Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-01-16

EARcE FIRMS sxBARRAssED.

DkHt - An1&8susrmss
IBy telegraph 70 the Dispstch.l
PITTSBURGH, PA, January i5.--
This afternoon Oliver Brothers Il Phil
lips and the Oliver a Roberts Wire
Company Qimited) issued the following
card 10 their creditors :" We are to-
day compelled to suspend payment, and
propose calling Immediately meeting
| Of those interested, TO whom, we be-
licvc, we can show assets amply suffi-
cient, with some indulgence, to pay
every dollar Of our liabilities"
Reports Of the embarrassment OF
Oliver Brothers & Phillips, the greatest
| iron firm in the city when its conncc-
tons are considered, few like wildfire
and set the town agog with excitement.
| Such an event was recognized as ca
tastrophe unequalled by any previous
failure, and the great popularity of the
individual 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 payroll, and other
necessary expenses have compelled the
firm to ask for an extension somewhat
similar to that given to Graf, Bennett
& Co., who failed two years ago.
There are many stories shoat as to
the immediate cause Of the trouble, but
in the banks and on all sides il seemed
to be the general feeling that an extern
sion would be asked for and granted by
the creditors. 1t is impossible to guess
at the liabilities Of the firm. They are
reported from 90 ,000, 900 to $4,000, 900.
Local bankers say that there is about
81 900, 600 or 81 500, 900 of paper held
here, with good collateral for almost all
of it. Large blocks of paper are held
in the eastern States as far east as Mas
sachusetts, 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.
II is thought that there is not the slight
est 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 Associated
Press representative this afternoon. He
said the whole affair was so sudden
that they hadn't time to collect their
thoughts. He was unable to give the
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 liza
bilities.
Regarding the cause of the embar-
rassment there are numerous sensa-
tional stories ahoat, 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 payroll is said to
have amounted to from $4,000 TO
$3.50, ZOO month, and it is SAID this
was too much for them to meet any
longer.
An Old Banking Firm In New York Fails.
NEW YORK, January 15.-It was
officially announced shortly after the
close of business that the old banking
firm of John j. Cisco & Son, at SO
Wall street, had made an assignment to
Lewis May, formerly of the banker and
brokers' firm of May & King, who is
also assignee Of Halsted, Haines &
Co., which concern suspended some
months since. The firm was init
mately 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 securi-
ties of these corporations, as well as a
general shrinkage in values throughout
the year 1884. The senior partner died
last year, and on April lst next the
affairs of the old firm were to be closed
up, and everything would have gone on
as usual up to that time but for re-
ports that they were embarrassed,
which were started about ten days
ago and telegraphed throughout. this
country and Europe. These re-
ports grew out Of the fact that the
firm was understood to be largely inter
ested i'll Houston and Texas Central
bonds, which have greatly deprecated
since the present management OF the
road caused coupons of the first mort
gage bonds to be bought by the South
ern Development Company instead of
paying them direct, as heretofore. Al
though the reports affecting the credit
of the firm were denied at the time,
they led to a steady and increasing run
by depostors, and it was deemed best
for the benefit of all their creditors to
make an assignment without preferences
for the purpose of gradual liquidation
of their affairs. As is generally be-
lieved this 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 the
large estate Of the senior partner. The
firm has no contracts on the Stock Ex-
change, their liabilities being chiefly to
depositors. The consignee only took
charge at p. NJ, and no statement
has yet been made up to the present.
The partners are John A. Cisco, son Of
John j. Cisco, and +. a. Foote, the
former being a member OF the Stock
Exchange, but never participating ac-
lively in the operations of the Ex-
change.