The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-10-10
A HEAVY DEFALCiTION.
A MEMBER OF A CHICAGO PACK.
ING FIRM ISSUES
Bogus Warehouse Receipts for $780,
OO0-The Banks the Heaviest
LOsers-In Canada.

CHICAGO, ILL, October 9.-An altar
noon paper says: n. M. Neald, a part
nsr in the we'll known packing house
Of J. G. Ferguson & Co., is ia Canada.
He has Issued bogus warehouse re-
ceipts fer people aggregsting $1,000
He has practically burst his firm. The
loss viii fall altogether on the banks,
500, coo on a single New York hank
The b lnbs here vino loss by 1t
said prominent dir ctor, "are all
itch and will not know the Ices, Toe
worst loss is on a New York institu
ton. Neald left for Canada night be-
fore last, ard no enc has heard from
him." Neeld was a fine looking man
OF about As years. He YVES the man
aging partner in the finn Of j. G. Fer
gus9n & Co., which was very old
and rich one, and came originally
ON Indianapolis. He has been
big speculator on the board and in
stocks, and has been wrong for a long
time. The biggest loss has been in
Wall street.
No particulars al all are obainable
concerning the failure. Mr.. Fergu-
son is locked in his private office snd
refuses TO make any statement what
ever until later in the day, after he
has had I'm opportunity to ascertain
exactly the extent of the disaster that
has overtaken the finn.
TIE firm OF j. Q. Ferguson & Co. is
an cd one and stood high. They
owned a warehouse, and this was
made "reQular' short time ago 1t
is ST. ted that MIR. Ngald issued a mum
Der of fraudulent warehouse receipts
snd that the Ohicsg> and New York
banks leaned money on them to the
extent above sated. Neald WIS one
of the directors Of the Chicago Board
of Trade. The firm was composed of
J. q. Ferguson, Ed Ferguson, q son !;
Goodbody, Of Liverpool; N5aId, a SON.
in-laW, and Mr.. Howarj, also a son-in-
law. The latter had his headquane s
at NeW York, and 'ftom that place
managed the shipments. For this
reaaon some banking wss done there.
The New York Corn Exchange Bank
is the heaviest loser, being 100000 in
the hole, without dollar Of security.
The heaviest losers hers are the banks
in this order: The First National,
The Metr0po itau, The Illinois Ma
tional and probably a number OF
others. The Continental is the email
est loser among tue banks. II is ex-
planned that Neald was not a shrewd
business man. He wsS tbs cause OF
the failure Of his fsther-ir-lsw some
yeIrs ago. Mr.. J. G. Ferguson, how.
ever, was very wealthy aud Leaned
money to start the house here. Sac
now holds a mortgage on it. TIE
defalcation grew, 1t is believed,
through a year, and it is presumed
that it started with no really dishonest
motive. But the buyers receipts were
soon beyond his control, and before
he left he sunk everything out Of
sight.
The house OF &c. Ferguson & O.
is one tn 1t has been ia existencs fol
twenty five years. 1t YVES in existenca
before Chicago WIS the packing center
Neald married the daughter OF J. O.
Ferguson, whom he has now ruined
by bis crookedness. He and the eon
OF tie senior Ferguson, Edward
moved here and opened a hous3 al
the yards about ten years ego Nesld
hes been the managing partner ever
since. For number OF years be really
has bean the head of the fl m. They
did a very large business with
England ana rated as high as any firm
in the trade, although of course, moi
doing business en- any such scale al
one or two of the others. 1t ID the
worst that has ever happened in the
Chicago trade.