The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-10-10
On Which He Obtains the Cash and Flees to
Canada, Thus Breaking the Well-Known
Packing Firm of J. G. Ferguson Co.
The Losses Fall Chiefly on Banks. One
New York House Losing 100000.
The Money Said To Have Been Lost in Specu-
lative OperatiOnsinP Provisions and Stocks
III Story Of the House in This City.
A BROKEN FIRM.


N. M Neeld Breaks the Firm of j. G. Fergu-
SON s. Co. by Huge Defalcation.
Special to the Indianapolis journal.
CHICAGO, Oct. 9-The failure Of ]. G. Fergu-
son & Co., which occurred to-day, was one of the
most sensational that has taken place in this city
for years 1t was like clap of thunder from a
clear sky Early this morning Mr.. Howard the
New York partner, telegraphed the home house
that it was rumored on the street that promi-
nent Chicago packing house was in trouble, and
asking particulars Later he wired that j. c.
Ferguson & Co. were named as the topping
house. At that moment trades with the firm
were being closed out on Change. Ever since
J. G. Ferguson & Co. started here
N. NJ. Neeld has been the active head of the
representatives on the Board of Trade He has
always speculated moro or less, but never got
beyond his depth until quite recently. Neeld
always took the lead, and it was thought until
late in the day, that he had raised money on
bogus warehouse receipts of provisions in store,
but this proves to have been incorrect in the
main. He simply borrowed 100000 or $500, 900
on warehouse receipts to carry on business with
and, as he needed money to meet margin calls in
his speculations, sold the property represented
by these certificates and used the pro-
ceeds. When the stock-yards strike
oc h. boc1 ~&nJ
600 it had advanced This was the notice Neeld
had been waiting for and he quietly slid out.
He was advised to stay and face the music but
his courage forsook him. On investigation it
was found that every pound of meat represented
by the receipts and certificates held by the banks
had been shipped out There remained in the
warehouses few dozen sacks of salt. It Is pos
sible that bogus certificates for few thousand
barrels of pork are out, but that is not certain.
The outstanding receipts represent about 900 900
pounds of meat.
Mr. Goodbody, the English partner. who happens
to be here, is trying to arrange matters with the
banks, with some prospect of success. Where
nothing is In sight, they will probably take what
is offered them in settlement and be thankful.
Literally everything was swallowed up in the
wreck.
The ill-luck that finally overwhelmed the
house began about two months ago, on the day
that Mrs Edward Ferguson was thrown from
horse and very seriously injured. Neeld, on that
date, began playing a losing game in the markets
and never once hit it right afterwards. Every
thing he touched LOST him money, and the deeper
in the hole he got theharder he struggled and the
more desperately he sambled, until there was
nothing more to lose. He followed Armour's
famous tip, and lost enormously, and at the
same time bought heavy lines Of wheat on de-
Clining market; also getting burned in stocks.
When he left here, on Thursday, he said to some
that he was going to Indianapolis; to others he
said he was going to New York He is thought
to be in Canada, and nobody thinks he took
away with him any money worth speaking Of
j. G. Ferguson has not been paying attention to
business details for several years. John Fergu-
son is in Liverpool
Mr. Ferguson, the remaining member of the
Arm here, when seer to-day, gave it as his belief
that Neeld had gone to New York. The fact that
Mr.. Ferguson did not know of the defalcation is
considered remarkable by those who did not
know the methods of the firm. But those who
are familiar with Need and his management do
not believe that Mr. Ferguson knew, until per-
haps, within day or so, anything Of the crook.
edness of his sisters husband.
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