Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1883-06-19
THE CHICAGO FAILURE
M,aEooay L1AuIL1rIEs NOE KNOWN.

M'0EOCaS LIABlLI1IEs NOE KNOWN.
His Failure Said 20 Have Rsesn Forced by
HIS Friends ~ the Best That Gould
be Done for Aim.
The McGeoch ia ilure, the burst lard
corner, the panic in provisions and the
losses ard disasters that this caused, are
still thought of and talked about to the
exclusion Of everything else in Chicago.
John II. Bensley, of the firm of Bensley,
Wagner & Bensley, who was on Monday
morning appointed receiver, fled bond
in $500, 900 and has already entered upon
his duty of settling up the affairs of the
suspended firm Three hundred and odd
accounts have been written up, varying in
magnitude from tho sale OF 10000 tierces
of lard down to the sale of one s, 600 bushel
lot of wheat. cts about as difficult"
said member of tho firm, Ito give an
intelligent guess at our liabilities to night
as it was last Saturday night. We have
not been working toward result
we have been writing up the individual
accounts and separating. Here" picking
up package of thirty or forty accounts,
"are all the "B" accounts, and there"
pointing to package as large, "are all
the "A accounts. When We get through
writing up the accounts it will be short
work reaching the summary of our liabil-
tiles and assets, but we lave not got that
far yet. If I should guess at the indebted
ness, should put it at between 81, ,000, 600
and 1850, ,OOO"
Smaller firms which went under because
of McGeoch's suspension are waiting upon
the ScOtchman to straighten out their own
affairs. Ellis & Lightner, one of the firms
which suspended, owe probably the most
money. Their liabilities aggregate $780,.
600. They held 1000 tierces Of lard for
the Scotchman's account and it was mar
gined down to only eleven cents. J. M.
Ball & Co. owe probably not above $50, 900.
This concern had only 10000 tierces of
lard bought and it, too, was margined
down to about eleven cents. The heaviest
losers. it is now believed, were rich con-
Germs, which could not only bear the loss
with equanimity, but which had enough
money to hold their property until yester-
day. Some of these undoubtedly bought
enough at the bottom at the height of the
panic to partly or wholly recoup. The
board of trade firms never met with such
losses as were suffered Saturday. The
money which McGeoch owes-$1, ,OOO, 900
is due to his brokers. His banks, it is
said, held on to their property and only
sold Monday, after the market had re-
covered one cent pound from the bottom
| figures of Saturday.
Phil Armour Monday morning bought
every tierce of lard which McGeoch had at
the local banks, including all the property
he had hypothecated at the Bank of Mon
treal. This purchase aggregated over one
million tierces-s400, 600 worth of prop
erty. 1t was taken at 9.65. Armour
now owns all there is there. The orders,
he says, from jobbers during this forenoon
| aggregated more than all the orders
which have been received within the past
sixty days. 1t is easier now than it was
Saturday to get at the real facts which led
directly to the failure. The truth appears
now to be that a suspension was forced
upon McGeoch by his friends, because
they saw that it was the quickest and
easiest way out Of his troubles. When at
Q o'clock, it was certain that Alexander
Mitchell would loan no more money fol
the "doal," partner of the Scotchman
went to the bank of Montreal and inquired
of the book keeper how much balance the
firm had. 1t was answered that there was
$3.50, 900 to his credit.
The partner then went to MIR. Monroe
the manager, and said that the firm had
suspended. The banker was more agita'
ted than business men usually allow
themselves to be. He burst into tears
and said that be would be deposed and
ruined. He was finally calmed and the
partner said: "Mr. Monroe, we have q
balance of $3.50, 900 with you, but we have
checked up for margins and we wish you
would pay it out. You are secured if you
do not sell your lard" Mr.. Monroe
finally agreed to do this, and it is re
markablc fact that the checks Of McGeoch,
Everingham & Co., were paid Up to Monday
morning, one check for 81, 400 being certi
fed at the opening of banking hours Mon
day forenoon. Tho fact is that the bank Ol
Montreal, instead Of embarrassing Nc
Geoch, stood by him pluckily to the end.
1t probably loses not cent of money, fol
Armour bought of it all the lard which il
held for tho Scotchman's account The
other local banks also held on to their lard
until Monday at the urgent request of Nc
Geoch and possibly under some sort OF
guarantee from Armour. If this ard had
boen thrown out Saturday along with the
300, 900 tierces of future lard, the market
wonld of course have gone much lower
and tho panic have been more disastrous
1t is said that the Fowler Bros, endeavor
cd to buy up all their James Wright &
Co., brand of lard in Monday, Offering the
banks five cents over the market for such
as they had. Armour, however, got it
This is tho lard which the Fow,ers are
charged with having adulterated.