The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1883-02-18
FINANCIAL WRECKS.
A Bad Showing Made by the
Ferry Brothers in Connection
With Their Failure.

Detroit, Mich, Feb. 12.-The
Ferry Brothers financial disaster
Stirs more and more excitement as
the facts are developed. The fol-
lowing is a summary of them SO far
as they have come to the surface in
respect to the transactions men
toned: In November, 1877, Sena-
tor Thomas w. Ferry approached
his old friend, ex-senator H. P.
Baldwin, asking financial accom-
mediation. He assured Mr.. Bald
win that the firm of Ferry & Bro,
of which he was member, was
worth at the time 100000, and
that he wanted to open a running
account with the Second National
Bank, of which Mr.. Baldwin is
president. His proposition was to
give Mr.. Baldwin deed or deeds
of trust on property located in Cook
County, Illinois, and Grand Haven,
Michigan, for $4,000, Mr.. Bald
win, in consideration of the same,
to guarantee his account at the
Second National Bank. When the
mortgages were drawn he assured
Mr.. Baldwin that they were not
really necessary to secure him, as
he Gerry was rolling in wealth,
and asked as favor that they be
not placed on record, as the general
knowledge of their existence might
impair their credit and embarrass
the vast operations of Ferry &
Brother. The senator went on to
assure Mr.. Baldwin that he could
hold the deeds, and that at any time
there was a shadow of doubt as to
the absolute solYency of the firm,
or any possible chance of the
Second National Banks claim being
imperiled, he should have prompt
notice, so that he could place his
deeds on record. The Second Nation
al, guaranteed by Mr.. Bald
Win under this arrangement, allow
ed Ferry s. Brother to draw funds
amounting IN the aggregate to $751;
600, which they still owe. When
the report became authenticated
that Ferry & Brother were in a
tottering condition, Mr. Baldwin
satisfied himself that the firm was
helplessly involved, and thought it
about time to place his deeds on
record in Chicago and Grand Haven,
On Friday Mr.. Baldwin mailed his
deed to Chicago to be placed on
record, but to his establishment and
that of the bank officials, word was
received that there was a deed of
record to Cutler & White ahead of
BaldWin's, for the identical prop
9rty decided to him as security.
deed was dated Novem-
Der II, 1877, and Cutler 81 Whites
December q, 1882. The Grand
Haven property was likewise trans
erred on the quiet. Ferry's tran
'actions with the First National
Bank were not as brazen as with
Mr.. Baldwin, but in the light of his
recent transfer of his property,were
equally deliberate. "Senator Ferry,
)r Ferry & Brother, never had an
account at this bank" said President
Wendall, "and whatever ac-
he received was
on account of his
position as United States senator.
lis prominence in Michigan affairs,
he general belief in his wealth, land
lis own assurance that he was
'ich." The First National Bank
holds $10,5O0 of Ferry's paper. and
n proof that It was altogether q
accommodation to Senator
Ferry, President Wendell cites the
act that when the paper 1.-TWO |
notes. was presented, bearing the
Endorsement of Ferry s. Bro, he |
insisted upon having it changed so
Is to substitute the single endorse
nent of Thomas w. Ferry. One
If these notes is overdue and pro-
,ested; the other is not yet due.
There is still more of the Ferry
paper held directly by the Detroit
banks than is mentioned above.
The Indebtedness of the firm thus
far known to the Detroit banks is
IN round numbers as follows:
Grand Haven, $4,000; Albany,
100000; Grand Rapids, $4,000;
Boston, $25, 900; Philadelphia, $780,
700. These sums with the obliga-
lions here foot up $4,000, but it is
estimated that there are outlying
liabilities that will swell this
to fully 100000. 1t will
be observed that round sums
have been raised in Boston,
2 Philadelphia and elsewhere, and an
aStute capitalist says there Is no
doubt that Senator Ferry's political
reputation was the principal collat-
eral used there. Mr.. Baldwin said
this morning: at is a subject that
language cannot do JUS
tice to" He did not want to talk
through the papers, but would cork
up what he had to say for Senator
Ferry'S special benefit hen he met
him face to face.
E. 2. Ferry. brother of the sena-
tor, said to The 16nses reporter to-
day, that he was not at all discour-
aged, and that the firms in which
he and bis brother are interested
are by no means in a hopeless
condition. All that is necessary,
he declares, is q little forbearance
on the part of creditors and every
dollar that the Ferry brothers owe,
or that is owed by any firm In which
they are concerned, will be paid.
He also adds: "IknoW of no bank
in this state or in Chicago that is
not fully secured" Edward P.
Ferry has also given a trust mort
gage to James M. Barnett of Grand
Rapids, covering property to the
value of 100000. His total indebt-