Savannah morning news. [volume] (Savannah) 1868-1887, 1885-01-16
TWO BIG FIRMS ASSIGN.
OLIVER BROS. & PHILLIPS STOP
PAYMENT AT PITTSBURG.


PAYMENT AT PITTSBURG.
An Extension Expected to be Granted
by Their Creditors-The Liabilities
Between $3,0OO,OOO and So 900 900,
and the Assets Probably Greater-The
Cisco Bank, at New York, Closes
Other Mercantile MisfOrt lnes.
PITTsBURG, Jan. 15.-This afternoon
Oliver Bros. 81 Phillips and the Oliver &
Roberts Wire Company Limited issued
the following card to their creditors:
''We are to-day compelled to suspend
payment, and purpose calling immedi-
ately meeting of those interested, to
whom we believe we can show assets
amply sufficient, with some indulgence,
to pay every dollar of our liabilities
Reports of the embarrassment of Oliver
Bros. * Phillips, the greatest iron firm in
the city, when it's connections are CON
sidered, flew like wildfire and set the
town agog with excitement. Such
an event was recognized as a
catastrophe unequaled by any previous
failure, and the great popularity Of the in
dividual members of the firm made it all
the more to be deplOred. The truth of the
matter seemed to be that dull times, an
immense pay roll and other necessary eX-
penses have compelled the firm to ask for
an extension somewhat similar to that
given to Gratfen, Bennett 81 Co., who
failed two years ago. There are many
stories atlOat as to the immediate cause of
the trouble, but in the banks and on all
sides it seemed to be the general feel
ing that an extension would be
asked for and granted by the creditors.
1t is impossible to guess at the liabilities
of the firm. They are reported at from
$3,OOO,OO0 to $5,000,000 Local bankers
say that there is about S1,000,000 or ST.
100000 of paper held here with good col
lateral for almost all of it. Large blocks
of paper are held in the Eastern States as
far East as Massachusetts, while very
large sums are carried IN New York and
Philadelphia. The firm has made large
investments in real estate, and has an
immense amount of collateral of various
kinds. 1t is thought that there is not the
slightest doubt that an extension will be
granted and that the firm will pay. The
banks have the greatest confidence in the
management of the heads of the firm and
will be as liberal as possible in their
arrangements. Harry W. Oliver, senior
member of the firm, was seen by an AS
sociated Press representative this after
noon. He said that the whole affair was
so sudden that they had not had time to
collect their thoughts. He was unable
to give figures to-day, but just as soon as
it was possible full and complete state
ment would be given to the public.
Every dollar they had belonged to their
creditors and he felt confident that the
assets would largely exceed the liabili-
ties.
Regarding the cause of the embarrass-
ment there are numerous sensational
stories afOat, but most Of them have been
denied. One of the stories was to the
effect that paper to the amount of $4,000
had been protested in New York among
bankers. 1t is said that the banks were
willing to continue to carry the paper of
the firm, but owing to the hard times and
scarcity Of money, the firm were unable
to raise money to meet the interest and
pay their employees. Their pay roll is
said to have amounted to from 5000, 900 to
$3.50 900 per month, and it is said that this
was too much for them to meet any
longer.
The news of the suspension almos5
caused panic among the employees, but
when it was stated that an extension
would probably be granted and the mills
continue in operation the men set
about to devise some means to aid the
firm. A meeting of wOrkmen was held
tonight and it was unanimously decided
to return to work at the reduction which
they refused last week. Tomorrow a
meeting will be held at the several South
Side mills controlled by the firm, and it is
thought that similar action will be taken.
CIsCO's BANKING FIRM ASSIGNS.
New YORK, Jan. 15.-It was officially
announced shortly after the close of bust
ness that the old banking firm of Jno. j.
Cisco & Son, at No. 80 Wall street, had
made an assignment to Lewis MAY, for
merly of the bankers and brokers firm of
May a. King, who is also assignee of Hal
stead Haines Il Co., which concern sus-
pended some months ago. The firm was
intimately connected financially for many
years with the Louisville and Nashville
and Houston and Texas Central Railroad
Companies, and have suffered from the
late decline in the securities of these cor
pOratiOns, as we'll as the general shrink
age in values throughout the year 1884.
The senior partner died last year, and on
April 1 next the affairs of the firm were
to he closed up, and everything would
have gone on as usual up to that
time, but for reports that they were en-
Darrassed which were stared about ten
days ago and telegraphed throughout this
country and Europe. These reports grew
out of the fact that the firm was understood
to be largely interested in Houston and
Texas Central bonds, which have greatly
deprecated since the present manage
ment of the road caused the coupons of
the first mortgage bonds to be bought by
the Southern Development Company, in
stead of paying them direct as hereto
fore. Although the reports affecting the
credit Of the firm were denied at the time,
they led to steadily increasing run by
depOsitOrs, and it was deemed best for the
benefit of all their creditors to make an
assignment without preferences, tor the
purpose of gradual liquidation of their
fN,sr Alz.-
afternoon, the matter is rather
in the nature of liquidation
than failure, as it is stated that all
depOsitors will be paid in full as soon as
the securities can be realized upon.
This view of the case is
strengthened by the knowledge that |
the firm always has been rich, and also |
by the fact that no preferences are given, |
not even to the large estate of the late |
senior partner. The firm has no contracts |
on the Stock Exchange, their liabilities |
being chiefly to depositors. The as
signee only took charge at 3 o'clock |
this afternoon, and no state |
ment has yet been made up. The present |
partners are John A. Cisco, son of John |
j. Cisco, and f. A. FOOte, the former |
being member of the Stock Exchange, |
but never participating actively in the |
operations of the Exchange.
lue ldJe JOuH y. OlScO lOF a long period |
of years was Assistant Treasurer of the |
United States at New York, and during /
the early stages of the late war, by his |
intimate friendship with bank officials. |
rendered valuable assistance to Salmon /
p. Chase, then Secretary of the Treasury, |
in securing loans from New York CITY |
banks. He left the office before the close |
of the war to found the banking house |
which suspended to-day. Mr.. Cisco first |
became prominent as a banker by his |
success in marketing the per cent. cur
rency bonds issued by the government in |
aid of the Pacific railroads. The placing /
of these bonds greatly accelerated the /
cOnstruc tion of the roads, and ever since |
the firm has had a high position in the |
financial world. The house, during the |
life of the senior partner, did a large in |
vestment business! and capitalists, both |
large and small, consulted Mr.. Cisco's |
Judgment. In years gone by the firm did /
an enormous business in Reading, but of |
late have had no connection with the /
stock market in speculation. All the |
moneys deposited with the firm will be /
returned tomorrow.