Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1888-02-22
A BIG SMASH.
ONE OF THE LARGESrOP PIrrsBURG'S IRON
FIRMS FAILS
Graf Bsnnst. & o.. Make an Assignment With
LahlhtS Of NsSrly 0as and 0as-Half
hllNns-fhs Oauss Of The 0sa-
etrni Estarnne.

PITrsBURa, February 2l.-Gnf, Ben
nett & Co., iron manufacturers, Of this
city, fled deed Of assignment to P. H
Miller, Of Pittshurg. to-day. TIE failure
was . great surprise, - nothing OF the
kind was looked for. In 1888 the firm
failed for about 81, ZOO, 900, and were
granted an extension. since then they
have paid about two thirds Of their indebt.
edness and were supposed to be doing well.
The cause Of the failure was the invest.
ment Of all their profits in tho extension
Of their plant. No statement has jet
been made, but Il 10 understood that
the secured liabilities are about
$500, 600, and the unsecuIed liabilities
from 5000, 900 to 500, 600. The latter con.
sists Of notes for ore and other material.
Among the liabilities 10 . mortgage for
$3.50, 900 held by the New York Life Iusur-
snce Company, which is not vet due. The
assets are believed to be about $500. 900
Judgments aggregating SO, 600 were en-
tered against the firm this morning
Mr.. Bennett has been building q new
mill at Millvale, Pa. which IL Is claimed
has been taking nearly all tho cash re
ceipts OF the firm. He also bought
steel plant on Lake Champlain
and an iron works at Buffalo. The result
OF this policy, il is said, has been heavy
accumulation Of Indebtedness for materials
for the various works owned by the firm.
This class Of Indebtedness, IL is said,
amounts to half million dollars. These
debts are chiefly due furnacemen, ore firms
and others of the same kind. The mort
gage held by the New York Life Insurance
Company is on the entire plant II 10
to be paid in three instAllments. The
first, for $45, 900, Is due on the Ssth
of next month; the second, for $4,000,
on April %, 1869, and the third for $500,
600 on April %, 1890. There 10 also
second mortgage for $500, 900 given to Hay
Walker, Jr., Q soE-in-law Of James l. n
nett. The mortgage Is on all the real es-
tate of the firm. 1t secures fourteen bonds
for various amounts, Of which ak ore In
the name of James l. Bennett, trustee for
the English estate. These six bonds
amount to SOC, 600; the mortgage was given
ON April 29th, 1887. The total liabilities
are in the neighborhood Of 81 200, 900. and
the assets from $500, 900 TO $500, 600.
When Graf, Bennett & Co. asked their
creditors for an extension about three
years ago, they were given hve years' time,
and they have 40 far succeeded in paying
about two.thirds Of the sum then due. II
was thought when they borrowed the
money from the New York Life Insurance.
Company that their troubles were over. and
that this money would relieve them Of oil
pressing demands. Later they asked for
an additional years time on the Gnfton
Iron Company's paper, that company being
largely owned by the firm. Recently
Messrs. King 4 Rea, stock holders In the
Grafton Company, brought suit against
Graft Bennett x Co., charging that tho
affairs Of the Grafton Company were mis-
managed. There arc 20 many complica.
tions In this affair that II is dificult TO say
how bad affairs are ut present.
Inquiries among prominent business
men directly interested in the failure this
afternoon, showed that the consequences
will not be near 90 bad o. at first antici-
psted. The banks with which the firm hss
been doing business are all well secured
against any losses, and many Of tho prin
cipal bankers are confident that the diff
Guilty will be tided over, and that every.
thing will soon he satisfactorily arranged.