Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-11-25
THEY STRUCK A SNAG.
Thomas Fawcett e. Sons, Coal 0per-
atOrS, Become Embarrassed.
ELIMINATION OF OLD TROUBLES.
The Sheriff Seizes Their Property, but All
Debts Will be Paid.
FINANCIAL CIRCLES ALL SERENE

y
ment that Thomas Fawcett & Sons had
struck a financial snag that threatened
failure.
This feeling was intensified when it was
learned that the Sheriff had levied upon the
firms property in the interest of the Central
Bank of this'city. This institution issued
judgments ana executions against the firm
for S165, 900, which stand as first liens on all
the property of Fawcett s. Sons, thus doubly
securing the bank for the loans mentioned.
Outside of people directly interested, the
news created little interest The senior
member of the embarrassed firm, MI. Thomas
Fawcett, is in New Orleans. His son,
Captain James Fawcett, was at the office
all day long attending to business, and dur
ing the afternoon was seen by DISPATCH
reporter. He said:
"We do not object in the least to having
the truth told about this trouble. In fact,
may follow.
THE CAUSE OF THE FAILURE.
"The firm is embarrassed. This state of
affairs was brought about by various causes
has been bad, but we would have risen
superior to this handicap had not other
matters over which we had no control con-
fronted The firm owns property in the
shape of coal lands boats, landings, ETC., from
Webster. on the Monongahela river, to New
Orleans. We are in condition to pay every
dollar we owe and have something left. This
is true, even if some of our property has to be
sold under the hammer, though of course we
cannot give away what we have and come out
even."
"Wil you state what the liabilities of the
firm are?'
II prefer not to do So Just at present. will
not say that it is none of the pubic's business,
but when tell you that our creditors are men
who will not be affected by our trouble. you
can see that it is largely matter between
them and the firm"
"Wil you resume operations again?"
I'VE may and We may not. 1t would be use
less for me to give you definite answer to this
question one way or the other just at present.
That will be decided later. There is one thing
about it, while there is no doubt plenty OF
money in this city at the present time. it seems
to be very close. and a man could hardly raise
ready cash on Government bonds. Now if
should talk TO you all night could not tell
you more of the situation as it now exists"
At the Central Bank of which Mr.. Thomas
Fawcett is President, everything was as serene
and lovely as a May morning They confirmed
the statements regarding the legal steps that
the Indebtedness of the firm sl65. .OOO was
amply secured. The officials said the total in
dehtedness of Fawcett & Sons was probably
s40O000, while their assets would reach fully
S60000Q They had not the slightest anxiety
about the outcome of the trouble, as it would
be cleared up satisfactorily to all parties inter-
ested.
NO FEARS BY FINANCIERS.
One of the best evidences that the embarass-
ment of the firm had created no stir in fnan-
cial circles was found when a reporter entered
the Germania Savings Bank. The officials,
from top to bottom were entirely ignorant of
the matter, and this was at $3.50 o'clock in the
afternoon. One of the gentlemen said that at
noon he had met several local bankers. and
they had a genera! talk about local affairs
The Fawcett trouble was not mentioned, as, IN
fact, it was not known. The unanimous opin-
ion was that the business of this city was on
thoroughly sound footing, and that there were
no breakers ahead.
There is plenty of money in Pittsburg" con-
tinued the gentleman but in accordance with
the conservative methods of our bankers, it is
not being put out very extensively. l don't
know much about Fawcett & Son, but their
trouble is not factor in financial circles"
The officials of the First National Bank had
heard general mention of the Fawcett sus-
pension. but knew nothing as to the details, not
having taken the trouble 20 make any inquiry
about it. They were satisfied that the firm had
ample assets 10 pay every dollar of its debts, or
at least they had been so informed, and thought
this was sufficient for the parties most inter-
ested-their creditors.
Mr.. w. Fl. Brown, Jr., of the well-known
firm of W. H. Browns Sons said that he could
see no reason for any other coal operators to be
embarrassed on account of the Fawcett failure,
as that company was independent of any other
concerns except its retail interests In Cincinnati
and New Orleans. "The creditors of Thomas
Fawcett will receive their money, dollar for
dollar" said Mr.. Brown. 81 know personally
that the assets are more than the liabilities,
and it is only 4 question of time until he can
straighten around and get at his money The
money market is such at present that he could
not borrow from the banks, and even if he
could there was no inducement for him to have
done so. There has been no money in the coal
business for year or so, and there was no en-
couracment for him to try to pun through.
Captain w. w. O'Neil said that the failure
would not effect the river business, and his
opinion was shared by the majority Of the coal
operators.
IN BUSINESS FOR FORTY YEARS.
Captain Thomas Fawcett laid the founda-
ton for the firm in 1850, when he began ship
ping coal to New Orleans. During the war he
and Commodore Joseph Walton made hun
dreds of thousands o. dollars furnishing coal to.
the Government and to private interests. In
the panic of 1873 the captain lost a lot of
money and he also was a heavy loser in the
firm of Ball & Co., of Canton, O., agricultural
implement manufacturers.
The Captain had added very extensively to
the commerce of the rivers, during his time
Among the steamers he has built are the Boaz
Painter No. Ormsby. Lion, Dart, Oakland
Acorn, Boaz No. 2 Maggie and Convoy The
firm ranks fifth among the operators and
shippers of this city. The first is Walton &
Co. Then comes W. H. Brown & Sons. w. W.
O'Neil d Co.. and John a. Wood & Sons.
The court records show that the exact
amount for which the execution was issued
against the firm by the Central Bank was $685.
ISL 81. The parties named are Thomas Fawcett
James I. Fawcett and Thomas Fawcett, Jr.,
comprising the firm. The execution was issued
on a confessed Judgment for $50. 3l5 0S, double
the amount of the real debt. A judgment
amounting to about S2l 900 was entered against
the firm at Greensburg on Saturday.
In speaking of the failure yesterday, q gen.
tleman who is familiar with the situation said
that Fawcett & Sons received severe setback
in the failure of the big coal syndicate known
as the Pittsburg and Southern Coal Company
The company was made up of the leading oper-
ators of this section. and Fawcett & Sons were
heavy stockholders. The firm went to the wall
through certain members going into the cut
throat business. as two or three leading men,
bers aIlege, and not living up to their agree
ments. Shortly after this failure Captain Faw-
cetU sold his residence. on Craft avenue, to Mr.,
d. p. Reighard for Sl35, 600