The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1885-01-16
FIRST BRICK TO FALL.
now ABOUT TnEREsT oF.TnE now

Il .II41eOA O4N404 A0
HOW ABOUT rnEREsro oF.rHEnow
The Suspension of oliver brothers 3 Phil.
lips, of Pittsbarga-Linbtiitie Said TO be
Fivo slliion.-So Definite Statement
FurnIshed-Tho Best Hoped For.
PlrrspuRoH, Pa, Jan. ,15.-Rumors Of
The embarrassment Of Oliver Brothers &
Phillips, the greatest iron firm in the city,
when all its connections are considered,
few about like wild fire to-day and setthe
town ago with excitement. Such an
event was recognized as catastrophe un-
eqaalled by any previous failure, and the
great popularity OF the individual mem
bers of the firm made 1t all the more to be
deplored. The truth Of the matter seem
ed TO be that the dull times, an immense
pay roll and other necessary expenses
have compelled the firm to ask for IN ex-
tension somewhat similar to that given to
Graf, Bennett 4 Co. There are immense
liabilities in this case, to be sure, but ow-
! ing to its specialties and the nature OF It's
business no firm could recover itself
quicker and more satisfactorily IL there
was an improvement in the business Of
the country. H.,
There are many stories ahoat as to the
immediate cause OF the trouble, but IN
the banks and on all sides it seemed to be
the general feeling that an extension
would be asked Tor, aud would be granted
by the creditors.
A SENSATIONAL STORY. a
One of the stories which is generally
current, and which is repeated with an
air Of conviction by those who ought to
know something OF the matter, is that
some New York loans were called and the
firm was unable to meet them. It said
that these New York loans were made by
DR.. Hostetter, although Oliver Brothers 4
Phillips did not know that 1t was his
money. Il. Is said further that the loans
were made in order to injure the firm be-
cause OF the action Of Mr.. Harry w. Oliver
in the Pittsburgh & Lake Erie Railroad deal.
As Is well known DIR. Hostetter Is q
large holderof Lake Erie stock and bonds.
and it was This ambition to control
the road and become its President.
When Mr.. Oliver bought the option on
the block OF stock held BY the Economics
it gave him the control OF the balance OF
power. He offered the stock to Dr.. Hos
tetter, but that gentleman refused to pay
the price asked, saying he would not give
over 500 a share for the stock. He was
told that II he did not take it in short
time It would be sold to Vanderbilt. The
Doctor said that he did not believe it, be-
cause Vanderbilt had told him he would
not buy the stock. Three days later the
stock was sold to Vanderbilt, and the
control passed for all time beyond DR..
Hostetter's grasp. He was overwhelmed
by this and blamed Mr.. Oliver for the
transaction, aud it is said he threatened to
get even and that he took the cali loans as
the meansof etfectinghis revenge atacriti-
cal jnncture.
It Is but Just to DIR. Hostetter TO say that |
a friend OF his denies the story entirely
and says there is not a word OF truth in it.
Among the bankers 1t is said that the |
banks we're willing to continue to carry |
the paper OF the firm, but owing TO hard
times and scarcity OF money Oliver Bros.
& Phillips were unable to raise the money
to meet the interest aud to pay their EN-:
ployes. tits said their pay rolls amounted
TO from S2O0,000 TO $25O,000 q month. and
this was too much for them to meet any |
longer.
SENATOR cAMRRoN's INTEREST.
Itis generally believed, that Senator ].
Donald Cameron is a partner in the firm
of Oliver Bros. & Phillips, and had very
large interest, having advanced large sums
from time to time to aid the firm. It is
certain that Senator Cameron and Mr..
Oliver were closely connected in business,
as they together bought large block OF
vanderbilt's South Pennsylvania road
bonds. Some time ago very large
amount OF the paper OF II. B. Scutt 4 Co.
become due. 1t was endorsed by Oliver
Bros. & Phillips. 1t is reported that SEN
ator Cameron refused to allow the firm
to again endorse the Scutt paper, but
when the reduction in wages came, and
the consequent scare among the politi-
clans, Mr.. Cameron agreed to the endorse
mentin consideration of the withdrawal
OF the notice ofreduction in wages.
II is impossible 10 guess at the liabili-
ties Of the firm. They are reported at
from three to five millions. The local
bankers say that there is about q million
or million and a half ofpaper held here,
with good collateral for almost all OF it.
Large blocks Of the paper arc held in tho
Eastern States, as far East as Aiassachu-
sets, while very large sums are carried in
New York and Philadelphia. The firm
has madc large investments in real estate,
and has an immense amount OF collateral
Of various kinds tits thought that there
is not the slightest doubt that an extern
sion will bc granted and that the firm will
pay. The banks having the greatest con.
hdence in the management Of the heads
ofthe firm will be us liberal us possibieini
their arrangements. 1t is reported that
Mr.. II. w. Oliver Is carrying the immense
block OF Pittsburgh q Western stock
which was bought to control the road
when It was thought the Erie would take
1t, but this stock will no doubt be taken
by the syndicate oi which Mr.. Oliver is u |
member, which has Joined forces with
the Baltimore & Ohio. But little exact
information could be had in the banks or
:, the places where such information is
usually obtainable, for nobody seemed to
know exactly how things stood and the
firm refused TO be seen until later in the
day.
II. W. oLtvER's STATEMENT.
At half.past o'clock this afternoon
Mr.. Harry W. Oliver was seen in his pri-
vate office, and was asked what the firm
had 10 say In regard to its affairs. By way
of reply he gave out tho following notice:
"Io Our Creditors: We are to-day COM
PEELED to suspend payments, and purpose
calling Immediately q meeting of those in
terested, TO whom we believe we can show
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