The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-02-15
FoUsE AND HERsCHBERGER IN JAIL.
Money Nisnppiicd that had been Collected for
New Y ork Merchants.

Levi g. Fousc and Henry b. Herschberger,
Of the Mercantile Agency and collection firm of
Fousc. Herschborger 4 Co.. at 39i Broadway
arc in Ludlow street Jail in default OF II 900
bail on two charges that they have applied to
their own use the proceeds of claims placed in
their hands for collection. The principal aflI-
dnvit against them. which II a sample Of many
similar complaints, Is by Louis Sedenbach. of
the firm OF Siedenbach. Schwab x Co. Of OIL
Broadway who swears that on the first Of Octo-
her last his firm placed in the hands OF Fouse,
Herschbereer 4 Co. claim for s1.0757l
for collection from Christie & Thayer Of
Augusta. Ga; that in November. Fouse.
IIerschbergcr 4 Co. paid $3.50 on account
of that claim. and In January sG0 more ON ac-
count. but that nothing further has been re-
ccivcd. and that Fousc. Herschberger Co..
whenever called upon to pay the remainder.
have said that nothing more could be collected
without procuring judgment against Thnyer
Il Co.. which could be done about the sth OF
January last Mr.. Siedonbach called after the
sth Of January and Fouse told him that they
had not heard from the claim. and. a few days
after that. Fouse. Hcrschberger < Go. made an
assignment 10 Mr.. SnndcrsOn for the benefit Of
their creditors. day or two after thnt assign
ment. one Of Fousc. llcrschbcrger Co. g agents
said that no information could be obtained with
regard to the claim. Mr. Siedenbach then wrote
IL Harper Brothers Of Augusta. Ga.. the
agents Of Fousc. IIerschbergcr x Co.. who had
charge of collecting the claim. and received an
answer that ut the time Fouse Herrchbergcr
reported that they had not heard from the lain
they had in fact IT that very time received the
entire sum Of l.OIj.7l. Mr.. Siedenbach there
fore swcnrs that Fouse 4 lIerschberger have
collected his firms money and applied II to their
MIR. Schwab swenrs that when the agent came
around trying to gCt compromise IN favor OF
| Fouse IIrrs hbcrgcr Co. for Twenty-Five cents
on the dollar he saw the list of their iabil tiles
| stated at S2J 900. which the agent admitted was
money that had been collected in thu. same way
| and not paid over but retained by Fouse.
Hers hbcrser Co.
| way is that Of A, DE Grief Co. OF 4s7
! Broomc street. who gQt only 5000 out OF
same application was made to them to settle
| for % cents ON The dollar, but they refused:
Another ,hrm similarly situated is that Of
| vino intimate their intention 10 mike further
complaints. Hirsrhkind. Parker Co. hive
broadway has lost slVs Among the unfor.
tunntcs are RaynQrN Wemple OF Nesey street.
| VINO lost $500 and II is said that there are many
| others who will come forward and make like
charges.
The suits SO, far are all civil suits, and the
| prisoners are held hcenuse they are non res j.
! lnu,s nnJ runnot furnish the requisite. hnil of
! 81 900. The other partner. MI. Hnring. is
understood to have been for some time IN Jer-
Fousr and Hers 'hberl,rr were found in Lud-
low street Iail last evening. They united In
saying tlh tllry were &c NJ u pIpsp rOuS nusi
ness until in November last their rivals in busl-
| ness. Dun. Barlow Co.. made an onslaught
upon them. and injured their business TO such
AN extent that they were finally compelled a.
| MAKE an MSS ignment that without this enmity
they would haV" prOspcr"d and paid all then
| Indebtedness: that owing 10 unjust charg,
| against them persons who had coutem plated
| putting capital into their business had been
| discouraged. and others vino had subscribed
had Withdrawn from the u.srnry. ard
| that finally they were Obliged To- make
| an inroid upon collection money which thr)
| knew t. hp u very serious thing. They prot 81
| however that they did NOT moan To- do any dis
| honest act. and that the collection money wen
| into the business and WAS used to help defrnN
| their heavy expenses Of 81 300 or & 500 prl
week. They point IL the aniaNits OF iOrty-~N
merchants ~ 10 the efficiency OF their ngenc,
| business. and attribute al or most Of their mis-
fortunes 10 Dun. Barlow Go.
Ii may be rccollcetcd that Dan. Barlow 4 Co
seized book published los them. which they
charged was the main source OF Information
upon which the mercantile agency OF fouse
| Herschbergcr Co. WAS founded.