The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-07-24
PILED DOWN BY TAPPAN.
,yru rORK DIETING COMPINr ron
,OyJNg THE ONE IN BOSTON.

r.,,an'. AFFINITY to Fay Every DoiInr.
AFR John II. Checvcr, Treasurer and gen
i manager OF the New York Betting Com
", arrived in this city from Boston ycsler-
~ ~ and ns soon as he reached tho company's
o. AZ Park row. gave orders that no notes
sn,ld be uaid and no goods received on credit.
s,hs same time he gave informal notice to the
'.,1uors that the company had temporarily
'aa.ncnded. He explained that the failure was
sn.,o the embarrnssmcnts Of the Boston Belt
,"scompuny. which suspended on Monday be-
"a If the operations Of John q. Tappan. its
Lite Treasurer.
certainly we are mixed up with the Boston
p.sne Company" said Mr.. Cheevcr; but
han YOU ask me to what amount you ask mo
ora than can at present tell. We don't know
sor we stand nor shall We know until after the
counts have been made up. have decided
emil meeting Of tho creditors. but have not
i.clded as to the date We may be hurt pretty
sadlv but hope we shall be able to pull
Mr,ueh. The business has boon profitable
ons and our stock hns beon held ina few hands
,.ure proof that 1t was worth holding. Wedid
large business with tho Boston Betting Com
nanv and our embarrassment Is entirely duo
- The dedication OF its Treasurer. | am the
heaviest loser. individually. in our company. US
Iowned $50 shares Of the Boston Betting Com
rany's stock
Mr. Cheeyer could not be brought TO fix even
an approximate figure for the liabilities. al
noush he acknowledged that they were large.
Be refused also to explain the exact relations
be,ween the companies. He told a personal
friend however. that Tappan's defalcation had
est him Mr. Cheeverl $500 900 personally.
ala. tan. N 20,
usht showing that the business relations Of tho
ompanics were very close. This was the re.
ordIng Of Il chattel mortgage on the merchnn-
disc in the New York Betting Company's store
house in favor Of q. A. Alden. member Of the
Committee appointed in Boston on Monday TO
Investigate the condition OF the Boston Betting
Company. A further indication is that the chief
officers OF the New York company-Henry F.
Durant. President. and John II. Chcever, Treas
urer-own respectively 800 and 500 shares OF
stock in the Boston company. The Secretary.
Henry Redneld. does not appear to be II stock
holder.
The New York Betting Company was incor-
porated In 1866. succeeding the Goodyear Rub
Der and Packing Company. Its capital was
800 900 at FIRST but has since been increased to
$500 900 Ithas extensive works at Sandy Hook.
Conn.,. and employs many workmen. The
company owned most Of the famous Goodyear
patents. and was successful from the start. Mr..
John II. Cheever has been its Treasurer for
twenty years or more. and until very recently
the company has been rated very high. 1t
sought no credit. did its business on conserv-
alive basis. and when It contracted liabilities
met them promptly. But Of late Mr.. Cheever,
the principal man OF the concern. has involved
himself somewhat deeply in speculation al
though 1t is not known that he and Mr.. THppan
we're engaged In the same enterprises. In 1871
be was one OF the owners of the New York
Steam Engine Company. In which he lost con-
siderable money; and since that time his specu-
The two companies hold each others paper
largely.
Another corporation involved in trouble. II
the commercial agency Of McRiop. Spragne X
Co. Of 100 Worth street. of which John q; Tap
pan is President. II Is asserted positiv.ly that
Of 1.-THE 1900 .0On msapprOpriated by Mr.. THppan
from the Boston Betting Company. nearly
100000 went 10 bolster up the Mckillop 4
sprngue 60. The latter company wns started.
In a humble way. in 1855 by John Mckillop ST.
who had previously been a trusted and active
employees Of Dun, Barlow \ Co. Later on he
was icined by John q. Tsppan and John
sprague. and the business WAS run under a
firm name until 1872. Then the company was
Incorporated with capital OF 500 900. OF
which $4,000 was in property necessary, for
me business and $1,000 in cash. In 1873 the
liabilities were sj5.OU0; in 1874, $4,000; IN
1875. s13 900: and in 1877. $4,000 Since 1870
the company has made no statements. In this
year Tappan and Sprague. represented 10 have
been then las the latter 10 now. probably the
wealthiest men in the company. ceased 10 bo
trustees. The four trustees for 1877 wore John
McKillop, Francis Hart. Lester NJ. Clark, and
Albert Palmer. Mr.. Hart died IN 1877, and tho
;rr three trustees are men OF small means;
Sprague Is attributed 10 the fact that under the
law trustees OF corporations falling Ia make
regular reports arc held personally responsible
for the liabilities OF their companies.
At about the time the reports ceased tho Nc
kiOp& Sprague Company began expanding its
business at m nous rate. They had two great
result was that they had to establish branches
In places whore they never could be made to
pay. Thus the profits made in the large cities
were eaten up in tho smaller ones. hnd Mr..
Tappan. who was largely Interested la the com
pany was called upon 70 make further al.
,mnces to help 1t along. He had firm belief
thus led to make advances that his estate could
" afford. II is said that Mr. Tappan advanced
Ne money that represented the Indebtedness OF
1878. 1874. 1875. and 1876. and that since he
$500. 900.
A meeting was called for the 10th OF January.
pany from sl00. 900 to $500. 600 but the scheme
iel through. Three weeks ago. when the
troubles Of Mr. Tappan were coming upon him.
another meeting was called and the Increase
Was made. 1t Is believed that Mr.. Tappan took
mis- extra stock in payment, or part payment.
ol MS advances, rs t4lo,OOD OF the STOCK Appears
n the schedule Of his property turned over to
me Boston creditors.
Business was carried on as usual in the
hckillop X Spragne Company's offices yester-
day. Mr.. Lester NJ. Clark the manager was in
Boston. and his assistant. Mr.. John Turnbull.
said he knew nothing Of tho cOmpanys iinan-
elal condition. Whether II can stand the shock
Of the ruin Of PR. Tappan. who has been f9r
years the backbone OF the concern. depends
upon the ability and willingness OF the other
stockholders to risk their money in an enter
prise where he sunk so much OF his Al far as
is known there is only one stakeholder strong
enough TO give II substantial backing. and he IL
known To he close and cautious.
BOSTON; Jnl y 23.-John G.; Tappan was found
surprise at the assertions made by some OF his
nnIslhess associates yesterday. but declined ~
EiN1 speclne details OF them. He denied that
nIs inplnti.s or rather those incurred by him
On tne crelt OF the Boston Betting Company.
WIZ W. ~ where near $500 600. and said that he
creditors. Finally he declared that the ability
OF the boston Beltlng Company had not been
lmpeacned ana that us affairs were az clear as
nose Of any concern in the State
The banks OF this city hold the following
smounts OF notes slgiind 10y the Boston Betting
bors or endOrsers
Bank Of Commerce. $4,000; Revere. .2G 900
Old Boston, $1,000; Massachusetts t10 000
Eagle. $4,000: Union. 100000 Hamilton 900
900: North. $4,000: Suffolk. 800 900: Market
$4,000: Atlas. $4,000; Freeman's. t30G0O;
New England Trust Company, ti0oOO; Com,
monwealth, tl5 900: Mechanics 100000; IRE.
mont $40 900; and Maverick. 5000
, Ihe following are Out-Of-tOwn banks holding
The paper: Bunker Hill. CharlestOwn district
t13Oq0 Monument. Charlestown district. So