New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-06-21
FAILURE OF G. X. GARRISON.
AN ASSIGNMENT MADE TO JOHN I. TERRY.

CK Garrison made an assignment TO John l..
Terry Yesterday giving preferences to his wie ana
her father his counsel, business manager ana other
agents and to several banks, trust companies ana
S,ock Exchange firms to which he is owing money.
The real amount of the preferences is unknown be-
cause some of the liabilities are contingent Inc
sums due to the banks and trust companies repre-
sent loans made to Commodore Garrison on c"lat-
eral secnrity said to be ample The formal con-
fession of the Commodore's embarrassment caused
little excitement in Wall Street although the prices
of stocks declined steadily during the day, because
II was well known that il not caused by specu-
Iation. The rumors which were circulated on Thurs
day had been denied on the authority OF MI Gar
rison but 1t was understood by his friends that al
assignment was merely question of few days.
CAUSES OF THE FAILURE.
The canses that have led to this result are under
stood to be diverse. Mr.. Garrison has become IN
the last few years physical wreck, and, while MS
mental faculties are said to be unimpared, he mas
been wholly unfit TO attend to business Tor some
time. Since the sudden death of his son William
r. his affairs have become more and more coniuseu'
until an assignment was made unavodaDIe III Is
understood that in the last few weeks be made
strong appeals for aid TO several prominent capital
lists and that he consented TO the assignment only
after he was convinced of the uselessness OF these
auplcations His entanglements IN connection
with the Wheeling and Lake Erie Railroad ana
particularly with the Pittsburg, Cleveland and 10
ledo Railroad, by which he hoped at first to gam
an entrance into PttsbuTg for the Wheeling hne'
were one of the immediate causes of the failure
Hewas urged by his friends to desist from the en-
terprses. but he refused to listen to this advice
until he was so heavily involved that even his
friends were forced to admit that the only course
left for him was to complete the roads. He has
90 In no hu d
ING road ami now holds all the bonds issued on it,
He sold none of them and borrowed money on only
n small part To raise money to build the road he
sold part of his gas stocks and bonds and pledged
the rest in loans In this way he disposed OF ms
entire interest in the st. LOUIS Gas Works lie De-
came involved in the Cleveland enterprise III an
attempt to secure by it line to Pittsburg. lie
owns a fourth interest in the road, and is an IN
dorser on the company's notes to the amount Oh
some 500, 900 or 100000. Several of the notes
have been dshonored lately, but the bulk of the
debt has been extended for four months. 1t is un-
derstood that only about 100000 in amount Is
pressing for immediate payment The other in
dorsers were unable or unwilling to bear their part
of the burden and Commodore Garrison found his
resources inadequate TO the occasion.
ANNOYING LITIGATIONs.
But in addition to his shattered health and his
lack of ready money, Mr.. Garrisons fear OF the re-
suits of the litigation in which he engaged in con
sequence of his railroad complications is said to be
one of the predominant motives TO his assignment.
The Marie Garrison suit and similar one by OLD
stockholders of the Missouri Pacific Railway have
caused him great annoyance, and the building of
the Wheeling road has brought on him suit by
one of the contractors for nearly $3,0000OO. 1t is
admitted by some of his warmest friends that the
assignment was caused in part by the great uncer-
tainty about the results of this litigation One OF
them said Yesterday that in his opinion the suits
would soon be compromised, because the assignment
would make any Judgment obtained i'll them utterly
worthless.
THE LIABILITIES AND ASSETS.
Commodore Garrisons liabilities and assets have
not been scheduled, but from the best information
obtainable it is probable that the present liabilities
will not exceed 81, 100000. Those in connection
with the Wheeling and Lake Erie and the Pitts
bure Cleveland and Toledo railroads amount to
about 81 go 900; those secured by colateIals 10
about $500 900, and those resulting from ms Iela-
tions with the broken firm OF Grant y, ward 70
$3.50 600 The assets undoubtedly greatly exceed
the debts but their value If forced TO an lihediale
sale, is problematca. John l. Terry, the ass,ghoe;
said Yesterday that he was absolutely ignorant oI
the real condition of affairs. have entered on
possession of the property, he remarked, but shaI
not be able to form an opinion OF tlc esIItc I3I
several DAYS. | am told by Mr. GarrlSons 1rlenus
that the assets are large and the debts small.
shall begin taking schedule OF thelh lo-lioIIoW'
bnt EXPECT that it will require several days to com
plete the work. | cannot possibly say more ABOUT
the matter now" It's said that MIR. Terry accepted
the trust only at the earnest solicitation OF mutual
friends, who hope that under his management
large part of Commodore Garrls0Ms fortune may oc
saved Mr.. Terry is wel-known as member OF the
firm of T.. ID. Morgan ~ Co.. ana Is a merchant OF
high standing. He is a director III many prominent
trust and insurance companies, and is member Ol
Tho Executive Committee of the Western Union
Telegraph Company He elected a member of
the board TO succeed the late Ex-Governor Morgan,
of whose estate he is one of the executors. lie mas
had considerable experience III rallGOad manage
ment.
WHAT GEORGE ]. FORREST SAYS.
Though Commodore Garrison in his Office
yesterday afternoon he said to he unable to see
any callers All such were referred to George j.
Forrest who is one of the preferred creditors, and
has for some time helped Mr.. Garrison in the man
agement of his affairs. To TRIBUNE reporter, Mr.
Forrest said
"Ihave been taken entirely by surprise by this assign
ment and my surprise shared not only by the entire
business community OF SolK Dut ny 0Om9dGre 9 @
o'clock yesterday afternoon, ana up 10 that lhe such
thing assignment had not been thought oi Last
night, however the Commodore held lttlG meeting at
his house. which present some ms eS adNserS
and few intimate friends The assignment was then and
there decided and the papers hurledy prepared
and filed this morning.
why was such ID step decided upOni"
Simply 10 protect the CommotOIe's interests. His
friends wish him TO pay only his personal Liabilities ana
not to be held liable for the ilsDng' Cleyeand SaG %
Toledo paper which hs has ndorSed ia company WIN
Have You any idea of the amount Of paper which was
60 igdOrsedl' - ,,, ~
an the cOmpalys safe and have means OF knowing"
What eject will this assignment have upon the Com
modores business enteIpI1sesP
s1ge All can tell you Is that In ebusness Is now IN
the assgnees hands and thorough Investigation Will
be al commenced The Commodore Is i'll 10 III con-
dition 10 see any at present
MR.. GARRISON BROKEN DOWN.
One of the co-indorsers with Commodore Garr-
son is w. C. Andrews, president OF the New-i0rk
Steam Heating Company. lie was seen at his Office
No % Cortandt-st., and said that the notes of the
Pittsburg Cleveland and Toledo Company
amounted TO about 5000, 900, and that they had
been indOrsed by Mr.. Garrison and four or hye