Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1885-01-16
HEAVY FAILURE.
The Banking Firm of John J. Cisco 4
Son Makes an Assignment.
NEW YoRK Ian TX

NEW YORK, Jan. Is.
JohnJ. Cisco & Son, bankers, 50 Wall
street, filed an assignment this afternoon
without preferences, to Lewis NAV, and Mr.
Nav, when asked for statement in regard to
the suspension, said:
The rumors started ten days since about
this house, and which were telegraphed all
| over this country and Europe, have caused
very severe run upon them by depositors.
In addition to this they were largely interest
ed in bonds of the Houston & Texas Central
railroad, which have been very greatly depre-
ciated BY a severe blow against the credi, of
that company caused by the action of c. p.
Huntington in purchasing coupons of first
mortgage bonds. ALI the depositors will
undoubtedly be paid in full as soon as the
securities can be realized upon. The firm
has no outstanding contracts of the stock en-
change"
MAY said the firm owed S2,50O, 900 to the
depositors. He could not say who were the
largest depositors nor estimate their number
As is generally believed, the matter is rather
in the nature of liquidation than failure. This
view is strengthened by the knowledge that
the firm always has been rich, and also by ie
fact that no preferences are given. The
firms liabilities are chiefly to the depositors.
The present partners are John A. Cisco and
F. A. Foote, the former being member OF
the stock exchange, but never participating
actively in the operations of the exchange.
The late John j. Cisco was formerly assistant
treasurer of the United States at New York,
and during the early stages of the rebellion
he rendered valuable assistance to Slocum 2
Chase, then secretary Of the treasury, in
| securing loans from the city banks.
Frederick w. Foote. partner in the bank
ing house of Jno. j. Cisco & Son, was seen
tonight at his residence. There's nothing
discreditable in the action of the firm" said
Mr.. Foote. "The rumors of the last ten
days, which have been spread broadcast
throughout this country and Evrope in rels
ton TO our firm have,used me up. No house
could stand under the same circumstances,
If Mr.. Huntington had not defaulted on the
Houston & Texas Central coupons on Jan. l.,
we might have been all right"
C. p Huntington was seen at his residence,
6j Park avenue. II don't see why they
should connect me with the failure, said Mr..
Huntington. ''In regard to the coupon busi-
ness, the whole thing lies in q nutshell. The
coupons of the Houston & Texas Central, due
Jan. 2st were bought by the Southern De
velopement company, of which am general
agent. To go back little, when we bought
the Morgan companv's steamboats, and rail
roads, we acquired $40, 900 worth of Houston
& Texas Central stock. In this way my
name was connected with that road. The
bonds of that road heve not been paid, and in
consequence of the depreciation and shrink
age, suppose Cisco & Son, who are reported
to have held considerable stock, have been
hampered. l think the road will be all right
in time. We purchased about S275,000
worth of coupons at face value, which we had
a perfect right to do. That's all | have to
say about it,"