St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-01-16
Oliver Bros. & Phillips, of Pittsburg,
Fail With Liabilities Amount
ing to s5,000,000.
The Failure Complete Surprise Everywhere
as the Firm was Considered
Wealthy.
A Brief History Of the Career Of One Of the
Most Remarkable Firms in the
Country.
John j. Cisco s. Son, One of the Oldest
Banking Firms in Wall Street,
Makes an Assignment.

/ following card 10 their crecllorS:
''We are to-day compelled to suspend pay
ments, and propose calling Immediately
meeting of those interested, to whom We be-
leve we can show assets amply sufficient,
with some indulgence, to pay every dollar OF
our liabilities
| The report of the embarrassment of Oliver
Bros. e. Phillips, the greatest iron firm in the
city, when ell its connections are considered,
flew about like wild fire and set the town
wild with excitement, and such an event was
recognized as catastrophe unequalled by any
previous failure. 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 i'm
mense pay roll and other necessary expense
have compelled the firm to ask for an ex-
tension somewhat similar to that given to
Graf, Bennett & Co., who failed two years
ago. There are many stories afloat as to the
immediate cause of the trouble, but in the
banks and on all sides II seemed to be the
genera! feeling that an extension would be
asked for and would be granted by their
creditors.
1t is impossible to guess at the liabilities
of the firm. They are reported at from three
to five millions. The local bankers say that
there is about a million or million and
half of paper held here with good collateral
for almost all of it. Large blocks of paper
are held in eastern states, as far east as Mas
sachusets, 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 are
not the slightest doubts that an eXteL sion Will
be granted and that the firm will pay. The
banks have the greatest confidence in the
management and of the heads Of the firm
and will be as liberal as possible in their ar
rangements.
Harry W. Oliver, senior member of the
firm, was seen by an Associated Press repre-
sentative this afternoon. He said the whole
affair was SO sudden that they had not 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 statement
would be given to the public. Every dollar
they had belonged to their creditors and he
felt confident that the assets would largely
,eeed the liabilities. Regarding the cause
oil the EN- mbarrassment numerous sensational
stories are ahoat One OF the stories, was in
effect that paper TO the amount OF $50, OOO
had been protestedin in New York.
Among the bankers it Is said that the
banks were williuG 10 continue to carry the
paper Of the firm, but owing TO the hard
times and Sc rcity Of money the firm were
unable to raise money to meet their interest
and to pay their employees. 1t is said their
pay rolls amounted TO from 100000 TO
$3.50, 900 q month, and this was too much Tor
them TO meet any longer. Bankers say the
firm have reduced their lines TO lower
point than for years, and the embarrassment
Is q surprise 10 everyone. Some attribute
the embarrassment to be caused by the pur
chase made In the Isabella Furnace company.
Not expecting the money to be called Tor, il
was unexpectedly demanded. The embar-
rassment does not affect II B. Schutt & Co.,
barbed wire works, owned principally by the
firm. Oliver, Roberts 81 Co. are wire work
ers, and are incladed.
Don Cameron's name has been mentioned
in connection with the firm, but Harry Oliver
saws. he has not dollar of interest.
THE FEELING AMONG THE EMPLOYEES.
The news Of the suspension almost caused
a panic among the employees, but when it
was stated that the extension would probably
be granted and the mills continue in opera
ton, the men set about TO devise some means
to aid the firm. meeting Of the workmen
of the Woods Run mill was held to- night, and
it was unimously decided To return to work
at the reduction which they refused last week.
Tomorrow meetings will be held at the sew
eral south side mills controlled by the firm,
and It is thought that similar action will be
taken.
John W. Chalfant, one OF the oldest iron
manufacturers Of the city, said the cause Of
the trouble was their putting too much
money in the extension OF their works, new
machinery and other Improvements. The
works are now in a most excellent condition,
and every assurance Is tha. no more money
will be needed for a long time TO come, and
notwithstanding the mills are mortgaged to a
limited extent, they are so valuable and have
such producing capacity that what stock is
on hand. book accounts and other assets,
there will be shown to be large excess Of
assets over their liabilities. he did not
think the suspension would have any effect
upon the iron market.
OLIVER INTERVIEWED.
Fl. W. Oliver was seen late last night. lie
looked decidedly careworn, but displayed no
hesitancy whatever in expressing himself on
the situation.
Every dollars worth Of property we own,"
said he, ''will be held for our creditors"
''when will q meeting Of the creditors be
heldl''
'.Just as soon as we can get them together.
them now"
''would you care to say anything about
the more important features Of the state
mentF'
''It would not be right for me to do so at
present. The creditors are the interested
parties, and they should first be made ac-
ouainted with our affairs. After the situa-
ton has been explained TO them we will be
in position TO talk with more freedom 10
the newspapers"
''Hsve you anything TO say regarding the
causes which led 70 the suspension -
II hardly think It necessary 20 make any
explanations on that point. The people Of
the country are not totally blind 70 what IS
going or, snd the condition Of business for
the last year or more contains enough peril
nent suggestions.''
'sHOT about the liabilities Of the frmF'
San can say Is that We have ample as
sets 10 psy ever dollar We owe, which We
will certainty do. We have enough, eoDtin-
ned Mr. Oliver. land the public need have
no fears about our meeting every obliga-
tom
HIsToET or TIE Y1RX-
The history Of the rise Of Oliver Bros. q Phil
lips is one OF the most remarkable IN the annals
Of the country. Seventeen years ago u. W
oliFsr. Jr-. john ". Phillips and wn- J. Lewis
entered into eoparrne-ship for the Manufacture
Of iron. Divers business career up 10 Dsesn-
( Der %. 1867, nsd embraced the performance Of
the duties of shipping clerk FOR CroG Bennett
and th- slli,g Of eIerkship Under Wra- shaw.
n the employ Of the PenDsTlvani4