The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-16
FAILURE IN NEW YORK.
Assignment of the Banking House Of John
j. Cisco & Son.


j. Cisco & Son.
NEW YORK, Jan. 15-It was officially an
nounced shortly after the close of business, that
the old banking firm of John j. Cisco & Son, SO
Wall street. had made an assignment to Louis
May. formerly of the bankers and brokers firm
of May g. King, who is also assignee of Halstead,
Hams & Co., which firm suspended some six
months ago. The firm was intimately connected,
financially, for many years, with the Louisville
e Nashville and the Houston & Texas Central
Railroad companies and it is supposed its
failure was caused by the late decline in the
securities of these corporations as well as
by the general shrinkage in values throughout
the year 1884. The senior partner died last year,
and on April l, next, the affairs of the old firm
were to be closed and everything would have
gone on as usual up to that time but for reports
that they were embarrassed, which were started
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 & Texas Cen
trail bonds, which have greatly deprecated since
the present management of the road caused the
coupons of the first mortgage bonds to be bought
by the Southern Development Company instead
of paying them direct as heretofore Although
the reports affecting the credit of the firm were
denied at the time, they led to steady and in
creasing run by depositors, and it was deemed
best for the benefit of all creditors to make an
assignment without preferences, for the purpose
of gradual liquidation. AS is generally believed
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 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
thd Stock Exchange. their liabilities being
charge at p. NJ. and no statement has yet been
made. The present partners are John A. Cisco;
son of John j. Cisco, and F. A Foote the
former being a member of the Stock Exchange
but never participating actively in the opera
tons of the exchange.
The late John j. Cisco, for long period of
years was Assistant Treasurer of the United
States at New York, and during the
his intimate friendship with bank
officials, rendered valuable assistance to Salmon
p Chase, then Secretary of the Treasury in Sc
curing loans from New York city banks. He
left Office before the close of the war, to found
the banking house which suspended to-day.
Cisco first became prominent as banker by his
success in marketing the 6 per cent
currency bonds issued by the govern.
ment in aid of the Pacific railroads.
The placing of these bonds greatly accelerated
the constructing of the roads. and ever since
then he has had a high position in the financial
world. The house, during the life Of the senior
| partner, did large investment 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 speculative way All moneys deposited
with the firm to-day will be returned to- morrow.
| Frederick w. Foote, partner in the banking
house Of John j. Cisco Il Son, was at his resi-.
! Continued on Second Page.I