Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-09-16
SUSPENSION 4 BANKING HOUSE
H. f.. OH v 4 Co. Make an Assign.
menf WIS at is known and Said
About the Failure.

passed The banking mousse Oh III. 4. UDloE u
Co, on the corner of 18th street and Pennsyl-
yania avenue had the opportunity to read the
following card posted on the glass door of the
entrance:
WASHINGTON, Sept. Is, 1873.
We find 1t necessary for the benefit of all
concerned that we should suspend and make
an assignment, which We have executed this
morning"
HISTORY OF THE HOUSE
The firm of Ell. Z. oftiey < Co was started
about three and half years ago. 1t was com
posed OF H. E. Offiey (formerly chief clerk of
the Navy department and his brother There
was was at the tlme 1t started a rumOr that ex-
secretary RObeSOn was a beneficiary in its
profits, but il is not thought he had any cap.
ltal invested, though he may have aided the
new enterprise by, giving it such navy bust
ness as ne could throw into lis way. More re-
Gently the firm was cOmpOsed-np to the hour
OF eiosing-of II. E. Ofliey and R. e. Hewitt. OF
this city.
THE BUSINESS IT DID.
The bank never did much Of deposit bust
ness. lis principal feature was to shave nOres,
speculate in stocks, and buy and sell District
OF Columbia securities. II is known that when
the bill to provide form of government for
the District of Columbia was pending. last
winter, the bank carried heavy margins on
3t5 District bonds. They bought when these
securities ranged at IS TO 70, and, pending &C
ton on the bill, the securities advanced to s.
and Sd, through which, it is alleged, they made
considerable money. Emb0ldened by. the sue,
cess of the enterprise, the firm again invested
largely, but, unfortunately for them, the bonds
did not rise, but steadily fell.
THE DISTRICT 365's.
1t is known that II. E. Otitey & Co have done
everything they could to have the Secretary
of The Treasury place the bonds on the public
debt statement, believing that if this was done,
the bonds would have been considered by the
public q national security, and their value en-
HANGED. Only day or two ago letter from
the firm to the Secretary of the Treasury
called forth statement from the I. s. Treas
dot limo no mint of y
outstanding, which was intended to OFFSET an
Unfair ard unjust opinion recently made by
the Attorney General OF the state of New
bonds down, and from which tkey have not
since recovered.
IRE HEAD OF TIE HOUSE AND THE ASSIGNEE
Early this morning, between eight and nine
O'Clock, II. E. OfiIey, the head of the firm,
came TO the city IN a car of the Washington
and Georgetown Railroad Company. He was
IN deep and earnest conversation with Carter
MarDury, esq, OF Georgetown, d lawyer, to
whom he is related by marriage, and to whom.
Il is said, he has executed the assignment. In
the car was Mr.. Greene, the popular book,
The usual salutatioDS of the day with him ana
engaged briefly in conversation with him, bat
did not indicate that he contemplated a sus
and passed into his bank. and Immediately
wrote the notice hereinbefore given and
went away. ,Marbury kept on in the car. and
near the City Hall. Hewitt, the other partner
OF the firm, was not about the place of bust
ness.
NO EFFECT ON OTHER BANKS.
From the best information attainable in
banking circles, it is not believed that the fail
ure VIII have any erect on any other of the
E. Oflley & Co. could never have been classed
as bankers, but rather as brokers. If any one
with money wanted to buy gold or stocks on a
margin. the firm would act as brokers for
them. charging a commission. They did not
have any deposit account worth speaking of.
The loss, therefore, whatever it may be, will
fall principally on the individual members of
the firm.
CAUSE OF THE FAILURE.
1t is believed, as before stated, that their in
ves sim. OF their own means in 365 bonds led
bought large amounts of the District securi-
tles on margin, at prices varying from 81 to
81 -, The bonds are quoted at 794 this morning.
The probability is that that price was below
the margin they bought at, and the firm was
called upon by their agents in New York for
settlement they could not meet. Hence they
concluded TO put up the shutters.
WHAT THE SPECIAL PARTNER SAYS
X. Z. Hewitt, the special partner of the firm,
came to the banking house at u 80 o'clock. He
did not succeed. For some time he remained
around the bank. and then passed on up 18th
street. 10 representative OF the STAR, he
declared that he had no idea that the bank in
tended 10 close its doors; that he was merely
special partner; that he originally put in
$4,000 ana subsequently, $1,000 more. He said
that be did not know where Ohey was and
was not advised of any intention on his part
10 suspend.
GENERAL KErcHAM's DENIAL.
Meeting Gen. ketcham, the STAR repreSen-
tatlOn indicated to him that the rumOr was
atioat that he was interested with Of1iey in his
3-65 bond investments. This Gen. Ketcham
stoutly denied. He declared that he never
with the suspended firm; that he did not even
know who composed it that he never Specu.
lated in any manner in District securities, and
did not own single dollar of them.
NOBODY SEEMS TO KNOW HOW THEY WORK
The most careful inquiry failed TO get at
even an approximation of the bank liabilities
and assets. Hewitt declares he don't know
partner, and left the details of the manage
ment OF the affairs solely to Ofiey.
DEsPONDENT DEPOsITORS.
one lady read the notice on the bank this
with It. contractor it IS said raised ip UPON
deed of trust on Saturday 100 and deposited
it with the firm. He drew on Saturday $500.
in and wrote his check for the SIX huadred sd
ditlOnal. Oh1ey at that time had not arrived
and the contractor was requested to cali
again. When he came the second time Offiey
had arrived, but the doors were shut. The
United States will lose no money, for what
business the firm heretofore did on account OF
the Navy department has long since been
taken from them.
THEIR LAST EFFORT.
III. f. Ofltey 4 Co., after Treasurer Gillian
had replied to their letter of inquiry concern
ing the District IS bonds, by giving only the
laws and the plain facts in regard to them,
without expressing any opinion as to whether
they were government securities or not, APP
piled to Secretary Sherman. The Secretary
made answer only that he endorsed the letter
written by the Treasurer on the subject.
TWO ASSIGNEES
The aSSlgneeS of the firm are j Carter Mar
bury and Sol G. Henkle, both Well-knOwn
lawyers in this city. at half-past one O'Clock
MT Maroury came to the bank. and was ad
mltled Dy a clerk through the side entrance
Marbury stated that the assignees would soon
prepare a statement for the public but at the
present time he had no idea of the liabilities
or assets of the bank; that it was a new bust
ness to him; and that he would have to 90
over the accounts of the firm to ascertain how
they stood, after which the public would be
given an account OF the affairs of the concern
He says the failure is attributable to the facr
that the bank invested largely in 1865 District
of Columbia bonds, which have deprecated in
value and wiped out the margin at which thew
had bought. He does not think the deposits
of the bank were large.
MISCELLANEOUS RUMORS.
There are good many idle rumors afioat
that the failure will involve other banks This
seems to be absolutely grOundleSS, inasmuch
as the business which Off1ey conducted being
more that of broker than banker, the bust
ness transactions between the Ofiiey firm and
the other banks was hardly worth mentioning.
ONE OF OFFLEY's CLERKS
made the statement to-day that r. G. Hewitt,
the special partner, had promised to put into
the firm SIS GOO, but that he had never fulfilled