Los Angeles daily herald., 1888-05-08
PACIFIC COAST.
William T.. Coleman &
Co. Assign.
WILL PAY DOLLAR FOR DOLLAR.
The Failure Caused by Want OF
Ready Cash to Meet Pres
ent Demands.
/ Assooiassd Press DlspssOhestos the Hrs4l'

:, Associated Press Dispaschestot the HEBALI
SAN FRANcIsco, May The whole
sale commission house of Wm. /.
Coleman 4 Co., made an assignment
to-day to L. L. Baker and Louis Sloss
for the benefit Of its creditors. Frank
s. Johnson, Managing partner OF the
firm, submitted statement to the
Z effect that the firm was unable to re-
alize upon its assets Immediately, and
in view Of pressing engagements in
New York where the call upon them
for money was urgent, they decided
to make an assignment in order to
prevent the dissipation of their
property. Johnson places the assets
OF the firm at from $4,000,000 to $4,-
800 900, and the liabilities at 50 ,O0O,-
600. Their indebtedness in Califor-
MIA, with the exception OF number
of small amounts, is confined to four
banks and two individuals. johnson
further states that among the most
valuable assets OF the firm is the boz
rax property, which is valued at $2,-
900 900, negotiations for the sale oi
which were in fair way to be con-
summated when the announcement
OF the tariff bill placing borax on the
free list tended to defeat the efforts in
that direction. The firm feels conf
dent that its resources are sufficient
to more than meet all engagements.
The banks mentioned as its
creditors are the Bank of California,
Bank OF British Columbia, Nevada
Bank and Bank OF British North
America. The firm is indebted to the
Bank of California to the amount OF
$4,000, Of which $4,000 is secured:
1t is estimated that the firm owes the
Bank Of British Columbia 500, 900,
the Nevada Bank $220, 900.
and the Bank of British North
America 100000. 1t is stated
that OF the whole amount of Coleman
& Company's Indebtedness, one-half
is in the State and the other half in
the East, the greater part Of the latter
being heId.by New England banks.
The firm has been extending its
business lately and has acquired a
great amount of real estate in the
counties adjoining this city. The as
signments to-day we're made both by
the firm and by VIM. I. Coleman. 1t
is reported that the Nevada Bank
called in its loans sometime ago, and
failure to respond in full has probably
been the cause OF the collapse.
The foundation OF the firm Of VIM.
Coleman dates back to 1919, when
Mr.. Coleman started a store in Placer
Vile, this State. The following year
he removed to this city and since that
time the house has taken the foremost
place in the business interests OF the
coast. The present members OF the
firm are w. I. Coleman, Frank s.
johnson, Carlton G. Coleman and
Richard Delafield. The house has
agencies in Astoria, Ore, New York,
Chicago and London. 1t also acts as
agent for large number of manufac-
turing and producing establishments
and for the principal salmon can
neries on the Columbia, Fraser, Sac
ramento, skeena and Umpqua rivers
aside from several in Alaska Theil
shipping department is agent fol
several lines OF clippers to and iron
Australia, China and South America
The. business of the firm is said tt
amount to $14, 900, 900 per year.
MR.. coLEMAN's STATEMENT.
SAN RAFAEL, CAL, May I'm an in
tersiew with VIM T. Coleman tonight
he said "Our suspension is due t
the want Of immediate available
cash. / needed $500 900 to NEE
obligations in New York withiI
a few days, and could not rails
it, without making promises and as
suming obligations saw no probs
bility Of meeting. You see all .ou
money is out and no large amount
are due US, nor will ther
be for some months. One c
the principal factors in this calamit
was over the borax propert
in Southern California. We there in
vested about million dollars, an
were ON the eve of selling it for tw
millions when the duty on that articl
was proposed to be removed by Con
gress. This prevented the sale Of tn
property, the proceeds from whic
would have met all our obligations
The difficulty assumed a serious phas
last fall when the Nevada Ban
troubles occurred. Then we owe
that institution about $500, 600, an
paid $10O, 900, the balance of $200,0
was we'll secured, but some one 0
looking over the banks accounts
since it proposed to place lis stock 9
m the market, declared this unsafe. {
u course the rumor spread, precipitatin
q crash in New York. AS matter
stand, no one we are indebted to nee
lose dollar, though our asset
should not realize over so cents 0
the dollar of the estimated value G
the asstes. Should rs cents be rea
lied there will be handsome exec
of resources, and with 100 cents {
the dollar, which ought to be realize
the firm will come out with q larl
surplus. No embarrassment will
felt by any business men in the Stat
nor by the poor and needy. The O
tire indebtedness in California is cor
paratively small, the bulk being
New York and the Eastern States"
The firm deny that the failure
due, in the least, to outside specul
ton.
HAY CITY CHAT.