New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-22
BANKING ENDED IN RUIN.
THE METHODS AND RESULTS OF A BANK
RIJPT HOUSE.

| RUPT HOUSE.
| THE sycuRITTEs or HENRY CLEws 4 90 or LITTLE
| VALUE AT PREsENT-PIASs OF cBEDrroRs-Tnh
CLAIMS on THE SECURED oREDiToRs-BfsroRr
| AND RELATIONS or TIKI OLD AND NEW FhA-
THE CONFIDENT CIRCULARS ISSUED.
The first meeting Of the creditors OF Henry
Uews h Co. will be beld on "Wednesday Feb Ta'
rncno, crsditors have been In anxious consultation
almost daily since Nov 49, 1914 the day on which tho
firm ware odIudgad TO be baDkrupts. 1t well under
stood By tho creditors that the securities OF tho M"
cannot be disposed OF at the present time except nv
great sacrifice With Wow TO project tbeh c'''o's
careful inquiry has made ~ TO the proba"c '~n'
of tho various bonds, stocks and mercan,'e pdp''
scrbed m the schedules Much difficulty has been 'ne'
Win IA msnv Of tho aeourties have market value
ana are not among tho regular quotations OF the sock
Board. $1,000.
Many OF the creditors believe that the bankrupt estate
can he settled by trustees to much better ADVANTAGE
than by an assignee In bsnkruptcr II Ia Thought tnas
the bonds and stocks OF the Burlington, Ceda h'pus
and Minnesota Railroad, which the bankrupt hrm hFu
TO tho amount Of several millions Of dollars, may become
valuable within reasonable time-1se wears, perhaps
n the road can DO run tho interest OF the crcd' ofs
1t IA believed that other securities now cohs1er'u
less by wise and prudent handling. may DO mace 10 70.
aIze something in the settlement OF claims aganS '"'
estate In order 10 accomplish the desired resbe pe
creditors are discussing the various plans proposed
their Ineetngs and II stated that thcre 10 growing
feeling among them IN favor Of taking action under DOC
| ton as OF the Bankrupt act by when 'he Pf"'o''
10 bankruptcy may DO superseded " %FanSe"e"'' N"'
| section ia as follows: -.
r' ss s fr st puppos and Which prsvou 10.
shall have been gVen for soe ssh OF us s o,s Whose Il u.
have been proved and re olive th.' Gs 90 led
be 1SuSd up and .,d made s~ous .hs ere o.
tors i .bI be sii or cer aud report such rs'o
ton Court nominate or more trustees 70
| and
II IA conceded on all sides that the present Vaue"
tho stocks OF the bankrupt firm held by secured crrd
itors Will protect them and therefore no margins
can be expected tho sales OF collateral seeurflest 70
Apply toward the payment OF the unsecured cieuoI'
The appointment OF trustee trustees acting whoU
In the interest OF the creditors and controlled ny theu'
1t cOnended. will materially Increase tho div'eou'
and greatly improve The value OF tho securities uo'u "
collateral by secured creditors and the s'"cA' anu o
assets remaining for those not secured.
| Tho old firm of Henry Clews & Co., composed OF
Henry Clews and Theodore 6. Fowler never recovered
from their failure Of Sept 49, 1873 They attempted"
continue by receiving special deposits IN trust
for new accounts aud issued circular, dated sept %
1873 in which they notify the correspondents ana ce
potOrs Of the firm OF their SUSPENSION aud ada the ion
lowing;
We now beg to announce that propose to continue
onr bu.ines, as hcr"tJore by receiving e,ia depis
ia trusts for accounts, pledged only 10 p1yllebis
drawn against such new accounts a,d that We snaa.
