New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-25
THE TEA TRADE SURPRISED.
SUSPENSION OF CHARLES v. FAILE.

pCSh 6NcioN VT NHAhLEO V. fAILTJ.
THE LIABILITIES REPORTED 1850, ,000-No EsTr-
MATE OF THE ASSETS MADE-WHAT LED TO THE
FAILURE
The failure of Charles V. Faile of No. $50 Water
st., one OF the largest obbers of teas in this city,
was announced yesterday 1t was 50 completely
surprise to the trade that the fact that he had made
an assignment was almost the first sign of his
financial embarrassment Some of the oldest men,
bers OF the trade hestated then to believe the
report. The failure created great deal of excite
ment in business circles and served to depress the
tea market during the rest of the day. When
rumors OF the failure reached the Stock
Exchange, 1t was suggested that il due largely
to losses INCURRED speculation. IL is understood,
however, that this explanation of the causes of the
failure is wholly incorrect and that the, heavy de-
probation in teas in the last three years and the re-
cent sfringency of money have combined to bring
about the failure.
Mr.. Failes liabilities are about S35OOOO, but
they are distributed in such manner that his fail
ure will hardly affect any other house in the trade
In his assignment. which was made yesterday to
Isaac B. Crane, of Bucklin, Crane 6 Co., of No. 40
Sou hist. he gave preferences amounting to about
$ll4,OOO which is understood to be principally
borrowed money. The largest preferred creditors
are D. Is. Summeriield & Co., note brokers' of No.
63 Wsil-st.. who had advanced him recently about
$5O,OOO on his paper. Among the others are
Denton, Smith S Co., $2s, 900; Beebe ~ Brother
$4,000; Samuel Faie, trustee, $40 O20, and several
members OF his family. or the unsecured indebted
ness. about $780, 900 is in notes held mainly by
banks and trust mpanies, and about 100000 Is
due To Importers on account OF meTehan-
disc. The assets consist entirely of teas in
stock and of ordinary book accounts The value of
the assets has not set been determined, but an ex-
-. n
pared. 1t impossible yesterday to OBJ
tain even approximate estimates of the
percentage which the estate will pay
the creditors The utmost confidence in Mr. Failes
honesty was expressed yesterday, and many of his
creditors said they sympathized deeply with hun.
Mr. Faiie has been for long time one of the arg-
est and best known dealers III this city, His bUs-
ness was mainly with country traders. and he sold
very rarely to New-York retailers He was not an
importer of teas but in the last year or two he
The fact that most of his recent pur-
chases made for cash accounts largely,
It is sald ior the comparatively small ndeDtedness
for merchandise. 1t probably hastened his faiiuIe
because tue recent high rates for money nave made
mercantile paper almost unsuitable; Mr. Falle's
paper has always been considered glt-edged and
until the recent strIngencv has been eagerly
taken. The principal objection to it ever raised
was the fact that 1t was single name paper toi Mr.
Faile has been alone in business for many years.
The original lrm to whose business Mr.. Falle
succeeded finally about twelve years ago, consisted
of two brothers. Edward G. and Ihomas II. Faile.
who began business more than hall u century ago.
under the name of Edward &. talle * Co. The
senior partner, who the father of Charles "
Faile, died about 1850 and his brother retired
from business. The business was continued by
new firm, Faile, Wilkins X Co., of which his
brother Edward and Charles V. Faile were respect
lvey the senior and Junior partners. n January.
1870 this firm was dissolved aud Charles talle
afterward carried the business alOuo. He in
heritcd considerable fortune and until about
three four wears his business IS said to have been
uniiOrmly In 1879 he Obliged by
severe sickness TO intrust the management OF the
business almost entirely TO clerks. Teas had risen
in price and the house was large buyer, Inc al.
vance did not last long, trade langushed, and Mr.
Falle had on hand large stock OF teas wnich
steadily deprecated in value The losses which he
suffered In 1870 and 1880 were the beginning of
reverses which culmnaIed yesterday in failure. 1t
Is understood that he made moderate gain last
year. but it not sufficient to enable him to Tree
himself from the burden OF his previous losses aud
the continued shrInlage in the prices OF teas anu
tue recent monetary strIngency which prevented
the ready negotiation OF his paper at last crushed
him.
Mr.. Faile was not at his Office yesterday. but an
intimate friend, who saw him Thursday night
said Yesterday:
only 70 the tea trade. but to his wife anu other
members OF his family. | think that he hLnseu
did not suspect until within dag OF two, that he
would bJ forced to suspend. lie SAID TO me last
night that hen he found his failure inevitable he
regretted at first that he had not yielded two years
before. but that his creditors now were nearly I'll
same persons 70 whom he indebted then
while his liabilities not One-third what they
then | am absolutely sure that the failure
is an honorable one i'll every respect. Mr aile ls
trustee of several estates and every dollar oil the
trust funds is accounted for the trusts nc nelu
sacred throughout. BESIDES | is business and his
fortune he also inheilted strict honesty of char
acter."
Charles V. Faile married some years ago q
daughter of John j. Crane, formerly president OF
the Bank of the Republic. The assignee Is his
brother in-law.