The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-10-10

holds a mortgage on it, The defalcation grew,
it Is believed. through year, and it is presumed
that it started with 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 J. G.. Ferguson Co. is one that
has been in existence for twenty fve years. 1t
was in existence in Indianapolis before Chicago
the packing center. Neeld married the
daughter Of j. G. Ferguson, whom he has now
ruined by his irregularities He and son of
the senior Ferguson, Edward, moved here and
opened a house at the yards, about ten years
ago. Neeld has been the managing partner ever
since. For number of years he really has been
at the head of the firm. 1t did very large bust
ness with England, and rated as high as any
firm in the trade, although, of course, not doing
business on as large scale as one or two
others.
1t now appears that the firm had lately ceased
active operations in killing hogs, and that
storage receipts were either fraudulently issued
or else that property covered by them had been
removed and converted into money, which was
either squandered on the Board of Trade
or carried away. Bankers were somewhat re-
luctant to talk about the matter this afternoon
The blow was unexpected, and they had hardly
time to recover their breath. r. G. Dun &
Co., commercial agency, said that j. g. Fergu-
son & CO. had been doing their business
principally throug Oh the Exchange National Bank,
at the stockyards, which has more intimate
business relations with the First National Bank
of Chicago than that of any other. The agency
refused to give the rating of the involved pack
and that $500, 900 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 suffered:
Corn Exchange, of New York; First Ma
tional, of Chicago. METROPOLITAN, Of Chi
caeo; Bank of Montreal of Chicago;
Bank of Illinois, Of Chicago; Continental
of Chicago, and the British Bank of North
America It is also said that some of the Bos-
ton banks were stuck. It is said that the First
National Bank here is the heaviest loser About
$500. 900 is divided among the Chicago banks.
AT o'clock to-day Secretary Stone Of the
Board of Trade, declared that the warehouse re-
ceipts of J. c: Ferguson 6 Co. were irregular"
They had, of course, a bond as warehousemen,
but this was for only S., 900.
banker who is familiar with the facts says
the losses with the banks are as follows: Corn
Exchange, New York. 500, 900; Bank of British
North America. $4,000; First National Bank
of Chicago, $4,000; Continental, of Chicago,
$4,000; Metropolitan of Chicago, 500, 900. This
banker said, however, that there were great
lot of receipts in the hands of Board Of Trade
capitalists, so that while the loss of the banks is
only $685. 000 there will be at least 500 900 due
outside. The firms capital was 5000, 900. The
house at the yards is mortgaged for 900 to
Mrs. j. G. Ferguson. The First National called
a loan two days ago, and that caused the trouble.
Attachments were taken against the firm this
$4,000, and by VIM. E. Webb & Co. for 81, $40.
The banks will probably not take out attach
ments for the reason that all that was found in
the warehouses, where there shonld have been
100000 worth of property was three hundred
bags of salt.
The method of the fraud was this: He issued
receipts to banks on pork, meat and lard in
Fergusons house at the stockyards, to theamount
of about $780, 600; on these he borrowed money
from the banks. A share of the firms banking
was done in New YORK. and for that reason
about 100000 is owed at one institution there.
The First National is among the heavy sufferers
here The firm banked there Last month
Neeld sold the stuff in his warehouses over again
to other parties, and got money on
that Neeld was here up to Thursday
noon. 1t was shown, three days ago,
that the firm was in trouble but no crookedness
was suspected until yesterday, when a bank,
alarmed at not finding Neeld, tried to attach GER
tain property on which they held receipts, and
found no property there. By that time word
was received from Neeld, who was in Canada.
B. P. Hutchinson says: 1T is the worst that
has ever happened in the trade"
Mr. Ferguson was in condition to talk to-
day. He was in terrible state of mental
anguish. When asked about the truth of
the reported flight of Neeld, he eaid he
had had not time to investigate the affair AS
soon as this could be done he would be willing to
talk, but for the present he did not know where
Neeld was, nor did he know anything about the
embezzlement
Denial from the Corn Evohan~n Rank.