realize vpon loans. securities. aud other atsets as
fact possible and make pro rata as on 9
existing indebtedness shall be iqid"ted' interest DO
| ing paid as heretofore
on the 18th Of October another circular wa sent to
the creditors, marked "confiential." submitting sn
agreement in duplicate for years extension by the
creditors and signed on behalf Of the firm b. MI Cews
The firm made this statement In the confidential cir
| cVlar:
Since our suspension the sd nit. a careful cor
sderaton OF our with aylew 10 their ru1
4 fccncy II Judciousiy banded. TO meet al our api
ties has made aud the result Is that We nave no
doubt whatever OF our ability, with your further gen
cooperation, TO pay one hundred cents on tne uo
lar with all our liabilities OF every Alhu
Debts duo 10 US Mt tie tlme OF or SUSPENSION ar
which we can collect, settle or ao1 st more expedi
by assignees in bankruptcy shall be Lonoralv aad nm
partially held by trust for tho equal benefit OF al
| About two-thrds OF the creditors signed the agree
ment granting a twelve months extension, and on the
25th of firm announced IT, fact in smother
circular and made second appeal to those who had not
yet acquesced in the proposition. They also SAY, 1--WE
shall administer trust with Integrity and ZEAL con
vinced that interests can only be served BY
| making a settlement in full with you which at once
secures to us former credit and Influence IN the
financial world" final circular sent Dec. L. 1873.
being mainly copy of the preceding one.
On the organization OF the rm composed OF Henry
Clews and Ernest Zeider, circular dated Jan g. 1874
was sent to the creditors Of the old firm, ia which they
| say:
We take pleasure in announcing that we this day re-
business Presenting ourselves AGAIN pupllo
active business with facilities unimplired. WIN
the ability TO pay all our obligations IN fun, ana win
addition of members to our firm, We are defer
mined 10 regain our position, and TO boso tho
future growth Of business on ndcy 10 me INTERESTS
OF customers, devotion 10 all the trusts We may
receive, and Oh straightforward and liberal dealings
| with all.
About Oct l. 1874 the IL months extension granted By
the creditors expired. and the OF the 6rm went 20
| protest. Certain creditors commenced suits and Oh
tanned Judgments The Sheriff levied upon the prop
erty and on tie goth OF October Ciews Fowler made
an assignment OF all their property TO Frederick Taylor.
| connected with F. Butter6ed Co, New-YorR, tho
largest creditors. An order was then obtained from
Judge Lawrence putting the Sheriff IN possession OF me
offices, which order subsequently mOdnrd 10y Jidke
Daniels The assignee filed his bond on the I'm OF No
vember AFFIDAVIT required by judge Robinson OF
the Court OF Common Pleas in winch no states mat the
assets of the nrm will not exceed 100000 Tie affidavit
Ia the mater Of ASSIGNMENT Of Hsn:v Cew, and Theodore
cy ant County Of Sec' YORK. So Frs.enek Taylor merchant
doing business the oip Of Ne.iors a. No. 43G Bto"Hs
executed tn. 2Oh DAY Of October 1874 ana Vas 90 the
County that this ieponeut diligently eed
SION hea uuder ippI-peua proceedings Judgment against the
ssgnorr issued b. OaS Of tse JGs Of 'ae Ssp'ss
Poa named 6 h% IS' this ecpossa A me S SS.s yf
NeSYo who obedience the san order excluded dponen and
hi. clerks h.eOm and has Not since hm se. thereto That
without impossible TIE sreoor.. Of toe ...si.
iecon Of the @ order . BIZ Be-, S .S 10 e. ..
Judge the said estate Tue Transactions Of
the said have been extensive aud Their
To with -hco to eap on 'eeir oais' 'he
have PLEDGED al their y,a,Ge s o. p over nS .bsT.
toe the respective loans the i,ssnoIs o.. ne .seqes
present Dse ar. Of @ o debt due 1 .rs
Of which securities were petgel ea. ne Ieos se Az p
available they have alter The custom Of ~a.I Osss
lands Of their creditors " security for .acS oos rsc.i
bonds have into depHenF' possession a, 10
value Of the securities .ssnsd e him and win a ~. s .r