New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-07-31
TWO FAILURES IN BOSTON.
A SURPRISE TO THE LEATHER TRADE.
SUSPENSION OF T. SHAW a co. AND CHARLES W.
COPELAND co.
IBY TELEGRAPH TO THE TRmrSE.l

| failure had occurred. DeyOnu inls nothihS o""'"
be asccrained until this noon. and The journal was
sharply criticised by some OF the other city daineS
| for publishing sensational news calculated 10
weaken confidence IN financial circles The news
| OF two heavy failures was published this afternoon
| by The Journal and caused intense excitement on
the street for it is believed their effect, especially
that of Shaw & Co.. the big tanners, will be so far-
reaching that they will probably carry down WIN
them several other houses. This morning banks
holding Shaw & Co.'s paper sent it to the Clearing
House as usual on the suppositon that the firm was
solid, as thoir checks had long been considered as
| good as gold. To the surprise of everybody worn
was sent back that the firm had no funds to meet
the demand. Extension of time OF one
hour was asked for and granted, put
when the hour of grace arrived y p. m.l the hrm
was still unable 20 meet its notes, and they went TO
! protest At that hour nobody supposed that IL
would prove more than temporary embarrassment
and that IL might have been caused by the suspeh
sion of Charles w. Copeland IL Co., the large Doo'
and shoe manufacturers, whose failure was known
on the street before that of Shaw ~ Co. 10 the
surprise of the business public, however. lew
honrs developed the fact that Shaw IL Co. were
hopelessy insolvent. Many were disposed to qne'-
ton the truth of the statements for this was the
largest tannery concern in the world Ihcy nave
always paid dollar for dollar. and the truth could
were likely to be ruined, at least badly crippled
by Shaw's failure. 1t will probably result IN the
suspension of few hide and leather houses and boot
and shoe concerns.
WHAT LED TO THE FAILURE OF SHAW co.
| The cause of the great failure Is directly
traceabe TO the Pacific Bank robbery of two years
| ago. Several boot and shoe houses were customers
Of that rotten concern at the time OF its suspension
in October. 1881. and they had large sums locked
| MP therein 10 deposits and in other forms. Bunyoh
and the others left poor array OF assets ana the
creditors of the bank have thus far received only
per cent on all claims. To avert general panic al
that time f. Shaw & Brothers assumed the burdens
of a number Of their customers who were heavy
losers and several heavy failures at that tine were
| thereby prevented. But Shaw a. Brothers have
! never been able TO throw on tho burden they as
| sumed Several Of the smaller firms have not re-
covered from the losses caused Ivy the banks failure
and In some instances their obligations TO Shaw ~
| Brothers have increased rather than diminished
| The load became greater than even the immense
resources of the millionaire house could carry
! The failure of G. w. Copeland d Co was the last
| straw This firm owes the Shaw Brothers about
| 100000. The assignment of the Shaw Brothers
TO Ferdinand A. Wyinan. an attach6 Of the firm.
include. all the immense assets OF real estate. STOCK
! aud personal properly. The firm owns over one and
| one-haf million acres of land. inclunina whole
| counties IN Maine aud immense tracts IN Northern
| NeN-York New Brunswick and the Province oi
! Quebec. Tanncrcs are situated az Forest city,
! lloulton Vanceboro. kngman. Jacksonorook and
| Grand Lake Stream. in Maine at Wells ST. Law
renee. 81. Regis. Auuta, Lincoln and Princeton IN
New-York. and at various points through
the provinces. The Canada headquarters
are at Montreal whore the firm Is known
as Shaw Brothers n Cassiis Bracklcy Shaw being
III charge. The property includes immense tracts
Of hemlock timber and many tenement-houses and
other buildings IN connection with the tannerics.
There are employed by the firm in various capaci-
ties between 10000 aud 1900 people, and tho
annual product Of their labors Is valued at between
So 600, 900 and -, 900. 900. The firm has done no
commission business. but ha, made direct purchase
of the hides which are sent TO the tannefics for
treatment. requiring on an average about six
months and then sold to the boot and shoe
trade Ii has been said that hides could not be
tanned at profit Tor less than G.cents per pound.
but Shaw Brothers claim 10 have done profitable
business AT , cents per pound
FlNANCIAL CONDITION or THE rIEM.
Fayette Shaw, the resident member of
the lrm is i'll. and his representatives
are unable to furnish detailed statement OF assets
and liabilities tonight. At the beginning of the
present year the inns quick assets were estimated
at S3I79 2J6; other assets, S2,362,25O; total
assets ~. 541 ,512; direct liabilities S737 Mt
Wymau the assignee Will continue the tanneres
IN operation pending the settlement by CREDITOR
for to suspend the works would involve additional
losses. The amount that the firm will bo
able eventually to pay It's creditors cannot OF
bs stated at present but there those who believe
that If the concern had desired it could have
easily raised the necessary sum 20 bridge over the
difficulty This course deemed unwise. a IT
mix ht sink good many others II the firm failed to
meet It's e1 pee tations. and it deemed best for
all concerned that the crash should come when 1t
did.
An effort will be made to prevent the
concern from going through bankruptcy
as is believed If tue machinery Of the vast esab
lshncnt be kept running the creditors will re-
alize more than they eau If the affairs OF the hrm
arc wound up at once.
CHARLES w. COPELAND a CO.'S FAILURE.
The announcement Of the failure OF Charles w.
Copeland q Co.. of this city extensive manufac-
turcrs and dealers IN ems boots and Shoes caused
a profound sensation among the trade as the firm
has been regarded rs among he most substantial III
the trade. Mr.. Copeland was not prepared to-day
10 make a statement TO the issue of the failure.
but it is learned from other sources That IL was
largely due TO the failure of Hoiheimer 4 Son. OF
Norfolk, Va; w. ~ Toler & Co.. of Baltimore. and
Stedman g. Co.. OF New-lork, with each OF which
firms Copeland & Co. have had extensive dealings
II is understood that they hold large amount OF
the paper of Hofihemer a. Son and Toler q Co.,
but it Is expected that little relief can lie had
IRON these sources
A dispatch TO The Journal from the neighborng
city of Brockton mere the firms largest factory IL,
saws that the excitement there this morning was
great when the failure announced The failure
was not generally credited about town, 1t being
thought that the firm had suspended business vol
unfairly and would doubtless resume when IL
found out where II stood. Charles w. COpelanu
A the firm. tho latter