New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-06-05

IATIoNs IN IRON AND RAILwAYs-LTABlIITIFs
OVER TWO MILLIONS-BANKs THE GREATEST
SUFFERERS.
Another heavy suspension in the iron trade was
reported sterday, Charles W. Scofeld, heavy
operator in iron during last Fall, having sus-
pended payment. His liabilities are estimated at
over So, OOO. 900, half of which sum Is secured by
merchandise. He claims to have $2O0O,OOO IN
vested in Western railroads. and that, If time Is
allowed, he will be able to pay all claims in full.
RESULTS OF TOO HEAVY SPECULATIONS.
The heavy decline in the price of iron is
stated as the cause OF another heavy failure i'll the
trade the suspension Of Charles ". Schofeld OF No
115 Broadway, being announced yesterday after noon
with liabilities Of 100000. Tie sus-
pension actually took place weeks ago, but was
only brought light by the announcement OF the Liss
berger failure which appeared in THE TRIBUNE OF yes
terday. Mr.. schOAeld was formerly IN the hardware
trade but started to take contracts for the Navy some
years ago. and ultimately devoted his attention to
specuatiOns In IRON He ono OF tho first TO take
advantage OF the the iron market last FAIL and
in few months cleared over 100000. With
this he increased his purchases, and when the
market began to 20 down 1t found him with large
stock on hand
He began making heavy purchases early as June
or July last and kept at 1t until February During that
period he bought about 600 tons OF new rails iron
and steel For the steel rails he paid from S62 to S65
ton and for the iron $49 to 500 ton. The rails
were mainly from England. He also engaged In rail-
road speculation extent, and is now president
of two Utah lnes-the Utah and Pleasant valley anu
the Wabash and Jordan Valley These lines were con-
sructed on credit He ndorsed the paper OF the rail-
road companies borrowed money for the construction
and gave the bonds Of the companies as collateral or
the total liabilities half is account OF these lines ana
half upon his trade in iron. The creditors
| IN both cases are bankers, most Of whom
4 oI,or, 1fua Inv
| lnes or by other property Mr., Schoheld owned the
Plymouth Rock steamer until May l, when he sold to
company Of which he the president. He Is also
| president Of the Pittsburg Chain Company He has
appointed assignee but believes he will be able II an
extension of time granted to HIM, to pay all claims in
full.
A TRIBUNE reporter called upon Mr.. Scho1ed last
night at his house. No 10 Montaguest., Brooklyn He
spoke freely in regard to his AFFAIRS and seemed to be
hopeful that Le would come to amicable arrange
nent with his creditors
YOur failure suppose, caused by the decline IN
iron Z" asked the reporter.
Yes. was known to be dealing largely IN iron, and
therefore, owing to the shape the iron market TOOK
could no longer get credit. Then found myself unable
to carry several contracts had made to supply
manufacturers with irOn simply because could not
get the money to make the purcl ,sesso had to stop
But my business is not in iron simply, but in railroads.
am connected with two thr Q railroads out West.
These are new roads and built principally on credit Wo
used the securities Of these roads, tho stock and bonds
to obtain credit and president Of tho roads, am re-
sponsbe for the debts contracted was the individual
indorser Of the companies paper. My credit being
Impaired through the decline in iron, had OF course
to stop negotiations for these roads Icoud no longer
raise money. The claims began to press upon me, ana
for three weeks have been quietly getting an extension
OF time from the important OF my creditors but
this smashup Of Lssberger has TO some extent upset
| my arrangements.
~ have not made any assignment do not intend to
do So but If the creditors force Inc into assignment
OF course cannot helpi do not think they Will do
this Some largest creditors
| are always the easiest deal with-have already
granted me extensions OF time, and some OF the smaller
| creditors. suppose, shall have to pay OIL"
| 1" What are your assets" $1,000
| 10000 OF new iron, and what 1t Will cahzc OF
eOdrs We cannot tell place that ut one million ana
"Do you think that yom Will be aIle sell the iron at
no; am not so sanGuine all that believe the
market will improve but mot to that extent The iron
| Will have to be sold at "a loss"
"What are the railroad securities worth ~
"Well. il they were forced on the market now they
viii ultimately become paying concerns, and get The
| extension Of time need can pay of every arhng"
do you estimate your interest III the Plymouth Rock
and the Pittsburg Chain Company in yodr asscts1"i
"oh yes; butt Plymouth Rock viii run 1r all the
he continued. will be on the iron l dou't estimate
Why, England and all world have been shipping iron
over nero as fast as they could make It, and we are
4
"Do think this decline will cause other failures
| al shouldn't wonder. But hope not"
| CONDITION OF THE L1SsBERGER AFFAIRS.
large IRON dealer, speaking to TRIBUNE reporter
Yesterday In regard to the sberger failure said he
did not believe anybody would suffer much, Lazarus
! IIssberger had been trading all along bankers
| credits and they had, of course, taken care
| 10 DO secured. The business, he further said
was in reality. Lazarus Lissberger's and not
his fathers and that could not into business
I'm his own NAME because he had not yet been released
from his bankruptcy OF 1873 when lac offered a COM
postou of 10 cents on the dollar lie had entered the
business entirely without money and had been until
lately rather fortunate. The cashier at tho Market
Bank Mr.. Gilbert said that Lazarus Lissberger had
done business with them for many years, and to the
| presept He believed the man had intended TO act
fairly and had simply little too far in the iron
boom last FALL and unable to recover his bal
ance He might have retired on the hrst OF January
| worth from $250,00O to $500, 600 49,, .
| "No, sir he does not owe this bank dollar"
| Hallgarten Co, bankers, in Broad-st. said that
they were creditors Of MI Lssberser, but declined t.
| with iron The Credit Lyonnaise is also credi
| tor 1t is said, for large amount, Mr.
| Robert the manager, satd that he had not
read of them IN THE TRIBUNE and be had taken no &C
ton since because he felt perfectly sae as ne hed &c
curitY on the debtors merchandise. prominent babE
Is also said to be creditor but Tor what amount coulo
their names could not be obtained. II probable
that the bankers who hold al the merchandise wiz moi
seek realize Immediately. but Will carry over thC
stock until Fail when It y hoped that Il may oe Solo