New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-06-04
CAUSEs OF THE EMBARRASSMENT.

The principal topic of conversation among
metal brokers' Yesterday was the suspension OF Herman
Lssberger OF No 257 Pearst with liabilities OF from
two millions and half to three millions. Herman Lss-
berger Is seventyfye years OF age, who was IN
business iron and metal broker OF No I'D Pearl
st. for number OF years, but about 1869 or 1870 re-
tired Five years ago he rented the extensive premises
at No 257 PeaIst and began again in the same trade
under his own name. but the business has been man
aged throughout by his son. Lazarus Ltssberger, VINO
held power OF attorney, and generally considered to
be the real principal Just before this business was
started tho son was partner Of the firm Of Holmes
Lissberger which lost two million dollars bulng
copper and mad its affairs thrown into bankruptcy.
The present house, under the management OF this
Lazarus, during the last few years has done worry
large business principally in scrap AMI railroad ron
most of which imported. 1t was stated yesterday
that he has had many thirty ships coming In In ono
week. and that mis- yearly business amounted TO between
| five and SIX million dollars. Since last November he
las h?nded less than no. 900 tons Of irOn most OF
which was purchased in England when prices were eigh
When iron began to 90 down many persons who had
entered into contracts with him broke them upOrAE0me
precxt other and the material thrown upon his
hands, It was clear that nothing could be done in the
present state OF the market acting upon the advice
OF his friends and creditors, he, OH Wednesday, an
nOunccd q temporary suspension and appointed his
son-naw, Bernard Schultz president OF tie New-YOrk
| Refining and Smelling Company, rs his assignee. Mr.
LssEcrger owned the controlling interest In tins COM
! pany, but 1t Is said that his suspension will in
way affect Il: His creditors mostly bankers, who
have made advances and allowed his credits ana they
said be well secured There small creditors,
and the Indebtedness IN the trade Is small. 1t Is also
stated that the indebtedness abroad Is comparatively
smailas all the iron imported purchased on bankers
credits. Tho merchandise now In possession OF Mr.
Ishcrgrr. or his assignee, actually pledged with the
bankers. ani If they hold IT, and the market improves
| they may possible realize their advances
Mr.. L4sb";grr said to 4 tribune reporter yesterday
~ Stoppaec r. simply account Of the immense drop
in also count Of yariOus persons trying To
back CUT, ana actually backing ont OF contracts Oh
various prctC went for very heavily last
Fallfcrci:n iron. pig rall, scrap all sorts In all
| probably bought about 140,OOO tons more. Since
that time iron has drprcclttd Since February, for in
stance, has gone down $40; some S13 some
| $40 per ton. | Lad n very large stock and
have had market fer the last two or thee months
Urrr these CIRCUMSTANCES felt that II safest
| TusiucSs VIII stint up again between Eow and next
| Fd aud in the meantime can protect what have
! for ih" benefit ~ all con, crned.
9TH" liabilities between two and three millions
secured 10y mrrc,Hndst. OF the bankers might
lose money ~ present II theT forced thrlr securities
INTO the market bat don't think they VIII do that and
| otherwise they ptobrbly Will Ny creditors have
hnr tha VII he able TO hold on uitl! there is better
market think the market viii crop AGAIN IN n few
III nths. and then shaii start again with favorable
" was speaking about how some OF my customers
broke their contracts. Two OF tEcm who had large
nrlc;s dti 40 mere technically. Tnr gO@da
to BE- supplied by carly Spring shipment This
understood 10 b. January, February ana March;
| they, on the contrary, claim that IL referred
only TIA" first tw" months and rs the goods were not
shipped until March. they req nda'c the contract bad
"A LnDrr contracts for rails, both steel IN iron, tor
tie ", A. winch was supplying from England This
was English rns superior, cheaper.
b ,l,c all the mills III this country were fun OF
! ord T."
y rnhard Schultz the assignee. said cannot state
psvry what the liabilities aIc and II VIII take
ttGtC weeks tUreach thc bottom ~ the concern but.
on Il rough guess, should judge the lblltb here and
on The side amount 10 from two and half to three
| nj lions. IrlnnOtsaY how much Of that uiCbtelncss
hrune tn TIE other side. But think II II pretty much
covered by stock For instance, he has stock here.
IN rr,l~ IN this cry, IN Brooklyn, IN IObOkcn, N
Jrr y CIV In phlddephia IN Elliimcrc. ont West. and
IA rnir-r transportation. | suppose that he
hny" handled moro IRON than anybody In the trade.
Let November h. has purchased 100 O00ions
Ot lrnn aiOn", and have II" htu his bu n ssl0S
afnu.htr 10 IN five 10 six million dollars year lie
hnH suid tremendous stock. uni should estimate
that he 6rrlur N tie market yau' O hls merchants
GuIiu; the llsi tWO months fn!lv one mlUn and
Lf D! dollars. They ali large creditors und there
| aye snni debts Of any kEd."
- WI mention "a few al tho creditors I"
cannot do that, because have proiis Il them To
Lcrp The matter sCrrt. To publish tErr nHn' would
mufc their business TGerc creditor, for Instance.
! " nl n.., a cnlm OF ovrr hat Il mi O: ILg kp'ye iSr
This pension l. ONLY Temporary The creditor" IN
favor stock being he'd nntll t!C Fl, &ad dealers
also ~ tant 10 tone" laIec quantity "f material
mo toe market would upset pIi, fOt long
line believe shall be- able IL hold H. and then Il
Will depend great deal IN" state 0f TIE market next
Fall he yainr Of the assets lJry could not posi-
| bly, be estimated now"