New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-02
TIE FAILURE OF "SCHENCKS COMPANY"
FURTHER PARTICULARS GIVEN By THE pREsI-

FURTHER PARTICULARS GIVEN By THE PRESI-
pENT-RBLENTLEss CREDITORS.
A brief statement of the causes which led 70 the
failure Of the Consumers Coal Company was pup
lshed in The Tribune yesterday Further particulars
are given by the president c. Stewart schencR, who
says:
Rsytne upon the representations Of the oeias Of the
hank where largo balance customsrily carried 20
erans ample paper accommodation, some three years ago
the company management deemed wise TO erect extern
sve coal pockets for the rapid and cheap handling OF
coal with the latest improved machnerys BY reason OF
faulty construction OF the docks upon which these were
erected through the influence Of the strong eoo TIDES o.
the East River twice they swept away at loss Oh
many thousand dollars. for which no indemnity was OBJ
tanned except suit against the leasers Tor Damages
which ia now before the OF Commerce for srbisra
ton.
large proportion OF tho compsny's working capital
was thus transferred from the bank balance to plant
fixtures and when during the past dull summer, which
.ucceedet an unusually mild winter tho company needed
the assistance OF It's bank which received all the dement,
OF the consolidation OF all the other bank accounts
previously kept suddenly the promised accommodation
was withdrawn owing TO the objection OF one director
for no reason Of dscredt or policy but because Of
some personal between said director and an
active trustee OF this company.
with the abnormally dull business and slow collections
incident to the season. the wealthy ouentage OF the
company was from the city and the added dicuy
of the prolonged absence business Of the only execu
tive onlcer the company got behind hand In one OF its
minor The claim OF this small creditor
WAS pressed with perssency entirely at variance with
the amount involved. ct time when was physically
unable to respond An extension was asked and agreed
TO- one day and the agreement violated by him on the
next and his claim pressed to suit. Settlement was made
in full but the busy tongue Of set wsgging In
the coal community OF No. Broadway, where this con-
tumacous creditor and Immediately the credit
which was formerly freely accorded TO the Consumers
Coal Company In the purchase Of needed supplies. was
withheld.
Then followed what seemed 10 have been combined
attack OF all the interests the coal trade which have
held the Consumers Company to be nimica 10 undermine
and break down organization which ha been unable
to withstand
The Company s 1. stands today has assets in excess
OF It's liabilities in plant good will fixtures and outstand
ing accouns It's cenags second to Of tho retail
dealers in the city It's facilities for doing large business
with less price than retailers and rs proximity to
the wealthy residence district OF the city, has brought
antaQonism from the general retail trade which has in
one instance caused the president Of this company TO in
stute suit for damages In the present emergency
for the impairment OF its srsdit.
am ready TO meet when physically able all the
creditors OF tho company. with fair statement OF lie
condition which should fail to convince them of IFS
entire sowency; ability TO conduct ana continue Its
business 70 the end OF payment in full OF all obligatous
and with reasonable support from the trade or It's present
creditors q remunegative bust n the future