The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-10-30

Tho Affairs of j. A. Closer & Co. In the
Care of n Receiver.

Inc Auatrs of u. "A. Closer a 20. tho
Care Of - R-c-iver.
There was some surprise expressed IN ousi
ness circles yesterday wnen 1t was announced
that J. A. Closer & Co.. the grain merchants.
had failed. About noon William Watson Wool
en-, attorney for George ". Johnston, a mein-
Der OF the arm, appeared before Judge Howe,
and asked for the appointment OF . receiver.
The complaint set forth that the firm was insol-
vent; that within the last week many large
drafts were presented which IL was unable 70
meet. aud that in justics to creditors 1t was
deemed best TO suspend business, ana
place the assets Of tho company In the
hands Of a receiver. Accompanying the CON.
plant were answers from NJ A. Wooden ana
Charles j. Colgan, the other members OF the
firm, admitting all thea legations Of the CON-
plant, and agreeing that Sidney NJ. Dyer De sp-
pointed receiver. Judge Howe granted ne
petition, ana Mr.. Dyer qualified by giving q
bond. signed by q. v. Wooden. A. A Barnes,
". II. Perkins and Arthur Jordan. The bond
did not state the amount of the security. ASH
was claimed that IL would be Impossible at the
present time to give al estimate even OF hsVit-
ties. There is a great deal of grain 10 trahsit,
and the disposition of will greatly affect tne
liabilities and assets. The assets OK the
company are roughly imated AT
500 600. consisting o. two elevators, one 10 ms
city, and the other in Bloomfield. together -itn
considerable grain. Last Thursday night the
elevator here was damaged by IRE, causing a
loss OF 1900, which has not yet been adjusted
by the insurance companies.
The firm has but few indianapolis creditors,
the principal one being the Merchants National
Bank. and it is amply secured. For many
years ]. A. Closer & Co. have been in the list
OF the best known grain. dealers in the West
They bought extensively, and almost exclusive
ly for the Eastern market. The firm was es-
tablishsd by Col j. 4. Closer. and after his
l--.I 800 80 10 kfnAa fnTn
the hands Of the gentlemen who make the as
signm-nt. The failure is attributed partly 10
Hntchinson's recent corner in wheat.
NJ. A. WOODEN Gays the liabilities cannot be es-
timated until Eastern correspondents are heard
from. Our firms financial Embarrassment,
he Q aid yesterday, "begab about 1--WE years ago.
1t Was occasioned by the failure OF . former
partner, involving the firm. This was largely
overcome by the forming OF the new hrD. when
Col. George W.. johnson became q partner.
Two years ago toe death of the senior mem Der
Ct the firm, Col. j. A. Closer. still further COM
plicated our affairs. Soon after HE death we
settled in full with his estate, and his interest
in the business ceased. the firm name remaining
the came, because of beiug 80 thoroughly known
all over the United States"
did the interstate law affect your he was
asked.
ST seriously affected us, rendering very val
uabls property next TO worthless 6y reason OF
its peculiar location. We reorgarizrd after the
death of Colonel Closer, and the year following
this we were prosperous and bid fair 70 place
ourselves on a sound, financial basis. The bus
mess this summer has been very large. After We
had bought o very large amount OF wheat and
shipped it to Sandusky. o., to which
point we shipped all our wheat for the purpose
of grading and shipping to the East by lake and
canal, the Erie canal gave way. stopping ali nav
iRation for ten days while tho canal was being
repaired. causing q blockade at Sandusky. When
navigation resumed rates advanced materially.
owing to the demand for boats to forward ce-
lsyed merchandise. thus entailine a heavy loss
on rs and greatly delaying shinments."
"How far does tho late wheat corner enter 10.
to the failurel"
'Befors this grain could reach New York,
spectators began 10 manipulate the contract
grade of wheat NO.. 2 r~dl and caused the differ
ence between No. 2 red and No. 3 red 10 widen
far beyond their relative value. The wheat
owned by our firm was OF the latter grade, and
in large quantities. against which we had sold
No. 2 red according TO the usual custom OF the
trade. The extreme TO which No 2 red was sd-
vanced by speculation was not realized on No. 3
red, the result being that our holdings we're sold
at a very er~at loss. whereas we had expected,
as in former years. IL would sell reasonably close
TO the value of No. 2 red. The heavy offer
ence thus caused results 10 our failure. As TO
how we will paw out will depend entirely upoo
how well our assets can be disposed Of. consist.
ing of wheat, oats. corn, real estate and elevator
property. Our liabilities are almost entirely ia
Eastern parties. We owe but very little TO our
country correspondents, probably not over
$780,"
Dir. Wooden thinks that the liabilities are
large enough 20 prevent the firm from rs,nn.ioe
business on its old basis.