Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1882-09-25

Ending OF tho Career of . uAshInE New
YORK Broker.

Ending OF tho Career OF . UAS0unS Now
YORK Broker.
The principal topic of conversation in
New York commercial circles was the fail
ure of the well-known note-broker, Alon-
70 Follett-''Gilt-edged FOllett," as he
was popularity known. He was one of the
heaviest brokers in the city and the fact
that he dealt almost entirely in the
"gilt edge" paper of the leather mer-
chants makes the reports of q heavy
shortage seem improbable to business
men. 1t is said, on the other hand, that
Follett secured large loans from banks on
notes that had been given him by his Gus
toners to sell, and that he lost most of
the money SO raised in grain speculations.
He himself says that his embarrassment
is only Temporary, being caused by the
failure of his customers to respond to his
call for cash on account of advances
which he has made on large amounts OF
commercial paper. He denied that he had
hypOthecated notes Of his customers, or
had been engaged in speculations with
their money.
The story of the failure, as told by .
prominent merchant, was quite different.
According to this gentleman FOllett Oh
tanned a loan of 500, 900 from the Man
haitian banking company on a large batch
of commercial notes. When they called
in tho loan FOllett was unable 10 meet
their demand, and tho collateral notes
were put into the hands of Platt s. Wood
ward, q rival firm of note brokers. Platt
& Woodward are reported to have
negotiated somo of the notes on
the street, and FOllett's credit was
hurt at once. Among those who lmme-
diately sought for an accounting was Mr..
jackson s. Schultz, who was creditor to
the amount of $4,000. Mr.. Schultz was
given a check ON the PhDnix national
bank for $1,000. which was presented last
Tuesday and promptly protested. This
was the first real indication that Follett
was financially uns0und. His credit in
stantly collapsed. Those Of his customers
who had allowed him to hold their notes
for sale without making any immediate
returns called upon him and insisted upon
either having their notes back or their
money if the notes were sold. The broker
declared his inability to give either.
On Friday he was arrested at the suit of
Rossiter & Skidmore, of No. " Broad
street, in connection of an unsettled bal
ance of $4,000. He was bailed by F. B.
Thurbur and Charles Boynton. The at
tachment issued by Henry Werner against
funds in tho Pi1nix national bank was
released on payment by the bank of 50 500.
Mr. Follett was generally rated at $500,
600 personally. He has a half interest in
nursery at Bloomington, ILL.,, in which the
capital invested is s120, 900. Among the
various stories told on the street concern
ing the failure OF Mr.. Follett, is one that
he was engaged in large speculations with
another firm. One of the brokers' credit
ors said that when he demanded his notes
or his money Follett offered twice the
amount of security Endorsed by this house
but the offer was refused FOllett recent
IL purchased the elegant house in which
he lives in West Fifty third street, for
$97, 1000. His stables contain some fine
blooded horses. This property, it is said,
will be attached by creditors.