St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-10-10
BANKS BADLY BITTEN.
Failure of Chicago Packing House Firm
With Liza .litiss of Halfa
Million.
The Managing Partner Plees to Canada
Alter Issuing Numerous Bogus
Warehouse Receipts.
oaIy 500 Bags of Salt Found TO Cover
the Enormous Indebted
ness he Left.
EeveraI Chicago and New York Bank
ers Let in For Very Large
Amounts.
4 Bad Failure.

Bad Failure.
CHICAGO. Oct. On. NJ. Neeld, manag-
no mariner in the We'll known packing
house of j. o. Ferguson x CO., is alleged
20 be in Canada having issued $500, 600 in
noguS ware house receipts. The loss will
fall entirely on the banks-a New York
bank being in Tor 500, 900. The Chicago
banks which lose are all rich. Neeld is
said to have left for Canada on Thursday
night. He was IS years OF age.
He was a big Spectator on the
wrong side of stocks. Ferguson re-
fuses to make a statement. Neeld was
director of the board of trade.
The firm was composed of J. G. Fergu-
son and Ferguson 81 Son; G0oQbody. or
LIVERPOOL: Neeld, a son-in-law, and Mr..
Howard. also a son-in-law. The latter had
his Headquarters at New York, and from
that place managed the shipments. For
that reason some banking was done there.
The New York Corn Exchange bank is the
heaviest loser. being 500, 900 in the hole.
without dollar of security. The heaviest
losers here are the banks, and in this order:
The First National, the Metropolitan, Hill
nois National and probably number of
others. The Continental is the smallest
loser among the banks. 1t is explained
that Neeld was
NOT SHREwD BUSINESS MAN.
He was the cause of the failure of his
father-in-law some years ago. Mrs. j. e.
Ferguson. however, was very wealthy, and
loaned money to start the house here. She
now holds mortgage on 1t. The detalca-
ton grew, it is believed, through year,
and it is presumed 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 slgnt. The
house of j. c. Ferguson d Co. is one that
has been in existence for twenty-five years.
1t was in existence in indianapolis before
Chicago was the packing center. Need
married the daughter OF j. c. Ferguson,
whom he has now
RUINED BY HIS CROOKEDNESS.
He and son of the senior Ferguson,
Edward. moved here and opened house
at the wards about ten years ago. Need
has been the managing partner ever since.
For number of years he really has been
the head of the firm. 1t did a very large
business with England. and rated as high
as any firm in the trade. although, OF
course, not doing business on any such
scale as one or two other houses. 1t now
appears that the firm had lately ceased
active operations in killing hogs, and that
the storage receipts were either fradulently
issued, or else that the property covered by
them had been removed and converted into
money, which was either Squandered on the
board of trade or carried away. The bank
ers were somewhat reluctant to talk about
the matter this afternoon. The blow was
unexpected, and they had hardly time to re-
cover their breath. The manager of the r.
G. Dunn & Co. Commercial agency, said
that ]. c. Ferguson & Co. had been
DOING THEIR BUSINESS
principally through the Exchange National
bank at the stock yards, which has more
intimate business relations with the First
National bank of Chicago than with any
other. The agency refused to give the
rating of the involved packing firm, except
to say that it was very good and that
$500. 600 might cripple it. but it would not
necessarily cause complete failure. The
losers. of course. are very reticent, but it is
known that the following banks have suf-
fered: Corn Exchange, of New York;
First National, of Chicago: Metropolitan,
of Chicago: Bank of Montreal of Chicago;
Bank of Illinois. of Chicago; Continental.
of Chicago, and the British Bank of North
America. 1t is also said that some of the
Boston banks were stuck. It is said that
the First National bank here is
THE HEAVIEST LOOSER.
About $500. 600 is divided among Chicago
banks. At o'clock to-day, Secretary
Stone. of the board of trade, declared that
the warehouse receipts of j. c.. Ferguson
d Co. were irregular" Neeld had, OF
course, opened as warehouseman, but this
was for only 5000. A banker, who is
familiar with the facts. says that the losses
with the banks are as follows: Corn Elk
change, of New York, 500, 900: Bank of
British North America, $4,000; First
National. of Chicago, $50, 600; Continental.
of Chicago. $50, 600; Metropolitan. of Chi
cagO. $40, 900. This banker said, however,
that there were a great lot of receipts in
the hands of board of trade capitalists, Sc
that while the loss of the banks is only
1926, 900, there will be at least $780, 00C
owed on the outside. The firms capital
was 500, 900.
THE HOUSE AT THE YARDS
is mortgaged for $50. 600 to Mrs J. c. Fer
guSOn. The First National called a loan
two days ago and that caused the trouble
Attachments were taken against the firm
this afternoon by William KirkwOod & Co
for $4,000, and by William E. Webbe &
Co. for 81, $40. The bank will take out ~
attachments, for the reason that all that wa
found in the warehouse, where there SHOULD
have been $500, 600 worth of property
was 500 bags of salt. The method of frauC
was this: He issued receipts to the bank!
on pork, meat and lard in the Ferguson
house at the stock yards to the amount O
about $500, co., On these he borrowed
money from the banks. A share of TIN
firms banking was done in New York, ant
for that reason about 500, 600 is owed a
one institution there. The First Nationa
is among the heavy sufferers there.
THE FIRM BANKED THERE.
Last month Neeld sold the stuff in hi
warehouses over again to other parties anC
got money on that Neeld was here up t.
Thursday noon. 1t was known three day
that the firm was in trouble. No crooked
ness was suspected until yesterday, wher
the bank, alarmed at not finding Neeld
tried to attach certain property On which
they held receipts and found no prop
erty there. By that time word was received
from Neeld, who was in Canada. B. p
Hutchinson says: 1T is about the wors
thing that has ever happened to the trade.
Mr.. Ferguson was in no condition to tall
to-day. He was in a terrible state O
mental anguish. When asked about TIN
truth of the reported flight of Neeld he sait
be had had no time to investigate the af
fair. As soon as this could be done he wOult
be willing to talk, but for the pres Mt b.
did not know where Neeld was, nor did b.
know anything about the embeZZlement.