New-York tribune., 1885-01-16
PRICE THREE CENTS
A GREAT IRON FIRM FAILS.
SUSPENSION OF THE OLIVER BROTHERS
GENERAL DEPRESSION IN BUSINESS cRIPPLEs THEM
-ExPECTING TO PAY EVERYTHING SOON.
HoR n

GENERAL DEPRESSION IN BUSINESS cRIPPLEs THEM
-ExPECTING TO PAY EVERYTHING SOON.
Tsr TELEoKAPH TO THE rRBUNE.i
PrTTsBURG, Jan 15.-The formal announcements
Of a suspension of payment to-day by the firms Of
Oliver Brothers and Phillips, although 1t fol-
lowed well defined rumors that tho firm
was financially embarrassed. fell like
thuuderbolt on the community. Out
side of the 1000 wsrkmen who are Interested
in the prosperity of the firm, all the business men
in the two cities seemed to think that tho
news directly affected them and male no at
tempt tn conceal their astonishment and alarm.
Many wild stories have been circulated one was
that Dr. Hostetter had precipitated the suspension
in order to be revenged II. w. Oliver for giving
Mr. Vanderbilt control of the Pittsburg and Lake
Erie Railroad. Another was that Senator
Cameron the paper Of the hrm
and had refused to renew his Endorsement.
At the office and warehouse of Oliver Brothers q
Phillips there visible indication of the mis-
fortunes of the firm. Affairs were apparently NOV
ing as usual, trucks were backed against
the curbs and employees were hurrying
hither and thther on the first floor engaged
in the performance of their ordinary duties.
TALK WITH H. W. OLIVER. JR.
After the announcement of the suspension, II. w.
Oliver, Jr., was seen at his Office by reporter He
looked pale and jaded but seemed cheerful and
spoke courteousy, though IN a strangely subdned
tone of voice. His eyelids frequently drooped
wearily while he was speaking. and be showed
plainly the effect of the all-night consulta-
ton over the affairs Of the firm, and the worry OF
the day.
81 will tell you all can at present" he said,
but that will not be much. Everytt ing We pos
sess is in the hands of our creditors; nothing will
be held back. We are engaged in going over our
books to ascertain exactly where we stand.
We shall cali meeting of our credi-
statement of our affairs. The issue will then rest
entirely with them I believe that we can pay
every dollar we owe If there is no disposition
shown to crowd u.s."
"Can you state the amount Of your liabilitiesi"
al cannot, at present"
Twill you talk as to the cause of your embarrass
menti"
"No, sir; everybody knows what has been going
on in the IRON and steel business during the past
two years. We have prepared the following state:
ment for publication which expresses. about ell
that we can say just now" -,
lowing:
To our creditors: We to-day compelled to suspend
payment and propose calling Immediately meeting OF
| sets amply sufficient, with some Indulgence, to pay
| every dollar Of our liabilities
OLIVER & R. jBERTs WIRE Co. ulmtted-)
| Mr. Oliver further stated that the embarrassment
was q surprise to him. He denied that United
States Senator Donald Cameron had any interest in
the firm or that Dr. Hostetter had prec iDtated tho
| risis.
| THE SUSPENSION DUE TO THE GENERAL DEPRESSION
IN BUSINESS.
The absence of statement from the Messrs. Oil
| yer explaining the cause of their embarrassment
| gave excuse for the circulation Of many
| wild stories that purpor;ed to be
| explanations. Throwing all this to ono
side it can be stated that the general
depression in business is alone re-
sponsible. During the past two years
| the firm, confident that the development of tho
material resources of the country must continue
| rapidly and that any duIness would not
extead over long period, invested
largo sums of money in the pur-
chase of property and the development Of
plant. Among the most important items
of expenditure on this account were the re-
building on a magnificent scale of the OH
yer Wire Works, which were partially
destroyed by fire: the building of mill for the
manufacture of steel by new process,
large additions to the Tenth
ST. mill and factories and the lease
or purchase Of the old superior rail
mill in Allegheny. There never has
been home market for the special.
ties manufac ured by the drn. THIS
together with the fact that the depression
was greatest in the localities where il expected TO
sell the bulk of its product, made its posi-
ticn more annoying than that of any firm OF
large capital in the city. There Is not
the slightest doubt among well informed
business men, however that the firm
would have surmounted these difficulties had itnos
been for one other circumstance. About three
months ago the bank IN this city that heid; @ its
number of notes would be renewed. ms
so%Psd ,rd the OF wSieh
were well secured, and which were expected
to be foated until business revived;
ordinarily the firm could have raised
and unexpected drain in the midst of season OF
depression, crippled the firm seriously, and was
the immediate cause OF the suspension. :,
The Liabilities and assets OF the firm were dis.
cussed in all parts OF the city to-day as If they were
cummoD property. Guesses of the widest character
imaginable were palmed Oft statements that
could be relied upon az reasonably ac:
curate These gave the liabilities as being all
the way from 81 900 900 to $4,000. o00 The assets
CcS Ss5' to made s7odSooo range 1Fs Wss
remarkable that every body, no matter how
far their. estimate was from the facts:
not sacrificed. would much more than make
good the statement of the firm, that there was
enough. to make good every dollar. n, AS n; W; ";
the liabilities to-day, no reliance can DC placed on
figures thrown about the street.
FRIENDLY ACTION OF wORKNEN
The news of the suspension almost caused panic
among the employees. but when 1t was stated that
an extension would probably be granted and tho
mills continue IN operation, the men set about TO
devise some means to aid the firm. meeting OF
the workmeu of the Woods Run Mill was held to-
night and It was unanimously decided To return "
work at the reduction which they. refused last
week Tomorrow meetings. will be held at tho
several South side mills controlled by the hrn, ana
Recently Cozad's Title Insurance Cem-
many made record of the mortgages