New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-04-18
A BIG FIRM IN TROUBLE.
SILK MANUFACTURERS ASSIGN.
LOUIS FRANKIE & co. UNABLE TO RAISE READY
MONEY-LIABILITIES 5000 900.


The silk trade was surprised yesterday by the
announcement Of the suspension Of the we'll
known firm Of Louis FRANKIE & Co., importers Of
raw silk at No 10 Grand-st.. and manufacturers
of thrown silk at Paterson, y. j. The partners
in the firm. Louis FRANKIE and Henry w. Struss,
made general assignment without preference to
Adolphus H. Sobcr, a lawyer.
Rumors had been current for several days that
a large silk house was in trouble, but the trade
had no idea that Lous FRANKIE & Co. was the en-
barrassed concern, as il had always stood well
and was supposed TO have a capital of at least
100000 The liabilities of the firm are said to
be upward of $eOO,O with nominal assets Of
81 100000. The embarrassment is attributed TO
inability to raise money to meet maturing obi-
cations, the stringency Of the money market, the
stoppage of accommodations by the banks. and
losses sustained by the recent failures in this city
and Paterson. 1t is said that the firm caught
in all the recent failures in the silk trade, that
it has been carrying great many small concerns
who do not pay promptly, and that it found great
difficulty in making collections. The outstanding
accounts are said to be large.
The house did large business, was liberal in
credits, giving large lines and long time TO GUS
toners 1t imported the bulk of its raw silk from
local market. 1t is said that it was among the
few firms which bought heavily of raw silk in
1855, when prices were very low, and 1t was sup
posed TO have made a large profit by the advance
in prices. 1t generally carried a stock of about
$500, 600. and sold the raw silk to the trade and
also manufactured it into thrown silk and yarns.
Its paper heretofore, had sold at low rates. as
gilt-edgcd, but recently, it is said the firm found it
difficult to dispose of its paper, although its
financial condition not questioned
From Bradsrcct's reports it appears that Louis
FRANKIE started in business about $50 in IA small
way "A manufacturer of silk dress trimmings
lie made money and increased his business. Mr.
Struss became Il partner in 1872. In 1876 they
started Il factory in Paterson, where they began
throwing silk, selling 10 trimming man
ufacturcrs, gradually working ont Of their own
manufacture of dress trimmings until 1879, when
they sold that branch of their business, il was
said, for S35. 900. In January, ls,5 Peter Busch
became partner and the style was changed from
Louis FRANKIE to Louis FRANKIE X Co. On Feb
ruary |, 1859. John g. Borescdc. who had been
for several years in the employ Of the firm, was
admitted rs general partner Both Mr. Busch
and Mr. Borgstcde withdrew from the firm on
January ], 1890.
chinery. cost il Is said. $500 600. and j. without
any incumhrancc Mr. FRANKIE il is said. also
own~i his house. at NO 81 last Scycnty-sccond-
ST. which cost $50 OOO. The inventory Of January
.. ls~D. showed assets Of Sll32.1OO: consisting
II merchandise. SOL PSI accounts and bills re-
ccivab,c. S2Hs,jl real estate and machinery,
5000. 600: cash. SiO.707: Office fixtures. : 500.
The liabilities consisting Of accounts and bills
payable. We're S5l9,s2o, leaving n surplus If S6l2-
$50
Mr FRANKIE said Yesterday that he did not call
the assignment failure. rs he felt sure il
only temporary embarrassment. for the firm had
"a good surplus Of over $500. 900 II was solvent,
hut was unable - raise money 10 tide the
difficulty. The liabilities. he said. were between
$500 600 and 900. 600. and the assets worth
200. 0OO in merchandise. accounts and property.
lie expected 20 have a statement ready in "A few
days which would show exactly how the firm
stand