New-York tribune., 1885-01-16
JOHNJ. CISCO & SON SUSPEND
,,.n1lTIEs OVER THREE MILLIONS.

Tho so,,ure Of the banking house OF John D. "i'o'
& Son. of No. 50 Wall-st., was announced S0' IT,
aay aud an assignment made to Le"io Ai'y =,
snsnension was not known in tho 80 :. 80
nearly A o'clock in the afternoon. III ia0'' ~
NO, until 90 minutes after p III. .hat 'no
o,,.rr fIed the deed Of assignment III 'ne Oouu.y
(,Ierk.s Office. The announcement cau'e" ,s u"
>..o;.ament because the firm has not been par'icu
,:rIy nrominent IN financial matters lot seVe'ai
'"S ond hecause the recent rumOrs regarding IL
Sod an,arently been quieted. 1t caused greater
;.amant under these circumstances thanlt wouiu
.s n fo;,nre had occurred several days ago. no
.h;rtias of the firm are stated at about 10, oooooo
f which 80 600, 900 are due TO deposioois am"' @
y ;s expected, will be paid IN run: &
.aoets whose amount is unknown, consist OF ran
.ooa bonds and stocks. The assignment was ihaoo
without preferences.
The firm consisted of John A. cisco, tue oh'S SUI
of Joln J. Cisco who was the founder Oh lhe ho"'o'
and Frederick W. FoOte. Young MI Oisoo ""o
the Stock Exchange member OF the nrti' Nv no
ne the sa;lurs was sent to the Stock Exchange
Yesterday. although the deed of assignment muS'
- haen drawn long before the close OF business.
coms aouh,s were thrown the first reports Oh
,h fa;ure on this account but the neglect 10 seho
notice TO the Exchange was excused after"aiu y"
the ground that the firm had no outstanding con,
toc,s there. At the Office of the firm 1t was said
that the members had goue for the day. ou. 'no
following statement was furnished by LOWS May
the assignee A.. old
onlished banking house Of John Cisco son. ana
which xere telegraphed all over TINS eoupty th "o on
Turone have caused very severe run upon Sue . om
iSe bart Of their deposor In addition to THIS 'neS
largely interested In c the SaTs BEEN greatly depre
asS by the severe blow against the credit OF that com
,ss by as asa% a ne 81
matters with the general great pHt Of all their
creditors to assignment without hap er
the ., viii undoubtedly be paid fun
the securities can be reasso cal ssocS aPSu Pncbanre
no outstanding contracts az the o'ooA ;s
Aside from thu official statement. MT. May saio
that he had nothing to say for he had Just entered
on bis duties. He stated that the deposit habiil-
ties amounted to over So, 600, ,OO0 bnt he declined
. to cav who the heaviest dcpositors were or what
the assets would foot up. He said tnat ne "ou'u
begin the work of preparing schedules to-day out
that until be had looked further into the anars OF
the firm he preferred to make no further statemeht
about the suspension.
Lewis May the assignee, was formerly the senior
mariner of the Stock Exchange firm OF May q hing'
which was dissolved last year. Mr.. MAY was the
oss,onee of the dry goods house of Halsed. Haines
& Co., and in that position won iopu'"A "
pronpt business methods
Jobn r Dos Passos counsel of the firm and OF the
assignee said that he could give no otner informa-
ton than that afforded by the statement
of Mr. MAY. He said that the habil-
it,es to depostors would amount TO ABOUT
81 10000 and the secured debts TO banks anu
others on loans to nearly S1,5OO,Ooo. Inc toIai
labilit es we're placed by him at about $3.5OOooo.
wn,cb were represented, he said. IN first mortgage
bonds unsalable at the moment While heexpressed
tbe omnion that the firm IN ght be able to pay IN
fu, he seemed to doubt whether serious
consequences might not flow from the
failure The amount OF tho ueposi'S
was considered large by bank officers, especially III
view of the fact that the deposits had been some
what decreased in the last two weeks. Inc hin
has never had a large country business ana soue
cur,osity as 10 the names of the large depositors
was shown by Wal-st. bankers. Ihe hrn
has been identified for several years with
the Louisville aud Nashville Railroad, III
connection with Mrs Green's interest in the
pronerty. and last year the Junior member OF the
firm gas elected director of the company. 1t was
still more largely interested in the Houston ana
Texas Central Railroad of which the late John >.
Cisco was a director for some eight years. 1t was
instrumental in placing the principal bond issues OF
the company, and since the beginning
of the year has been brought
into nroninence by buying, instead
of payinga as usual, the maturing coupons "ltnh
the last ten DAYS rumors about the sovency OF the
firm have been circulated freely in Wall-st but on
the positiye denial by Mr.. Cisco that the rumors
had any foundation they had been silenced The
firm kept it's account with the National City Bank,
of which John j. Cisco was director for about
forty wears. President Tyne said yesterday that
the bank would not suffer loss by the failure.
WHAT MR. rooTE AND Mr.. HUNTINGTON SAY.
Frederick w. FOote, the junior member Of the
firm, was seen last night by TRIBUNE reporter.
He said: "The matter Is a simple one. The rumors
A. lx..,o k.neA Lotto tvAaly
ago caused run on us aud deposits were with
drawn to the extent of several hundreds of
thousands of dollars. To that was added the
action of Mr.. Huntington I'm buy
ing the coupons of the Houston
and Texas Central Company, which was a
bow at the credit of the company and prevented
us from negotiating the bonds of the company
held, or obtaining loans on them. In consequence.
We determined to make an assignment TO protect
all interests and enable us to realize upon our
assets without forced sale. 1t is no more than
virtual liquidation. and have no doubt that our
assets are sufficient to enable to pay creditors
In full"
did the Houston and Texas Central earn the
interest on ITS bondp
II cannot say anything about that; haven't
seen Mr.. Huntington yet"
Mr.. Foote declined to discuss the relations of
the firm with Mrs. Green. further than to say that
she stood on the same footing all other creditors
G. p. Huntington spoke with apparent frankuess
when asked by TRIBUNE reporter regarding the
connection OF his name with the failure. 81
know nothing about the affairs of Cisco t&
Co., but the house has always been. highly
spoken of and am sorry that this trouble has
come on them. There is no reason that can see
why the purchase of the Houston and Texas con-
pons should be considered blow at the credit of
the company. Ny connection with the matter .
simply this: lent the company money last July
to help meet its interest. and before went South
In December I said / supposed they would
need some money to pay the January
interest and as the southern Develop