Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1889-07-26
A BIG FAILURE.

| ~Statement Made on April 20-Brad-
streets Reduce Their Credit Rating.
New York, July 25.-The announcement
| of the financial embarrassment of Lewis
Bros, made through morning paper, came
on nine-tenths of the New York dry goods
| world as q great surprise. Even the en-
ployes of Lewis Bros. who work in the big
warehouse on Worth and Thomas streers
knew nothing about the firms condition un-
| til this morning, and little more even then.
The other tenth of the dry goods world ex-
| pressed no surprise, though much regret,
| that public announcement of the difficult
| ties of Lewis Bros. should have become
| necessary.
Two years ago there was some hitch in this
firms business, which was afterwards set
tied up without much discussion; but the
impression remained. and at least one bank
has refused to discount Lewis Bros. paper for
some time past.
! street warehouse this morning. Neither was
any of them expected before 2 o'clock, when
| it was expected that an informal meeting
would be held.
The amount of the liabilities is given at
81, 1000, 900. The assets are put down by
Lewis Bros. at IS, SOC, GOO, or 81 SOC, 900 more
than the liabilities.
This includes, however, all the property of
the firm. such as buildings in New York,
Philadelphia and other places.
PHILADELPHIA, July 25.-The firm of Lew
| is Brothers & Co. ere wholesale dry goods
dealers, Chestnut street, above Second, Phil
adelphia. The firm is one of the largest in
| it's line of business in Philadelphia and per-
haps in the country. It has houses in many
Of low oit of tho TTpitaH Stataa mr.
! tably New York, Chicago, Baltimore and
Boston, The members of the firm resident
in this city are: George W. Wharton, Joseph
w. Lewis and Henry Lewis. Mr.. Wharton
when seen this morning promptly admitted
the authenticity of the rumor that his firm
had made an assignment for the benefit of
their creditors. Cornelius w. Bliss Of the
New York firm of Bliss, Fabyan & Co., was
the assignee.
New York, July 25.-The partners in the
| big dry-goods firm are Henry Lewis, Joseph
w. Lewis, Walter b. Lewis, John L. Board
| man, George W. Wharton, John Williamson,
George B. Duren and Grinnell Willis. The
New York parties went over to Philadelphia
| to acknowledge the amount and returned
| this afternoon. They said they would make
| a statement in few days. Mr.. Bliss said
| the firms statements in the past sixty days
| showed surplus of over 81 100000 but that
WAS not available now. A large part of it
i was IN account WQlCQ Guey cOulO LOU CoAlco1
! Immediately. Hesthought the assets would
make fair showing, The liabilities were
| held by banks and trust companies. There
will be meeting of creditors
| in ten days. A gentleman said nearly all
banks in New England held the firms paper,
| especially in the cities where they had mill
| accounts Boston, Providence, Hartford, New
4 Haven and New Bedford banks are reported
l to hold considerable paper. The New York
i banks mentioned are the Fourth National,
the Ninth National, the Central National and
l Central Trust company. The Chemical bank
held none of their paper since January l.
Philadelphia banks are the heaviest holders.
Some banks have taken their paper with re.
luotance lately The firm has been extended
we're loss in the death of Henry
Lewis, the founder of the house, who was
we'll known, particularly in Philadel
phia. 1t was learned from another
/ source that the firm own their store prosperity
In Philadelphia and also their store building
at No. SO Worth street. New York, which il
on leased grounds, and which, it Is said
were mortgaged few months ago. 1t is
said that one of the causes Of the failure waa
the Johnstown disaster. The late Henry
Lewis had a large interest in the Cambria
/ Iron Works there, which his estate held, and
the loss by the food deprecated the securi-
ties. The Johnstown Manufacturing COM
n
product to Lewis Brothers. The mill was
destroyed by the food, and the loss was
$500. 600. 1t was controlled by the Cambria
Iron company.
Walter Il. Lewis was Q director of the New
York Life Insurance Co. The firms head
quarters are at No. 238 Chestnut street,
Philadelphia, the stores in Chicago, Boston
and Now York being branches. The BUSH
ness has amounted to as high as SIT, 0o0, 900
year. Lately 1t is said to have fallen to
eight or ten millions annually. They claimed
their capital was million and half and
that they made money every year. Since
January there has been doubt expressed
| about their financial standing, and In March
last Bradstreets took away their capital rat
ing and reduced their credit rating grade.
On April 20 the firm made the following
statement to large financial institution: As
sets, So, Az, 000, consisting of ledger accounts,
Isl 1915, 900, manufacturers accounts, 81 1873,
900, securities $8l1 200, real estate s. ITO 00O
bills receivable, 1925, 900. Liabilities 81,
129, 900, of which So, 6S2, 900 was bills paya.
BILE and $447. 900 q loan; net surplus 81, 343,
600. This was not looked on as q favorable
statement by the trade. The firm had hard
terested in the Conshohocken Worsted Mills
which failed. They admitted in March last
that they would lose $4,000 by President
l George Bullock's insolvency. For over q
years the firm of Lewis Bros. & Co. hav'
been the leading house in the dry goods
trade. 1t was founded In Philadelphia II
1852 by Henry Lewis.
The senior in 1885, leaving large estate, o
which $25S, 900 was invested as capital IL
the firm. Besides 81 100000 Of his was con
tinued in the business.