The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1890-09-25

sources enables the Manufacturers
Record to set at rest whatever uncer
tainty there may have been as to the
effect of the failure of Potter, Lowell &
Co., of Boston, on the Southern en-
terprises in which they were inte--
ested, and for which their concern was
a sort of Eastern clearing house. The
announcement of the failure caused
considerable comment in Southern
financial circles on account OF the good
enterprises in Texas with which the
firm was known to have some ccnnec.
ton. Our aGvices are that the en-
barrassment to these corporations will
be only temporary and will not inter
iere seriously with the projects they
have under way. They will be brought
out of their difficulties through friendly
receiverships.
Potter, Lowell & Co. in their jan
| udry SJaJelHellI sHo"ou " luliS POI" Vi
capital of 100000 and a surplus Of
100000, all Of which will be wiped
out. They did business last year Of
about $64,OOO,O00, mostly in paper
which they had discounted in New
England banks for New England and
Southern customers, and it is thought
thas several millions of this paper will
unexpectedly have to be liquidated,
O wing to the failure.
The trouble seems TO have had its
origin in Gogebic mining ventures
and transactions with the concern OF
Shaw & Co., the magnitude of which
is indicated by the fact that the as
signee has attached the latter firm for
an account exceeding 81 100000.
Potter, Lowell & Co. had managed
large transactions lot Texas, but the
Boston papers agree that these in
vestments were in the main success
full ventures and that they were
cornered in Juggling the tanneries and
other enterprises in the East. They
responded to calls for ST. 100000 in
three days, but the pace was so
rapid they had to quit. 1t is thought
new concern will be organized to
buy the assets of the suspended firm
and attempt to carry on the business
As to the Texas business of the firm,
they were carrying w, M. ID. Lee and
Abner Taylor, member of congress from
Chicago, for 100000, the proceeds Of
which went into the Brazos River
Channel and Dock company, corpo-
ration that is successfully building the
deep water CHI nuel on the Texas coast
The company itself never had any
paper out except some bonds as col
lateral to protect the Lee and Taylor
advances. A receivership for this
company and Lee and Ferguson, which
firm is also interested, is probable,
with Major Evans of Austin, and
Geo. w. Angle of San Antonio, both
directors in the Brazos company, as
the receivers. This course is considered
best, in order that work may not be
stopped. The other directors in- this
company, who are Thos. j. Hurley,
United States Senator G. B. Farwell,
Major Evans and Hon. Chas w. Ogden
and George w. Angle, of San Antonio,
are not in any way involved In the
financial difficulties growing out OF
the failure.
Potter, Lowell & Co. were owners OF
the control of the Fort Worth Land
and Street Railway Co., of Fort Worth
and as the latter is indebted to the
Fort Worth Loan and Construction
Co.. the Pullman Car Co. and the
Detroit Electrical Works for about
100000, it will pass into the hands
of receiver to protect those accounts,
which may lead to the consolidation
of all Fort WCrth's street railroad in
terests.
| The suspended firm had large in
terests in the Austin and Gainesville
street railways, but those corporations
have no floating debts and are in good
financial condition, and the control is
owned by the Hurleys of Fort Worth,
so that the failure applies to the stock
held by Potter, Lowell & Co. alone,
and does not affect the corporate
property.
The Iumors connecting the firm OF
j. V. Farwell & Co. of Chicago with
the failure grow out of the fact that
all their paper was handled by Potter
Lowell & Co., who also raised the
SO 100000 with which the Farwells
and Abner Taylor built the
state capitol of Texas. ]. V. Far
we'll was given as one of the directors in
the defunct company, and the claim
is made that under the laws of Massa'
, chusetts he is responsible for the firms
DEBTS, but he asserts that he is not
legally a director, never having been
informed of his election. He does q
$20,000,000 business in Chicago, and
/. was connected with Lee e. Ferguson
in their Texas enterprises. 1t is stated
, that the Worcester Steel Works Ii
crippled by the failure and is likely te
go under.
f The total losses by the failure are
S5, 100000 according to outside esti-
mates, but, as we have shown, none o
, the Southern enterprises involved are