Los Angeles daily herald., 1889-07-26
A BIG FAILURE.
Lewis Bros. & Co. Go to
the Wall.
THEIR PAPER GONE TO PROTEST.
They Make an Assignment-Causes
of the Big Dry Goods Firms
Collapse.
lA,soci.ted Press Dispatches to the HERALD.

lAssociated Press Dispatches to the HERALD
PHILADELPHIA, July 25.-Surprise was
occasioned ia business circles this morn
ing by the announcement that the firm of
Lewis Brothers & Co., wholesale dry
goods dealers on Chestnut street above
Second, had made an assignment. While
the exact amount cannot as yet be ascer-
tanned, it is thought the liabilities will
run up to nearly 81 900 900. The firm is
one of the largest in its line OF business
in the city, and perhaps in the country.
1t has houses in many of the large cities
of the United States, notably 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. Wharton, when seen
this morning, promptly admitted the
authenticity of the rumor that his firm
had made an assignment.
Cornelius W. Bliss, of the New York
firm of Bliss, Favayn & Co., is the as
signee.
stto place the amount of our liabilities.
However, 1 feel convinced that they will
not be much in excess of the assets. OF
course, it is impossible to determine
these things until an examination of the
books has been made. We are now GO
ing over our books and will probably
know more definitely tonight how and
where we stand. If we could have had
two or three days more, am sure we
would have been able to tide over cur
difficulties, but the blow fell just at the
worst time, and our only course was to
make an assignment. This we did. For
some time past our business prospects
have never been brighter, but you know
you can't market paper"
NEW YORK. July 25.-The announce
ment that the notes of the heavy dry
goods firm of Lewis Brothers & Co. had
gone to protest was the absorbing topic
in mercantile circles today. The assign
ment was filed in the County Clerks
Office here this afternoon. Cornelius w.
Bliss was made assignee. The assign
ment was executed in Philadelphia.
The parties will make statement in
q few days. Bliss, the assignee, said the
firms statements in the past sixty days
showed surplus of over 81 900, 900, hut
that was not available now. A large
part of it was in accounts which they
could not collect Immediately. He
thought the assets would make fair
showing. The liabilities were to banks
and trust companies. There will be a
meeting of creditors in ten days he said.
A man familiar with the firms affairs
said today nearly all the banks in New
England held the firms paper, espec-
ially in cities where they had mill ac-
counts. Boston, Providence, Hartford,
New Haven end New Bedford banks are
reported to hold considerable paper. The
New York banks mentioned are the
Fourth National, Ninth National, Cen
tral National and Central Trust Com
pany. Philadelphia banks are the heav-
lest holders.
The firm had been extended and over.
loaded. They suffered severe loss in
the death of Henry Lewis, the founder
ticularly in Philadelphia.
1t was learned from another source
that the firm own their store property in
ing on Worth street, New York, which
is on leased ground, and which, it is
said, was mortgaged few months ago.
1t is said that one OF the causes OF the
failure was the Jobnstown disaster. The
late Henry Lewis had large interest in
the Cambria Iron Works there, which
his estate held, and the loss by
the food deprecated the securities.
The Johnstown Manufacturing Company
and the Woodville Woolen Mills con-
signed their products to Lewis Brothers.
The mill was destroyed by the food and
the loss was 100000. 1t was controlled
by the Cam bria Iron Company.
Walter Lewis was a Director Of the
New York Life Insurance Company.
The business of the firm has amounted
to as high as $15,00O,0OO year.
Lately it is said to have fallen
to $4,000, 600 or $4,000, 900 annually.
They claimed their capital was million
and half, and they made money every
year. Since January there has been
doubt expressed about their financial
standing, and in March last, Bradstreet's g
took away their capital rating and re-
duced their credit rating one grade.
April Goth the firm made the following
statement to large financial institution
Assets, IS, ,472 900, consisting of ledger
accounts, 81 ,S75, 900; manufacturers
accounts, $l,793 900; securities, $Sl1,-
600; real estate, $40, 900; bills
receivable, 1928 900. Liabilities, 81
129 1000, OF which So $4,000 was bills
payable, and SAT 900 loan. Net sur
plus, 81, ,343 900. This was not looked
on as a favorable statement by the
trade.
The firm had hard work to make col
Iections. The firm was interested in the
Conshohocken Worsted Mills, which
failed, and they admitted in March last
that they would lose $25 900 by President
Bullock's insolvency.
For over twenty-five years the firm of
Lewis Brothers & Co. has been the
leading house in the dry goods trade.
1t was founded in Philadelphia in 1851.
The founder died in 1886, leaving q
large estate, of which $258,0 was in
vested in the capital of the firm, besides
81 ,000, 900 of his which was contained in
the business.
PROVIDENCE, R. l., July 25.-Mills and
banks here will be involved by the fail
ure of Lewis Bros. & Co. to the extent oi
5000 900. Local banks have about $780,
900 of their paper and the rest is divided
among half dozen mills. None of them
will be seriously EN- mbarrasCed.
BALTIMORE, Md, July 25.-Prominen
dry goods men here estimate that Lewis
Bros. & Co. have in Baltimore more thar
half million dollars assets and no liabil
tiles.
CHARLEMA TOWER.
Death of the Noted iron King-Hts.
tory of His Achievements.