The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-06-21
FAILURE OF G. K. GARRISON.
The Great Railway and Gas Stock Spec
ulatOr Makes an Assignment.
He Has Many Millions Tied Up in Unmar-
ketable Shares, and No Money to Pay
His Matured Obligations.
THE GARRISON FAILURE.

The CommodOr Makes an Assignment for
the Benefit of Creditors.
New YORK, June 20.-Cornelius K. Garrison
to-day filed an assignment in the county court
clerks Office to John I. Terry. Preferences
1851, 800, distributed as follows: Bank of Cali
fornia, $50, 900; Bank of New York and National
Bankers Association, 500, 900; United States
Trust Company, 800, 900; 7. W. Pearsall & Co.,
$50, 900; notes to Eames & Moore, $30, 900; Mich
igan Car Company, $4,000, Mason
Manufacturing Company, $1S, 900; Mason
. Machine Works, $l4, $50; Carnegie Bros,
$50, 900; Diamond State Iron Company, $4,744;
Banworth Company, $3.50; ~sundries, 5000.
The details of the assignment provide for pay
ment of a certain sum to Letitia w. Garrison,
and sums to his lawyers; also, to pay George J.
Forrest the Indebtedness for management of af
fairs, and also to pay him such further sums as
may be necessary to indemnify him for all liza
bilities incurred by him by reason of a subscrip-
ton made by him by request of Garrison, and
for his account and benefit in the Toledo e.
Bellefontaine Railway Company, built in con
nection with the Wheeling & Lake Erie road,
and to discharge Forests liability; to pay a sum
necessary to indemnify GeorgeJ Forrest and
Abraham Garrison, of Pittsburg. for liabilities
Incurred by them at the request of Garrison,
for his account, to the capital stock
of the Pittsburg, Cleveland & Toledo railway,
and to discharge their liability; to pay Alfred
NJ. Bellings, of Chicago, $50, 900 Indebtedness
due him on general account; to pay and dis
charge the following promissory notes made by
Garrison: One note in favor of the Bank of
New York and the National Banking Associa-
ton. 5000, OO0, due on Aug. 30, 1884; a note to the
United States Trust Company for 800, 900; one
note in favor of F. w. Pearsall, 500, 900; one
noae, payable to Garrison's order, $50, 900. All
these notes are secured by collaterals. There is
also provision for paying Eames & Moore,
brokers. such sums as may be owing them on
account of purchases made and sales OF stock
for Garrison.
Additional provisions are as follows: To pay
whatever sum is necessary to discharge the liza
bility of Garrison on the following six notes. all
drawn to the order of the Wheeling q Lake Erie
Railroad Company, to the order of Garrison and
Endorsed by him and delivered to the
Michigan Car Company: One note for 81. $50,
with interest, due on Sept. 2, 1884; one
note for 81, $50 with interest, due Dec. l, 1884;
one note for 81, $50, with interest, due March 81,
1885: one note for 81, $50 with interest, due
June ?, 1885; one note for $11, $50, with interest,
due Sent. 2, 1885; one note for $11, $50, with in
terest. due Dec. 3, 1885; to pay whatever sum is
necessary to discharge the liability of Garrison
upon three %promissory notes, amounting in the
aggregate to $1S, 443, all drawn by the Mason
Manufacturing Company, each payable to the
order of the company, the notes having been ac-
cepted by Garrison and payment assured by
him; to pay whatever sum is necessary to dis
charge the liability of Garrison on a promissory
note for $14, $50, drawn by the Mason Machine
Works to their own order and accepted by as
signor and payment assured by him; to pay the
liability of assignor on three promissory notes
drawn by Carnegie Bros. & Co., each
g pSts liability $780, G foe railroad t9 pay su e a
furnished by the Diamond State Iron Company,
of Wilmington, Del, amounting to 81, 744; to
pay for railroad supplies furnished by Dilworth,
Porter & Co., limited, of Pittsburg, 81, $50; to
pay any sum necessary to save harmless Oliver
Garrison, George ]. Forrest, M. ID. Woodford,
Noah H. Swayne, or any other person who has
acted as agent or representative of assignor
in the care or control of his interest in the
Wheeling & Lake Erie Railroad Company, the
Wheeling Lake Erie Bridge Company, the Oeve-
land & Marietta Railroad Company; to pay the
liability of assignor as contractor for building
the Bowerstown extension of the Wheeling d.
Lake Erie railroad.
Some of the schedules of Commodore CARR
sons indebtedness have two notes of Pearsall &
Co. among the preferred creditors for $500, 900.
The firm states that Garrison does not owe them
anything; they loaned him $50, 900 for other par
ties, who have ample collateral up to secure the
loan.
CAUSES OF THE FAILURE.
Melville G. Day, counsel for Garrison, says
the assignment is made because of financial en-
barrasSment. 1t was forced upon Garrison by
the protest of notes under his Endorsement yes
to-day. He is a heavy holder of securities, and
so much of his wealth is tied up in these, which
are almost unmarketable at present, that he
could not meet his liabilities. He has a large
number of Ohio railway securities, which have
shrunk, but which are not now on the market,
and the value of which cannot be estimated.
The assignment is simply for the benefit of
creditors.
The amount involved by the failure is sup
posed to be probably So, 900, 900. Assignee
Terry said it was impossible yet to state the fig
ures. The effect on Wall street was to still
more unsettle things, though not to so great an
extent as was feared. 1t is said Garrison is not
very largely interested in speculative stocks, his
fancy being for gas stocks and outside special
ties.
Stocks fell off l to 3 points, but no failures
were reported.
A prominent banker said: 1.-THE effect of the
failure, coming as it does now, will naturally un-
settle things, and, in fact, stocks cannot go any
lower without hitting and hurting some one. /
think the failure rather a good thing than other
wise, for it will distribute a large amount of
money among many different people. Men like
Vanderbilt and Garrison do not stop at an &C
cumulation of 50, 600, 900, SO, 900, 900 or S., 900, 600,
but they run it up to $40, 900. 900 and 500, 600, 600.
This is wrong, and the distribution of such large
amounts will benefit the people"
1t is limited in Wall street that should the de-
eision in the Marie Garrison case be adverse to
Mr. Garrison, the assignment made just at this
time might save him considerable future loss.