The New York herald., 1878-03-28
FINANCIAL DOWNFALLS.
FAILURE OF ISAAC hermann, THE DIAMOND
MERcHANr-orHER BANKBuprcY PROCEED

FAILURE OF ISAAC hermann, THE DIAMOND
MERcHANr-orHER BANKBuPrcY PROCEED
MOS.
Isaac Hermann, diamonds, ut No. 10 East Fifteenth
street and at No. 200 Fulton street, has gone into
voluntary bankruptcy before Register Dwight Mr.
Hermann, who has been in business for twenty-five
years, rated worth upward OF 500, 900 and had
excellent credit The announcement OF his bank
ruptcy yesterday caused great surprise, as IL was
totally unexpected. Mr.. Alexander blumenstie, his
attorney said that his misfortune was the result OF
the continued depreciation in diamonds and
the large expenses incidental to his busi.
The mmediate cause, however. was that
Mr. Hermann mad made an Arrangement with
Edward Sainger Tor the sale OF diamonds,
ana delivered TO him few days ago over 100000
worth OF tue gems TO be sold. and the proceeds re-
turned to MIN. Mr. saiinEer. VINO had u claim on q
balance OF account for s5,oo0 held the diamonds 10
compel tho payment Of the money due him; and, in
order 10 prevent MN having preference over tho
other credtorR ana TO prevent tho sacrifice Of his
assets which will pay all the creditors In uL went
into voluntary bankruptcy. An injunction has also
been granted restraining Mr.. Saiipger from making
any disposition or transfer OF the property held Ny
him.
TIE INDEBTEDNESS.
OF The entire indsDtednsss only about ST. 500 Is due
Tor merchandise. The borrowed money is 10 great
extent secured by properly, and is due 10 relatives
and friends. Mr. Bluuensiiel Iur,hcr said that the
assets were placed at very low figure and were more
thar enough 10 cover his Liabilities
According to the schedules nled It appears that the
liabilities are about $5ooOu The secured creditors
are Henry g. Begusiin. g. Barihold Meyer
4000; Collateral Loan Company Vt Boston, 81, 500
all tor money loaned; Mr.. vanderpoe So 600; Pecsre
family. IS, ,435 SO: Haunah BsurImo, So 500; Edward
saIIingsr, $4,000 Tho petitioner IN The schedules
states ihe latter debt was originally contracted
with Henry Beguelin and Isaac Bernstein, with whom
the security, consisting OF diamonds, were pledged as
collateral 10 the ioans and aiterward, on about March
IA, 1878. AS The petitoner ~ informed, Mr. salngcr
paid of SAID loan 10 tue ABOVE parties and
recsived the diamonds pledged as collateral, ana Is
therefore suhrogated 10 their rights the SAID
action; the original consideration Of the debt Is
money loaned upon which there was given no note
Among the unsecured creditors are The oliowi ng:-
Pacific Bank, 81, 900 on discounted note samuel j.
Levy. 81, 800 tor money loaned; N. Fox Co..
or money loaned; Isaac Bernstein 81. 800 Tor loans
and merchandise; Mrs. Henry Grinneii, S, 900 lor
money loancu; Edward SaIiinger, 50, 203 % due
ior the sale OF diamonds purchased joint
venture with the petitioner under contract writ
ing, aud unknown amount ID also due Tor his sh
OF the profs oil the sale Of SAID diamonds ger
tract.
The assets valued in the schedules at $55 857 So
Tucy consist OF interest In real estate In city,
Brooklyn, Long Branch ana P0ugnkeepsIe, $3, ,450;
machinery, tools and fixtures, vaue unknown, but
cost about So 632 6l endowment policy, So 900; BOOK
accounts, 900; otner trade nxtures $780, bill,
ST. 500; STOCK In trade, $33 1879 u.s. consisting OF da
monds, gold and precious stones Of this amount
petitioner states Edward Sallingsr holds In his posses
diamonds OF The value of $40 $50 o. the whole OF
which, excepting the amount rcaeemed by HIM from
Henry Begueln and Isaac Bernstein, he received from
the petitioner In March for the purpose OF selling
dspOsng o the same in regular course OF trade for the
petitioner, but none Of which, SO far petitioner
learn been sold or disposed Of but the ID
stil held by Mr. Sallnger l0r bohalt OF the petit
toner, and Mr. Salnger claims the right 70 hold SAID
properly order to compel the payment Of money
due him from petitioner 10 him, but which right the
petitioner disputes.