New-York tribune., 1885-01-17
THE CISCO SUSPENSION.
SOME EXCITEMENT IN WALL STREET.
NO CHANGE IN THE LIABILITIEs-wHAT PREcIPrs
rATrn THE rAUuRF

the Stock Exchange Inc estimated liabilities VI
the firm were not changed materially, and that tho
firm would pay in full under favorable circum-
stances was considered foregone conclusion. Tho
assignee was not able to make any detailed state
ment of the assets and liabilities and he declined
to answer specific inquiries to the creditors OF tho
firm The general surprise at the large deposit
liabilities satisfied when 1t was UNDERSTOOD thae
Mrs. L. II. Green alone was depostor to the
extent Of about 81, 100000. The failure was pre-
cpitated, in fact, by the peremptory demand OK
Mrs. Green that large sum should be transferred
at once to bank which she named. The firm has
been her financial agent ever since it was estab-
lished and at the time of the failure held the bulk
of her securities in its vaults. person familiar
with the affairs of the house said yesterday that tho
failure was not caused by the default in interest on
the bonds of the Houston and Texas Central Rail-
road although the firm owned a large amount OF
| them nor by any provisions in the will OF John }.
Cisco the founder of the house but entirely by tho
large demands of Mrs. Green who was the principal
depostOr.
1t is understood, moreover, that f. II. Green 10
largely indebted to the firm and that an attempt TO
charge this Indebtedness, which is reported to
| amount to between $350O00 and $JOO.OOO against
the deposit account elected considerable commo-
ton. The inability to meet the cash demands OF
| Mrs. Green led to the general assignment by the
| firm.
Mrs Green, whose maiden name was Hettie Rob
| inson. has been reputed for many years to be the
| richest woman in the United States. Her fortune
| is estimated at from $30.00O.0O0 to $iOOO0,OOO.
and it may be still larger Strange stories OF her
| parsimonious habits have been told some OF them
are probably pure fabrications 1t is admitted.
however, by her friends that she is exceedingly
careful in her expenditures and that she has always
kept the management Of her fortune in her own
| hands She has been largely interested in the
Louisville and Nashville Railroad since her husband
was connected with it, and while he was president
of the company she bought the securities freely. IL
WAS reported yesterday that she demanded tho
transfer of her deposits when the proposal was
made that her husbands account should be charged
against her own.
| In regard to the assignment OF the firm John II.
Dos PassOs, who is counsel for it, said yesterday
that he had nothing to say on the subjects that
anything which might have come to his knowledge
was privileged matter of which he had no right to
sneak He expressed the onnon that the firm
| would be able to discharge all its debts. although
| some time might be required to market the assets
without considerable sacrifice. Mr.. Cisco the head
of the firm declined to speak about the failure. but
several of his friends declared that if the firm was
allowed little time it would pay all its debts 1t
| was the common opinion among them that the
| failure was in no respect the fault of the present
| firm According to them the evil was an Inherited
one.
Assignee May was down yesterday with
people who interested in one way or the other
in the affairs of the suspended firm. but he found
time to say few words to a TRIDUsE reporter Il
can give no idea yet of the assets liabilities Of
the houseu Mr. Nav said. a have been too busy,
in fact to be able 10 look at the books. have been
occupied in returning securities which the firm held
on special deposit. and the money winch was
deposited YESTERDAY and which arrived Dy ma ma'i ac ts
have been returned but | cannot say, who tho
special Or who the general depostors are"
| John A. Cisco was seen, but he aske To he excused
| from making any statement regarding the hrRs
affairs or its relations with the Houston and Texas
| Central Railroad To the inquiry 10 when he
knew of the default IN the interest OIL the com.
| pany's bonds on January =, he replied We did
not know of it until the default occurred ana Mr.
| Huntington began to buy the coupons. Ii was
as much surprise to us rs to any other concern IN
| the Street"
CRITICIsING MR. HUNTINGTON.
The friends of the suspended firm sharply crit
csed Mr.. Huntington, as the leading spirit In the
Southern Development Company, for the Houston
and Texas Central default ut the beginning of the
year. Much surprise felt generally in Wall
Street when the condition of its affairs was first
announced and many bankers and brokers hal no
intimation of it until their boys had returned from
| the ,ompany's office with the money for the JAN
nary coupons aud the news that they had to sign
paper which they did not comprehend, but which
proved TO be the release of rights as holders of tho
| COUPONS to the Southern Development Company.
| The general credit in which the company was held.
1t was pointed out by Mr.. Ciscos friends. was
shown in the fact that the first mortgage bonds sold
before January l. 1885, at ITO against 80 now,
the Western division tirsts at 100 against 80. and
| the second mortgages high as l2O against az.
| For the general mortgage per cent bonds, which
| ruled at SO before the default, there are now
! scarcely any quotations. A well-known broker WHO
| il an intimate friend of the firm said yesterday:
| q The house has been credited with having had
transactions in Louisville and Nashville securities
| on which undoubtedly large loss was shown.
| They were largely interested in the bonds OF tho
| Houston and Texas Central Railroad. and when
| the January default was made these became un-
marketable and could not be negotiated lor loahs.
| The unfayorable rumors circulated against the
credit of the firm after the default alarmed depos.
itors and when Mrs. Green directed the transfer or
| $500 600 fr IN the firm to the Chemical Bank, the
assignment was decided upon. Ii was deemed
unfair to the other depostors that such sum OF
money should be paid out to one deposltor. since
! the death of John J. Cisco the house was under
stood to be gradually liquidating and ths process
| would probably have been completed quietly but
for the recent combination OF unfayora l. Il cum
| stances A., n., mon, ,,o,,e s;xes
about three years ago and they retained q iargo
| amonnt of the bonds for themselves ana their
| friends It was nc the time when the appetite for
| new bonds was about exhausted. anu the hrln held
on TO their interest not wishing. suppose, W Ptsss
| them at a sacrifice on the market 1t is a singular
thing that the Houston and Texas Central shouid
have Jared so badly last year. PREVIOUSLY ~ had
| been. according TO the company's statements as
| given ont and published in Poors Manual earning
| anywhere from 5000, 900 to $500. 900 year over
! and above all the interest. Under the control or
MIR. Huntington and his friends its gross earnings
| have fallen Oft greatly while Its expenses nave
remained about the same, SO that Mr. Huntington
Claims that it did not, by considerable sum. earn
even the interest Oh Its first mortgage bonds no
! interest all the hrsts amounts to less tnan %
| 900 900 per annum. Such change in the eondi,
ton of affairs is remarkable aud can be a aecoun.ea
for only the suppostion that either tne ,sihIs
| published by those who formerly responsioio