affairs convinced the managers that it
would be wise TO suspend and 20 into liquidation,
and this conclusion announced yesterday. The
Company will make soon a statement Of It's affairs,
AID ak its creditors for an extension of time.
jose +. Navarro, Nloe-Presdent of the Company,
stated yesterday that the suspension was in no
consequence of the failure of Messrs. Duncan,
Sherman Co. The Company Lad no operations i'll
common with that finn, nor indeed had the Com
pany induged in any spccuai0ns further than adj
vances on sugar. The liabilities would not, he
thought exceed 81 100000, and the assets would
In time realize fully $I,0O0000. Personally Mr.
Navarro was not a heavy loser by the suspension.
His interest iii the stock of the Company was not
large and he had no doubt that when the concern
Was hnaly closed there would be something left for
the stockholders In contrad ctiOn of "a report that
the Company lad made largo advances to the Ma
varrO Water Meter Company, Mr.. Navarro stated
that there had been such advances and the stock
or materials of the Meter Company would not be
found among the assets Of the Warehouse Company.
James Clyne. Secretary Of the Company. made the
following statement:
II Is impossible for us to tell al present anything
l.sf. lul.tI In
make statement IL might be so far either above or
i"ioW Tie true figures, that We think II much the
best not 10 say anything about the matter until
enethlng more definite is known. There are goods
Aid bills on the way and until they heard from
y VIII be Impossible TO know how we stand. The
ialnre Of Duncan, Sherman d Co., however had
nothing whatever 10 do with our suspension; we
we're In no way interested together. Our
nope Is In getting extension of either
q Or IS months, and if this can be
a0ne believe shall be able TO come out all right
Anyway, our debts are in Havana, where nearly all
Of our stoekholdersJve and the failure cannot ma
tnally injure New-York merchants. We have COM
paratively no liabilities here.
a meeting Of the New-York directors Of the Com