The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-29

OF the business OF the company was transacted.
WHAT THE WAREHOUSE COMPANY WAS
The Commercial Warehouse Company OF New
York was organized in 1867, and was Incorporated
by special act OF the Legislature under the
Presidency OF William ID. Bowerman, with capt.
tai OF $lO00,00O, which was aferward increased
to $2ooo,OOo IN 1872. Mr. Jose F. Navarro was the
Vice President and James Cline the Secretary.
The company possessed sixteen granite ware
houses, situated on tie Atlantic Docks, Brooklyn,
equal TO thirty-two ordinary warehouses. These
houses were originally constructed oy the United
States government and were purchased from it
by the company. Their estimated value Is
$750,000. For the nrst few years the company did
STRICTLY LEGITIMATE WAREHOUSE BUSINESS.
confning itself 10 receiving merchandise on sior-
age and to making advances ON goods In their own
warehouses. According 20 the terms OF the char
ter, the company was authorized to do q banking
business, and 1t generally advanced money on
good security. Success in both OF these depart
ments was the prime cause OF the doubling OF the
capital OF the company in 1872, at which time was
established commercial department Ior the pur-
pose OF making advances on consignments from all
parts OF the world. especially from CuDa and
Mexico. II Is authoritauvely denied that the COM
pany speculated In securities on Its owA account.
But during the past year Cuban matters have
gone badly. The company had lent large sums OF
money on the expected crops, which, In conse-
quence OF the rain, failed, and the insurgents
have been burning and destroying plantations In
which tho Commercial Warehouse Company was
interested. While large portion OF this money
is undoubtedly good it was not Immediately
reahzable.
! WHAT THE OFFICERS SAY.
HERALD reporter called at the ofnces OF the
| nrm yesterday afternoon. The Vice Pre- sident
said that he was quite willing to tell everything
he knew that would be OF interest 20 the public.
The cause OF the failure he ascrIbedto the impos-
sbility In these times OF depression to realize
on securities. For some time past the
! company had been finding money constantly
| going out and none coming in. 1t had lent
largely on consiGnmcnts OF Cuban sugar which
were wholly insured by nrst liens on the estates,
but the crop turned out comparative failure In
that district. These facts had become fully crcu-
lated and further tended to iDiure the credit OF the
company. Under these circu instances, and as q
matter OF justice TO those who were unaware or
the facts, it was thought advisable TO suspend for
| the present for the sake OF all concerned. Pre-
| vious to the suspension, however, q meeting OF
the Board OF Directors was called, and 1t was
deemed advisable, In view OF the uncertainty OF
the early collection OF their advances in Cuba, to
suspend payment until there could be obtained
from the commercial department an intelligent
estimate OF It's condition. This department was
wholly separate from the banking department.
| The head OF the commercial department.
had been absent on account OF illness for several
days, and consequently It was not possible to OBJ
! tain the information which the banking depart
ment required. The bills payable amount to
about 1896. 900, the balance OF the Indebtedness
being upon letters OF credit and foreign balances
used In the ordinary business OF the commercial
department. drawn through Cuba upon London.
the total liabilities OF The company, although
rumor has anticipated US and placed It &C
$4,000, 900. In regard to a full statement of the
afIairs OF the company, they hope to be able to
present to the creditors in o Few DAYS such q bal
ance sheet as would satisfy them that an extern
sion Of time will be for the good OF all concerned.
INTERVIEW WITH PRESIDENT ARMOUR.
Last evening q HERALD reporter called upon
Mr. Paul J. Armour. the President OF the company,
who was found ABSORBED in accounts and encir-
cleo by q cloud OF smoke. When the reporter
stated that he had come 10 CLEAN further particu-
lars respecting the suspension OF the company,
Mr. Armour said My dear sir, have been IA
vored with the visits OF about fifty interviewers
to-day, but will do my best 10 answer your ques-
lions. First, have just written letter to the
HERALD respecting the 100000 worth of prop
erty we have in our warehouses, and on which we
have no nenn The President then handed the
reporter the following letter.
PRESIDENT ARMoUR's LETTER
COMMERCIAL WAREHOUSE COMPANY
OF NEW YORK, No. 20 WILLIAM STREET
NEW YORK. July 2S, 1875.
To THE EDITOR OF THE HERALD:-
Inasmuch as the merchandise stored in our
warehouses amounts to over $4,000 600, II Is per-
haps proper to state that the suspension OF the
the value Or security OF the warehouse receipts
issued by the company for goods stored In our
warehouses. PAUL ]. ARMOUR, President.
WILLIAM TOBIN, Superln tendent.
After ne had handed the reporter the letter
President Armour continued:-"We might have
carried on business unnterruptedly for several
months, but We thought it proper TO lay our
aars before our creditors, that, after delibera
ton, they should decide whether the COM
pany should 90 on or not Our paper
has until to-day stood Al. cannot tell you the
amount OF sugar, &c, on which we have liens,
now deposited in our warehouses. When our
statement is ready we shall know It's exact value.
We believe that II we are granted an extension
we can pay dollar for dollar. Our STOCK is
81 DOC, 900, OF which $1,5OO,Ooo is held in
Cuba. New York Will be seriously affected by the
suspension. We have
TELEGRAPHED NEWS OF THE SUSPENSION .
to Havana. We have at least fifty correspondents
in Havana, all leading men. meeting OF our
creditors will be held in few days In this city.
The date mas not been fixed, but It viii
probably be held this week-perhaps on Satur-
day, after we have got our statement from the
commercial department. Another loss we have
sustained Is in sugar houses here falling 70 pay
rent on the produce they deposited with US.
within fortnight we expect to receive by vessels
now loading in Cuba or on their way here, about
$4,000 worth of sugar. Our bills payable here
are very small Our troubles come not from our
banking put our commercial department. Some
accsptances upon US will, doubtless, be
protested at Havana, while overdrafts we,
OF course. VIII naturally repudlate.
gentleman said to me to-day, Your temporary
embarrassments VIII not affect my dealing with
your company, ana shall continue to use your
warehouses as before. This gentleman has 10000
casks OF sugar stored with us, worth 81, 900 900.
Our main Indebtedness Is through advances on
cuban sugar. We admit nothing into our ware
houses except bonded goods. Our full stan OF
nnn rirr h,nra ~ ant 81