The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-02-06
FERRY BROTHERS. FAILURE,
The Liabilities Expected to Reach
Three-Quarters of a Million.
The Assets Reported to be Very SMALL
Statement of Causes Underlying This
Extraordinary Collapse.

Extraordinary Collapse.
DETROIT, Feb Sit is difficult to ascertain
anything beyond general facts as to the fail.
ure of Perry IL Brother, at Grand Haven.
They have been developing for several years
silver mine in Utah, which has taken all
the means they could raise in every diFec-
ton. 1t has as yet made no returns though
they have been sanguine that there was a
fortune in it. For about two years the
firm has been in financial straits and
many of their more prominent cred
itors have, since Jan. l, been quietly
securing themselves. Several attachments
and mortgages were filed at Grand Haven
last Friday against property belonging to the
firm Several sales of real estate are reported.
Genesee County and the First National Bank
of Flint attached certain property at White
Hall and Montague on Saturday, which had
the effect to bring matters to crisis. The
secured liabilities are held mostly at Grand
Haven and Chicago, and are supposed to be
something over 100000. Something over
S25, 900 was lstely realized from
the sale of undergrad interests
in Chicago and some real estate
is supposed to have yielded as much. This
went to meet paper which had been Endorsed
by the purchasers Very little property is
now visible, and unsecured creditors will
probably be left The liabilities of Ferry d
Brother and other firms in which they are
jointly interested, will, it is believed, range
from 100000 to $750,000. They will prob
ably reach the latter amount. and about $780,
600 will cover the assets. These have been
secured to creditors mostly in Chicago, Grand
Haven and Grand Rapids. The creditors not
secured will probably not get cent. The
failure involves particularly Ferry.& Bros.
Ottawa Iron Company, of Ferrysbury s H.
Lasley d Co., of Montague, and the Michi-
gan Barge Company, of Grand Haven
Too Many Irons in the Fire.
Chicago Inter Ocean, Yesterday.
The reported failure of the large wholesale
lumber concern of Ferry & Brother, OF
Grand, Haven. Mich, has not created much
of a sensation here for the reason that the
Chicago branch of the house was disposed OF
the LIST of January, and was at that time free
from commercial debt So far as it is posi-
BILE to learn, the concern has made money
both i'll Chicago and Michigan in its legiti.
mate business but has become involved in
outside speculatons and through Senator
Ferry's expensive political aspirations. The
chief, and perhaps the only creditors worthy
ofmention in Chicago, are the Union National
Bank and the National Bank of America late
Fifth National. The former has protected itself
by bill of sale of logs which the firm ~ilds
in Michigan, and the latter, which holds as
much as $45 600 worth of the paper of Ferry
q Brother, is said to consider the security
ample. The firm is rated at BradStreets as
doing business with capital of from $780,,
900 to 10000, and credit very good" The.
concern is interested in different firms.
among which are the Michigan Barge Com
pany, Grand Haven; the Ottawa Iron works,
Perrysburg f. H White & Co., S. a. Lostig
& Co., of Grand Haven. and Ferry, Dorsberg
& Co., of Montague, Mich. During the past
few days paper with Endorsements by some
of these firms has been protested, but is be-
ing taken care of by Endorsements of Dwight
Cutter and d. Stewart White. Dwight Cut
ter is rated at 100000 to 81 600. 900. and d.
Stewart White at $3.50 900 to 100000. These
gentlemen are directors OF the First National
Bank of Grand Haven. They are said to
hold a large amount of this paper They are
also the indorsers of the greater part
of the firms paper held by the First National
Bank of Grand Haven (for $75, 000) and that
that held by the Chicago banks. The
Grand Rapids bank is said to hold
500, 900 of the firms paper, which is Sc
cured by collateral stock in its mining inter-
ests and reaI-estate mortgage. The assets
stated The inventory made June l. 1882.
may serve to convey an approximately correct
idea of them. This showed assets 1910 272;
liabilities So, 600 The assets consisted of
5, $50 600 feet of lumber in Chicago yards,
valued at 1888 900; bills receivable, $27 900; ac-
counts, $24, 900; real estate, less incumbrance,,
1913 900; logs, 100000 feet-mills value,
$65 900; pine lands, $4,000; Grand Haven
real estate $50 900; vessel property, $4,000;
Michigan Barge Company stock. 5000. 900;
other stock and cash. $25, 900; bills and ac-
counts receivable at Grand Haven, $4,000
The assets were considered at the time
susceptible of reduction from the amount
claimed. The silver mines of the concern at
Park City, Utah, are said to have engrossed
the attention of e. P. Ferry and large
amounts of the firms money, while Senator
Ferry has devoted himself to politics. to the
great detriment of his business interests,
The depreciation in value of the immense
tracts of timber lands which the firm owns,
and which are now almost exhausted, has
also had part to play in bringing about tho
present condition of affairs. The feeling
among lumber men is that both members OF
the firm have neglected profitable business
and have been ruined by having too many
irons in the fire." The immediate cause O
the failure is the fact that fol might ago the
Chicago banks refused TO carry the firm any
longer without greater security a week ago
the Grand Rapids Bank did the same, and
last week its (the firms) paper went TO pro
test in Detroit.
Lawsuit Growing Out of Folks Defslcatiou.
NASHVILLE. Feb. 5.-Counsel for the State
to-day entered suit in the Chancery Court to
rppovar S57 000 fran tho MerchnnTSi National