New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-19
WHAT LED TO 4 BIG FAIL URE.
CAUSES OF THE EMBARRASSMENT OF CHARLIE
WINCHESTER. OF AsHBURNHAM.

CAUSES OF THE EMBARRASSMENT OF CHARLES
WINCHESTER. OF AsHBURNHAM
Boston, Dec. Is (Special.-The failure of Charles
winchester Of Ashburnham, for nearly bali million
dollars, was brought about in somewhat singular
manner. In 1865 Methodist clergyman, one Loud,
was preaching at Fitchburg He inclined to a
business rather than clerical lite In the same year
the Oscado Salt and Lumber Company organized
with Mr. Loud the central figure. Charles VIM
chester became interested in the concern and invested
about $780, 900 in the speculation. Between that time
and 1877 the concern changed from Loud. Sheppeed
& Co to Loud, Priest & Gay and at the time
mentioned it was controlled by Loud. Gay Co.
From the time that Mr. Winchester became interested
in the speculation up to 1877 he had contributed
toward the venture $4,000. Early in 1877 Loud,
Gay & &C.. became financially involved. To avoid
extensive litigation and the thrusting OF the company
into insolvency a compromise made with the
creditors and by that compromise Mr.. Winchester's
claim scaled down to $275.000. AT that time
the affairs of the company were placed In the hands
OF three trustees, two of whom were chosen by VIM
chester. An agreement then entered into by which
Loud, Gay & Co. and their assignees were to meet
their obig atoms Winchester, and had ten years in
which to do He to be paid $50, 600 the first
year $4,000 the second $4,000 the third $4,000 the
10000 per year until the Indebtedness was. met
company was under the direction OF Winchester, and
about 1882 he notified Loud, Gay Co. that he should
take possession. This was followed by
suit instituted by Loud who claimed that he
had right redeem and he sued for possession or the
property The decided that LOnd had this right,
and Winchester informed that he must account to
Lond for his trust, and that such services as he
have drawn out since the agreement entered into In
1887 must be accounted for The result was that the
original Of s275. 900 which interest at per
cent had been wiped out all but about $4,000.
Mr. Winchester carried to the Supreme Court OF
Michigan, where It is sui pending -, -
Another cause OF wincnesters failure was his con-
Mnnroe was doing snug little business in Cleveland
The Oscado salt and Lumber Company wanted an outlet
for its business, well good, reliable headquarters
IN Cleveland and the company arranged WIN Mum
roe to take its business at that point
During the great freshet at Cleveland In 1883,
Munroe Brothers & Co.'S lumber yard was inundat-
ed and 100000 feet OF lumber washed away.
Then followed lawsuit to decide whether the lumber
company the Cleveland agents should bear
the loss. and the company had to sustain u the
loss which amounted to about 100000. WIN
chester, special partner OF Munroe Brothers, In,
dorsed their for $4,000, which he.was compelled
also 10 These the main causes that led 10 MS
failure.
George K Gouding dealer cotton and cotonw waste
No 57l Atlanrcave this city, has failed His Indebted
placed $50 600 and Is chiefly IN notes bearing the
Endorsement OF Charles Winchester The actual assets
estimated at 10000 GOu1ng Is treasurer ana W
chester president OF the GOuldng Mills, at Maiden which
manufacture blankets, etc.