New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-10-10
NEARLP HALF A MILLION GONE.
FAILURE OF FERGUSON & co. IN CHICAGO.
THE RESPONSIBLE MEMBER OF THE FikA SUP
POSED TO RE IN CANADA.
THY TELEGRAPH TO TRIBUNE

IBY TELEGRAPH THE
Chicago. Oct. 9.-It became known early to-
day In banking circles that ~ y. Need, the respopspe
head OF the large commission house OF J' u fersuson
Co. had disappeared and 1t Sas soon aiterwaru KNOWN
that he had gone to Cansda. The hrm though IL had
opce failed had excellent credit and drawing upon tnst
tc the utrost and IN addition issuing lot OF paper On
irregular receipts. Need coileeteo MI u"
ready money he could and departed lie IS supposou W
have stolen 100000. II Is estimated that tue oanNoi
this city and York losers to about that amount
How much he succeeded in carrying away with MIN -
o,,v cop,ectured Tie commission house ~as founded
bv J. c. Ferguson at indianapolis. and was removed
here with capital OF 100000. The hrm fal'ed soino
wears ago. but BY the all o. the wife oi j. u ferF"'"
who had personal estate 1t succeeded In paying III
claim. and afterward became prosperous Ihe hrm oid
large foreign CON and shippi business nav
In, hronch oec.s in New.York and Liverpool. Mr. Fer
ouson rsred two years ago Neeld his son n-iaw'
opd Edward Ferg,son his continued TIE ouSihess
under the established firm namc' lDe "aio"o"so
receipts held by the banks, 1t was acRno"ie"s' "o
cause the absonto failure OF the mousse. ""eo '"o
t,uro heyan 10 te disclosed occasioncd tue widest
consternatior in the business circles ihne'ia'oH
Affected Tho claims that have cone to light against tno
firm amount To S35O,0O0 principally for borrowed
mou.v and some say the amount Is much larger Ine
Corn Exchange Bsnk OF New YORK, Is sari 10 "oi"
s,oo 600 The Bank OF British North America repre-
sented by Chicago agency, holds S7o.ooo Toe 0onu'
,nta National Bank OF Chicago holds Sooooo' ana 'Ho
Fra National Bank OF holds the san amount
r N.,ron,,itan National Bank Is involved to tue
tent NJ In speaking OF the failure the pr'si-
don't OF the Continental National Bank was not dsposou
10 tell the the Institution was mVoVeu, t"'
mn being assured that the other banks hau to" 'uc
mounts OF their losses lie said that the bank had heu
th as notcs TO the amount Of $4,000 but upon some
~ payrnents been indoIsed and thc loss "oo
, ne s large a, tue sum given. Tie said that the urn
had 81 lendid reputation for integrity ana honesty al"
II was not loss OF tue money that ~ouiu oo io' 90
mucn as having ones confidence SHAKEN INC nru "'u
a balance ON deposit which would be retained he ou
NOT think tho embezzlement wonld exceed SiooOoo Al
the Metropulltsn Bank tho cashier Was not ihch"ou
IN ,aIk hut finally admitted that the firm owed the oahK
500 vOO There was small balance In the Dahk 10 'ne
firms credit, aud this had been attached anu ~ouu
reluce the loss somewhat The BANK hau also cno'oe
collection OF worthless receipts. representative oi
declared 1t to be tie most disgraceiui failure
,rco ,he flight of the president OF the Sate Savings
Institution ,, ...o
N.ed. ths fugitive was tall and fine looking, agree
oble and courteous manner. He was one OF tue i'''
men TO be suspected OF crookeiness IL was "
rss that the money had been raised on bogus
re,epts but It Is believed that most OF the recePs
held by the banks are genuine ana tnaI t"o p'opoy
by them, 9oo00o0 pounds ot 'nes Oh
, ,o,.rr t,ons has been stolen Need has beon specu
lpg dear erately for tiOe. aud II seems has oeeh
raising money pay his losses from sales OF propcS
already pledged to the banks When there Was no'nns
let 10 sell he quit The warehouses OF the urn arc ouha
TO ave been completely gutted Tie banks knew yes
,srdav that somethiug was wrong. and few men on
,cho mad an mixing OF an impending explosion, but
the announcement the facts TINS morning was ,o'a
smrnrse 10 the members. Neeld has been wrong Oh
nork and stocks lOCg whie. aud latterly his
onarat,ons we're on a large scale Hs was making a
oasn.rate struggle to save himself It's not generally
HsIi.vcd mat he took large with him The ware
house OF the firm is mortgaec 'or s2Oo0Oo 70 Nrs =.
rersuson When visited to.day It WAS found to contan
onv a few bags OF salt. When Neeld starter 10 Cahada
ha wife went with him. ,,. -
n, nrn, w,s composed OF j. C. Ferguson, Edwarl Fer
onson son (ioodbody, OF LverpooNeed, son'h-iaw;
and Mr. Howard also son-ln law. Inc i later % nsu
ased the shipments For that reason so'ne oanSns was
dons there Need a director OF the Board OF Irsde
\ ~ Fercuson was tu condition TO talk to-day lac
was in a terrible state OF ment, anguish Wnen ashea
about the truth OF the reported hignt OF Neei ue
he had 10 time Investigate the affair." AZ soon Us tn
couId be done he wouI DO willing to TALK Out DOW ne
Ala nor know where Neeli WIS, nor did he KNOW any
thing about the embezzemont