New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-07
SUSPENSION OF 4 B1yEIYG HOUSE.

BOsTON, March G.-The banking house Of
Charles A. Sweet IL Coz No. 40 Satest. suspended pay
ment this morning. A committee is now investigating
the Affairs Of the The house has been adyanc
ing money It is stated, to the Massachusetts, Central
Railroad taking its bonds and placing them IN the mar
kct The road il a one; its bonds have shrink in
vau ana the banks which have carrying the bonds
have called on Sweet & Co. for additional funds To this
call the firm has been unahl, to respond
Charles A. Sweet at the head Of the firm, IA reported
TO be worth fully a. 900 that Is not involved in the
failure. The other members of the firm are G. W. d.
Riley 4. W. ".rliins and Waiter II. Sweet There was
not a suspicion Of tlclr weakness until the announce
mcnt OF the suspension AZ II o'clock The firm sub
scrlbcd TO only $4,000 Of Massachusetts Central bonds
the start but has since loaned large sums upon them
aud has Of late been buying heavily 10 sustain The mar
kct u Is umorcd that the collapse of the Connection
Valley securities has FASTENED the disaster MasSaciu
sets Central bonds were quoted at 10l last summer and
he sales Saturday at so Brokers now expect
serious break from the latter price The road IS very
short one, IS newly but and conservative men have
long looked upon the bonds selling beyond thcrytue
Colonel Tower of Tower, Giddin-s Co.. ore of the
examining committee states that the liabilities OF the
firm will amount to between S3O,OOOOO0 and $4,000
OOO and that the firm will probably not resume but VIII
liqudote, paying dollar for dollar.
sweet 4 co. state that II they could dispose Of their
cucs at present market prices they would have large
surplus over their liabilities. The principal creditors ere
not have occurred had little more d" backbone" been
crcdiiors Of the suspended firm viii lose nothing.
Tbe Transcript saws The Liabilities Of the firm ire IN
round numbers - 100000, and outside Of the Mas-a-
chusctts Central Bonds tine assets are rtcS5 Ia every
resnect is of the assets shows 1900 900 OF bonds.
which rXruIing the ~6JJC0O Of Massachusetts, Central
Rnnds stand uuQucstiourd rs the choicest Investment
securities IN the market. Among them are $4,000 of
houJ. of cities states and towns, mostly IN New
England; Chicago, Burlugto aud Quincy Isiroad Con
RRoiiIr,od In Nebraska bonds: Ncw-Yor and New
England bonds and phiadcpIn. Wilmington and BAIT
more trust cert hcatcS lle unsecured ha'it' Oh ug
firm are about S25OO0OO and Mr. sweet ba- personal
property odts c the firm more than sufficient to secure
this amount The members OF me hin sly th5' 10
creditor need lose dollar. and an nyes igllon OF me
assets SHOWS Ie,nar.3nR Gel 1l'e, llr 'Htt % n
TAI in the Brokers Board was Lee, man Wo' PG lht
of amo. any other banker IN the street The liabilities
are almost entirely TO banks upon good collateral
The New-York correspondents of the sus
pended firm are Edward Co., of No. % Broadst.
The business relations OF the two houses were not I'M
usually intimate, although the senior partners OF the
firms re brothers Both had retired from the practI'
cal OF the business Of their houses but re-
tanned their partnership interest in it, The announce
uent OF the failure Of the Boston firm led many In
ourics In Wall street rs to the effect 1t would nave on
the New-York firm. William l.. Bull, Of the firm OF Ed
ward sweet 4 Coz said that the firm would lose nothing
Ia, tbe Boston failure 1--WE have done little business
for Charles A. Sweet & Co. for the las; two years" be
added; "and the balance that is in fact in their
favor We received dispatch from them this morning
in which they said that they should be obi ged TO sls
uend II was great surprise 70 me- FOR had supposed
the firm to he worth S1,OO0,OO0 at least. Mr. Sweet
alone was supposed generally to be wealthy. The firm
was formerly ore of the most substantial In Boston; 1t
was the very expression Of conservatism We have no
other information regarding the failure and cannot even
guess at the probable amount Of the Liabilities under
stand in a general way that the suspension was due
largely TO heavy advances to the Massachusetts Central
Railroad"
In regard TO the rumOrs that certain Boston banks
might be affected by the failure, Mr. Bun said: 81 am
.ure that none OF them viii he hurt seriously. The
firm kept its accounts i'm the strongest and most con-
scrvativc banks The failure cannot affect them
M. ncWs of the suspension caused little excitement In
wall street. bat il lei to many Inquiries rs 10 the stand
n of other Boston houses ana - runuls aHtcthR Ger
tain Boston banks While the news WIS received geitr-
aIy i'm tAi5 city with surprise. private dispatches
received from Boston intmated mat the IauuT6
vas not uucypcctcd in tnat cy Ia partial KPtuatlo ION
of tbs fl prominent bank officer sald YESTERDAY IN
former wears the firm prominent one ana was WcI
noWu in Ncw-York but in the last two or three years
mas gradually dropped out OF sight here, supposed th
il had pcutY Of money, Tut no great abundance OF pu'l
moss ability II had formerly large mo of investment
customers and did large business III investment '-O"I
tie, aud Government bonds. &c.. r. ,
Ihc nrcsaut firm Of Charles \. Sweet q co. was
formed about 1874. II had Dcen Brewster sweet 20
Tor many years but In that year tho On hIm Na7 US
s,jyrJ Two other firms were formed; BrCwsfcr
Uaslptf A. 90 and Charles A. Sweet * Co one OF the
inner. Of inc present firm. George W I. Riley was
member of lie New-York stock Exchange