The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-02-06
JOHN Z. SULLIVAN FAILS.
A WHOLLY UNEXPECTED COLLAPSE.
Lack of Ready Funds the Immediate Cause
of the Disaster-FuIl Statement of His
Business-His Flight TO
Canada.
From Thursdays Sentinel. ]


John j.. Sullivan, clerk of Marion county and
the largest poultry dealer in the world, made
an assignment yesterday afternoon for the
benefit OF his creditors. To those who judged
Mr.. Sulliyans prosperity by its superficial APP
pearance, the announcement came as a shock,
but there were many who have known that Mr.
Sullivan has been seriously embarrassed
financially for some time. His troubles cul-
minated couple of days ago in having two
checks amounting to 5000 returned dishonored
from New York City. He had previously ex-
hausted every available resource from which
he could obtain money 10 stave off the i'm
pending crisis, but it appeared that on this oc-
casion he had come to the end of his string.
lie made every effort possible to secure the
money to keep his notes from going to protest.
and at last, being driven close to the wall, he
called meeting of the sureties on his official
bond as county clerk and also the bOndsmen
of the county treasurer. he being large debtor
TO Treasurer LOftin.
The meeting was held yesterday morning at
Mr.. Sullivan's office at the poultry house on
Maryland-st. There were present Mr.. Sullivan
and his bOndsmen, James T.. Renihan, James
COnaty and w. X. SprOule, and DIR. Sample
Loftin, county treasurer, and his bOndsmen,
John J. Cooper and Franklin Landers. AttOr-
ney Henry Span also attended the meeting in
Mr. Sullivan was asked TO state his case and
after speaking of the dishonored drafts, said
that it was absolutely necessary that he should
raise some money on the notes or they would
go to protest.
"HOw much money do you want, Mr.. Sulli-
van" asked DIR. Loftin.
well, think 5000 will tide me over for
the present" replied Mr.. Sullivan.
The bOndsmen then proceeded to talk the
matter over among themselves and there
IN q n nIgnOSftIOp tn he
amount. But in n few moments afterward Mr..
Sullivan's attorney interrupted the consultation
and announced that $4,000 was the least pos
sible sum which would be of any value in the
emergency.
Mr. COnaty then announced decsively that
he could not stand that amount and the other
bOndsmen also declined to advance such sum
in the face of their other loans. Every
persuasion at the command of Mr. Sullivan
was brought TO bear upon the bondsmen to get
them to take more conciliatOry stand, but
they remained obduTate. There was no escape
then left but assignment. Nevertheless hope
not abandoned all at once and Attorney
Span and Mr.. Sullivan made a last despairing
effort to raise the required amount. The
attempt proved futile, however, and in a short
time the necessary transfers and deed of
assignment were made out and filed in the
county recorders Office. Philip Gapen,
trustee of the insane asylum, was named as
assignee.
Mr. Sullivan's financial condition can be
summed up by stating that his assets are about
$4,000 and his liabilities about $4,000. His
principal assets consist of a farm in Decatur
township valued at $4,000, consisting OF about
two hundred acres; the Maryland-st poultry
house, valued at about $4,000; two dwelling
houses on Brightest, worth probably $4,000; a
dwelling in Belmont valued at $500;
a farm of 200 acres in Fulton county worth be-
tween 5000 and $1,000; the branch packing
house at Terre Haute, valued at $4,000, and
his private residence on n. Tennessee-st.,
valued at 5000 These properties sold at a
fair valuation would make his assets nearly
$4,000. But this is taking a very hopeful view
of the situation, they are all
under the sheriff7s hammer, or sold
at forced sale, will not yield over $4,000.
There is due on the Maryland-st. property a
purchase money mortgage OF $1,000, an indem-
nifying mortgage to James Renihan, one of his
bOndsmen, for $4,000 (which must be satisfied
before ALI, and mortgage 10 County Treasurer
LOftin amounting to 81, 600. Mr.. LOftin claims
to be amply secured by an indemnifying third
mortgage an the Maryland-st. house for 5000,
first mortgage on the Terre Haute
concern for $1,000 and first mortgage on the
Belmont property for $1,000. 1t will thus be
seen that If the MaTyland-st. property sells at
the fair figure of S35, 000 and the first two mort
cages are satisfied that $4,000 will be left
According to these figures, Loftln's total secur-
ity will amount to only $4,000 while he holds
notes and mortgages for 81, 600. Thus Loftin
will lose at least 1000
Mr. Sullivan executed chattel mortgages on
the personal peoperty on the farm in Decatur
township and his residence 400 y. Tennessee
St, first, to Mr.. Henry y. Spaan for 81 500;
second to Mr. Charles j. Many for $1,000, and
third, to Mrs. Annie L. Sullivan for $4,000
These were preferred creditors, and il is de-
sired especially to be stated that Mr.. Many is
amply secured for all money loaned 10 Mr..
Sullivan.
Nothing can be stated positively about Mr.
Sullivan's poultry business as this was carried
on altogether on the outside. Still, it is not
| thought that the losses there will be heavy. as
| that business is necessarily cash one. The
borrowed money, all OF which seems to be
amply secured, was put in this business while
he paid cash for all his produce.
Mr.. Sullivan's income has been very large,
| he making the statement that his poultry bust
ness Melted him $4,000 last year, his Terre
| Haute branch $1,000 and his county clerk in
| come $4,000 per annum.
1t seems remarkable tina. IL. the face
of this large income he should be-
come so hOpelessly involved. How
ever, he been subjected TO great drains.
lie says that he expended $4,000 in his race
| for the county clerkship. He paid the entire
expense OF all parties connected with the tally
sheet trials. 1t is said that he. paid alone to
| Judge McNutt OF Terrc Haute $1,000 in attor-
ney's fees for defending the conspiracy trials.
| Then again Mr.. Sullivan has branched out i'm
his business very extensively during the last
| two or three years. lie expended $4,000 for
his ice machine at the Maryland-st. house.
| This is the largest, finest and most complete
| plant for the poultry business in the world.
| His farm IN Decatur county has been a toy on
/ which he has expended thousands. 1t is
stocked with choice horses and cattle of the
| finest breeds.
The clerks office will probably show that
| Mr.. Sullivan has overdrawn his account at
| least thirty thousand dollars. This sum- how
| ever, can be easily replaced with the ordinary
| income of the office, unless the workings of the
| office are interrupted by creditors filing suits
etc, which will prove very costly. Mr.. Sproule
| says that he can pay out every dollar unless he
has TO expend the income in court costs and
attorney fees.
| SULLIVAN SUDDENLY LEAVES TOWN