New-York tribune., 1879-05-08
AN OLD FIRMS SUSPENSION.
THE LIABILITIES ABOUT A MILLION.


OF THE TROUBLE.
Notice was given yesterday by Whittemore Peet,
Post & Co., one of the oldest firms in the dry goods
and woollen commission trade in the city, that ID
unable to meet its obligations. The liabilities,
it is estimated, Will not exceed 81 900.
and are distributed principally in this city
and Providence. The firm lost heavily in
the panic of 1873, but the main causes Of tho
present embarrassment said to be shrinkage in
the value of wooens and the withdrawal Of special
capital. The firms paper is held largely by New
York banks, the Fourth National, of which Mr.
Whittemore is a director, having $4,000.
SURPRISE TO TIE TRADE.
A SKETCH OF THE HISTORY OF THE FIRM-LossEs
AND WITHDRAWAL OF CAPITAL LEAD TO EM-
BARRAssMENT-THE LARGEST HOLDER THE
FIRMS PAPER THE FOURTH NATIONAL BANK OF
THIS CITY-A TALK WITH YOUNG MIR. WHITE
MORE
WhittemOre, Peet Post g. Co., the we'll
known commission merchants in dry goods and wOoens
Nos. 346 and 34s Broadway. announced yesterday
morning that they unable TO meet their obliga-
tons The news Of the suspension did much
excitement In the dry goods district ia this
city. as most OF the creditors Eastern and
New-YOrk banks and Eastern mills which supplied
the firm with goods. Tho amount OF the liabilities
yariOusly estimated from 100000 10 Sl,G00O00, but
persons well Informed damed that the total indebted
ness would not exceed the latter sum- The members OF
the firm declared that the business In such condi-
tion that they give estimate either Of
their assets or liabilities.
The history of the firm presents a record OF marked
business prosperity which eliminated IN heavy losses
during s73 year the paLic The losses sustained
at that weakened the rm and these, with the sub
sequeut withdrawal OF large amount Of special capt.
tai form principal II the present suspension.
In 1867 the present style of the firm assumed, but
the partners then were somewhat different. Az that
time there special capital Of 100000 but In 1873
@ change was made in the firm, aud the special
capital was reduced $500 900, and again In January
1870 it was stu further reduced TO S250OOO Henry
L. Dyer represents all the special capital 10 the
amount OF 100000. The general partners have
not changed during the twelve years OF tile hrms
existence II was stated that the general capital
at first did exceed 100000 In 1871 the general
capital was estimated 100000, which was aferward
increased. In former years the firm was ranked very
higb owing largely to the Of the special partners,
John f. Slater Henry l.. Dyer and Earl p Mason. Since
the recent reduction of the special capital there have
been many inquiries 10 the amount OF the
firms general capital 1t being yarously estimated from
100000 to S1O00OO0.
Several merchants in the trade es mate their interests
as follows Whttemore, S125,O00; Peet s25,OO0i
Post 500 coo aud special 800 ,OO0-making total
of $3.50 900. Other merchants claim that the total
capital does not exceed quarter OF Million part
of Posts large interests 1t stated,was probably
borrowed from Mrs Post who is the daughter OF the
! late Mr. Anthony, of the firm OF Anthony 4 Hail.
In 1873 the firm became involved with wOollen mill
by which it lost very heavily II is thought that the mill
was the TscOnc aud that the loss sustained was nearly
Sl7OOOO During the year 1t suffered materially
| tbroueh the failure Of ]. Wilcox Co and other frms
Confidence I'm the firm shaken until the begin.
ming of the present year I'm the East who held
large quantity OF its acceptances made inquiries To-
MneR sympathy was expressed yesterday IN tho
trade for the disastrous failure Of firm which was
once prosperous During the last four months tho
firm has tried TO reduce liabilities, and expected 10 be
able TO settle difficulties. The hank accounts we're
principally with the Metropolitan, Hanover and Fourtl
and Ninth National Banks, but IL was thought that not
than the usual discounts were owed TO any ot
these institutions Mr. whlttemore Is director in tno
Fourth National Bank. Some OF the hIms paper was
accepted at the Broadway Bank until the reduction ot
the capital made known. Very little OF the paper
is now In that Dank.
A TALK WITH THE JUNIOR PARTNER.
Horace Whittemore the senior partner Is over sixty
years old, and resides large mansion about mile
from the ferry Astoria. he has been in the dry
goods trade in this city for over forty yeaIs. when
called upon last night Lie sent message by one
of his sons that no too unwCl 10 talk
over the suspension The who Is also connected
with the firm said that the reports OF the liabilities had
been greatly exaggerated, and while he could not give
ANYTHING ike exact figures he felt confident that In no
avon, yyould they exceed 81 100000. "They are
DIVIDED" he added. between Providence and New
York with scarcely any III boston m0 ong tba fns Ss
sTspenson occurred on Wednesday and that n was
matter Of general surprise The causes ne atlpaled 20
tions. The finn mad not yet taken any legal
ssaP bocn reached about future action. He thOught
that II given time the present embarrasSmens could pe
brllged over bu il forced TO an assignment ne sald
The rm would protect IN every way tie interests OF us
creditors.
HISTORY OF TIE FIRMS TROUBLES.
A wcl-knOwn bank president OF this city said last
night: The firm has been considered weak financially
for some time Like all others st-eI in the woolen
trade il has suffered severely fTom snrinkage, and 10
WAS compelled take control Ot Two or more woolen
mills TO secure debts. In January partner withdrew
taking out $50 900 Of the capital since then It's credit
has been impaired and freely yOercd paper has been
renaetedly dccliued by Wall-sr. banks. This morning
word the banks that The n:'n had gwen DO
tice 10 banks pay Its notes acceptahces The
nrm Informed Tue oanKs "LCm ft are "s 70 'ant
ali liabilities This would be true provided the
assets could oil be realized upon but every one knows
that factory which does not pay ~ not apt 70 bring
ANYTHING like ITS value at forced sale Inc urn mas
few OF It's own notes olt, most OF the liabilities
consisting OF accepaHces. These are drafts ortwn
ou the firm y ar its actOres ana accepted ny
the tirm iu reality making firm IN iebLedGeSs Well
informed mixers to-day placed the Liabilities ~ ess tban
q 600 600 II thought by close collection os
outstanding bills. SoUd sa.c OF tne htoeA On
ru could probably pay between 70 cents ana 30 cents
on the dollar. A rs could learn to-day ~ conver-
saton with bankers most Of the firms iaper II held by
uuon banks, such as the Fourth National, Importers
ana Traders, Aueric TX hange, Hanover ana Metro
pOltau, with. perhaps, one or two others
JgmS Baeli president Of the porters' aad Traders
Bank whcn Is si.d 90 be one Of the larGCSs holders Of
10 S',,,. name, utd 10 converse Oh The subject.
phi" q r'iffun pre -idept 81 the Fourth Sational
Bank gst last evening that Mr.. Wnttcmore was d.
rector IN tho iontt hauonA ana tosl ,hc htm @ nal
holds about Gl2O,OO0Og its business paper, Eyen on
sales goods auj t GOOD he believed Tor al least 10
per cent 81 the face value.
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