New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-09
w. r.. COLEMAN'S FAILURE.
WHY THE GREAT FIRM sUCCUMBED.
DISASTROUS ATTEMPTS TO KEEP TOO MANY IRONS
IN THE FIRE-AssETs AND LIABILITIES.

-
chief topic Of conversation among merchants and a.
the downtown clubs to-day. The opinion yesterday
was generally that reaching out and attempting 70
control too many lines OF business brought on tho
disaster. These reckless methods not known to
the general public and confidence In the firms stability
great that they carried on successfully
foe long time Most OF the assets unavailable
for ready cash. and II closed out at once leading mer
chants who good judges declare they will not
realize so per cont Of tho liabilities. A significant
feature Of the failure the appearance here on tho
day OF the assignment OF II. ii. Kissei, OF Delaheld
Morgan Kissel & Co.. of Now-York and Chicago, who
opens business hero to-day This firm for several
years have done the Eastern business for Coleman,
but last January all accounts were closed and the
business East Of the Rocky Mountains was turned over
TO them by Mr.. Coleman Mr.. Kissel explained his
arrival here at this time as merely coincidence, but
this Is absurd. Mr.. Kisscl simply learned OF ME-
Coleman's embarrassments and came here to try 70
establish himself on the wreck Of the old firm. In
this work he gets sympathy. Bradstrccts agent
hero was indignant over Kissers unbusinesslIkc way
of hurrying out here and opening branch Office to-
day without any warning TO the agency.
The rumor that the Nevada Bank held note for
5000 proved true and It the pressure for the
payment Of this with other demands from New YORK
banks, that prcciptated tho failure. What Mr. Cole
man can realize on his assets IS wholly matter OF
conjecture wellinformed business man, in talk
Ing on the subject to-day said: All valuation given
In Colcmans schedule Of assets arc inflated IL Is
doubtful whether you could get any one to tako tho
borax works for quarter of million, while IL IS
absurd to rate their value at two millions with tho
present uncertainty about the tariff 1t would be
great risk give 10 per cent of Colemans vaua
ton and II the Mills bill passed It will result In tho
shutting up of the borax works, they can't run at
a profit. Then take the San Rafael property, which
is estimated at a million and half This IS boom
valuation and under the hammer II you get one-hfth
of this sum you would do well Colcmans largo
holdings in San Rafael have been cut up into villa
lots and many sold at high figure, but the real estate
boom IS shaky now, and forced sale would bring
prices down to real values. The same may be said
of the Burrl Burr Ranch in Santa Clara Valley and
Of tho salmon canneries on the Columbia River and
In Alaska Nothing like the value put on them can
be realized
Mr. Coleman said before he left here for San Rafaci
"My plans to pay my debts in full. hope We
shall realize on our assets the extent antic
pate, and If do We shall pay everybody In fun
That at least shall be my ambition. If can't do lt
the assets have shall 10 work ana DO u De-
fore die. Fortunately, am not yet very old man.
My health is good and have considerable strength left
for such task We lost heavily on fruit last year.
Tho market was inflated hero and we purchased heavily
on the spect Low prices, etaghant market, pad
handling and bad results OF the work OF our Eastcrn
borax property owing to the gloomy future of that
mineral when on the free list and in competition WITH
fruit m last last year, tell the whole story
II needed $500 OOO to meet obligations in New
York due within few days and could not raise & me
amount without making promises and assuming ooh-
cations that saw no probability OF meeting L..
From talks with fruimcn, it was learned that last last
year Coleman Co. set out to control The 1rut traue
Of this especially in rasins, in which was am
bilious of making corner Rasins were pHrchassea N sea an ~
well as other dried fruits, and after the prospective
losses became apparent was said 81 that the firm o cyaded
is stated that S1O0Oooo must have been lost In
Tha made prCgrrsS with accounts
yet The chief local creditors are the Bank OF eau.
Nevada Bank, $500, ,Ooo Bank of British North Amer
lca, about an equal aomunt; tho Ncw:Engiand Bank
Ii is tho general opinion here. however. that tho
firm will pull through. and Mr.: Coleman has received
many offers Of assistance which he refused
Chicago, May 6.-w. 7. Coleman & Co. have had
no agency either in Chicago or New-York since jan
uary l. their business in both cities having passed into
tho hands OF Delafeld, Morgan, Kissell & Co.. OF
which firm I. b. McGovern, the former Chicago agent
Of Coleman g. Co., is member. Mr. McGovcrn was
at his house by reporter and said that he frst
heard Of the failure few hours before. 1t was as
great surprise to him as he knew It would be to tho
business community generally. He estimated tho
liabilities at 900 900, nearly all Of which would fall
upon Now-York City. Not dollar would be lost
In Chicago through the failure. The firm had been
considered thoroughly reliable, and its credit was ex-
cellcnt. It's paper had been on the market ana was
chiefly in tho hands Of various New-York banks Tho
collapse would also involve many salmon ana iruis
canning establishments Of the Pacific Coast, and many
of those concerns would be unable TO survive The crash
Mr. McGOvern the attorney as well as tno
local agent OF the Coleman Company, ana wouho nP
its affairs before they withdrew from this point iie
had seen some things that he did not exactly hEe
but not prepared for any such eutcOmo' ITO
thought the firm would be able 10 maze soJa soId
ing toward settlement MI coleman, ao ce, sa,e,
was a wealthy man. He was large Pacinc ooaSs 81
landowner besides & being extensively b.s often ad
vanced money to the San Francisco house Du, t ia
taken goods for every ioar of IT, and would not ioso
q cent Coleman Co. have done business In Chicago
amounting TO as much as 100000 year.
HOW THE FAILURE WAS TAKEN HERE.
NEARLY A MILLION IN PAPER SAID TO BE HELD IN
THE EAST.
The failure OF william T. Coleman & Co. was gem
era theme of discussion in business circles yesterday
despite the fact that the assignment was not entirely
unexpected Various rumors indicating such step
have been current for time, but Notwithstanding
this much surprise expressed among business men,
who had only known the firm as one OF the wealthiest
and most enterprsing on the Pacific Coast and one OF
the largest in the borax trade In the world 1t owns
thousands of of borax land In Caforna, and Mr
Coleman, tho senior partner, whose name has been
mentioned as Democratic candidate for the Presi-
dency was supposed to be worth two or three miions
at least.
The Arm ts composed of W. T. Coleman, Frank s.
Johnson and Carlton c. Coleman They had branch
In this city, at No. II Hudsonst, until January II
when new firm, Delalleld, Morgan, Kisse Co.. TOOK
tho Eastern business. The reasons for making tnis
change were set forth by Coleman g. Co. In circular
issued at the time, and the firm, Deafeld, Nor
gen. Kisscl s. Co., issued circular as follows: " W..
T. Coleman d Co. having transferred TO us their ware
houses and Offices In New-York and Chicago we Will
conduct the business under the firm name OF Dcaheld,
Morgan Kssel & Co., making Speciality OF Pscihc
Coast products, being retained and appointed by
Messrs W. T. Coleman g. Co., of san Francisco, as
their sole agents Of the Rocky Mountains and in
Canada
Mr. DelaHcld said yesterday that his firm merely
represented Coleman & Co. commission merchants.
They sent goods here and his firm sold them Cole
man & Co., he added, had dono little business here
lately, and he did not think they owed anything for
erchandse In New-York. The greater part Of their
indebtedness in the East was paper lie did not
know what banks held the firms paper but Of