The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1885-07-24
JOHN RoAcH's FAILURE.

JOHN ROACH'S FAILURE.
The Great Shipbuilder Makes an Assign
ment for the Benefit of His Creditors
He Lays the Blame on the Attorney
Generals Late Decision as to the Dolphin
Secretary Whitney Gives His Views of
the Failure-The Government VIII Not
Lose Anything.
New YORK. July 20.--1ate Saturday
afternoon notice of assignment was filed
in the County Clerk 8 office by John Roach,
the well-known ship-builder. About the
same time notice was posted at the iron
works on East Ninth street to the effect that
employees would be paid on Monday by Mr..
Mooney, Roaeh's book-keeper, and
that the works would be closed till
further notice. George NJ. Quintard
and George E. Weed are named assignees,
and preferences are given to the
amount of 1923, 217.7S. The preferred
creditors are William Rowland, of New
Brunswick, N. j., 62,217.1S; the Mechan-
les and Traders Bank, of Brooklyn, $780,
600, and P. w. Gallandet & Co., $40, 600.
Shortly after the notice was posted at the
works Mr.. Roach, accompanied by his
two sons, Garrett and Stephen, left
for the ship-builder's place on the
Sound Mr.. Garrett Roach said in
answer to questions that the compli-
cations arising from the recent decision of
Attorney General Garland had induced his
father to place all his property in the hands
OF trustees, so that the interests of all cred
itors might be guarded. Mr.. Quintard, one
of the assignees, said the assignment had
been surprise to him. There was no doubt
as to its being due to Secretary Whitney's
action in the case of the Dolphin, and he
(Quintard) thought Mr.. Roach feared SIM
liar action on the part of the Secretary
In regard to other contracts. There was
500, 900 owing to Mr. Roach for repairs on
the double-turret monitor Puritan besides
money on the three cruisers, the Atlanta,
the Boston and the Chicago. He believed
there was 1923, 900 due on the Chicago and
$4,000 each on the Atlanta and Boston, and
uncertainty as to payment of these
amounts was the cause of the assignment.
MIR. Quintard thought Mr.. Roach's property
was sufficient to pay all claims He added
that Mr.. Roach was completely broken
down physically. M. Aaron j. Vanderpoel,
one OF the great ship-builder's lawyers said
his client was a very sick man, but he was
sure every creditor would be paid in full,
as Mr.. Roach could pay two dollars for ev-
cry one dollar he owed. Mr.. Vanderpoel
refused to say anything as to Mr.. Roach's
total liabilities.
CHESTER, Pa, July 20-The news of
the failure of John Roach caused consid-
cradle excitement here, where his solyency
had never been questioned. Up to within
a year ago his weekly payroll was never
less than $4,000. Now it is about
$1,000, but this will be reduced to-day,
when four hundred men will be laid
off nnIv l.
to finish the Mallory ship Comal. Repre-
sentatives of the Winchester Company
say the ship-yard was separate corpora
ton, and. was not included in the assign
ment. The yard will be affected, however,
and as Mr.. Roach is large stakeholder in
the Cheshire Rolling Mills, blast furnace,
and Combination Iron and Steel Company,
located here, it is difficult to foretell the
result on these places. Work on the
cruisers Boston and Chicago and the mon
itor Puritan will virtually be suspended.
NEWPORT, r. l., July 20.-Secretary of
the Navy Whitney, speaking of the assign
men of John Roach & Sons, said last night:
II must admit that | was very much sur
prised to learn of the assignment of MI.
Roach, and / am sorry for it, yet do not
see how the Navy Department of the Gov
eminent is in any way responsible. As
matter of fact, there is only be-
tween $15, 900 and $685. difference be-
tween the Government and MI. Roach.
All he could connect the Government
with i'll the matter is this: He would say:
THE Dolphin is ready and the Government
refuses to receive her, and [ can not get my
SIS, 900 or $20,000.' Now whether that
would cause the suspension of a man like
that, [ can not tell you. In the matter of
the assignment and the individuals pre-
ferred, it is clear that the Government is
protected for the reason that we hold the
bondsmen whom Mr.. Roach has given the
preference" The Secretary said there was
no reason why the other contracts should
not be proceeded with.
Brddstleet's reports say that prior to
starting in business on his own account
John Roach was foreman of the Allaire
Works. He had small capital to begin
with, but his old employers recommended
ton helped him to moderate credit, and
his natural force soon gave him prominence.
His lack of method and neglect of business
obligations for some years of his early ca
reer led many to undervalue him, though
his gains during and shortly after
the war We're Undoubtedly large. In
1867 he purchased the Morgan Iron Works
for about 100000, in 1868 the Neptune
Works for $3.50, OOO and in 1870 the Frank
lin Forge for $125,00O, and also large
property at Chester, Pa, where he subse-
quently putin operation the extensive works
known as the Delaware River Iron Ship
building and Engine Works. of which cor
pOration Mr.. Roach was President and own
er. 1t was capitalized at $750,000. The
panic of 1878 found him owing about $780,
600, but his resources were equal to
the occasion, and his statement in Septem-
Der, 1884, showed assets of $3, 205, 900;
mortgages and other debts, 1926, 900. In
1876 rumors of his failure were extensively
circulated, but were false. He then stated
that he was worth from 81, 100000 to 81,
900, 1000 above everything. In September,
1884, he was quoted as saying that he was
worth upward of So, 100000 clear. Though
the firm name is John Roach & Sons, John
Roach is the sole proprietor of the busi-
ness