Sacramento daily record-union., 1890-09-06
FAILURE OF A COMMISSION HOUSE
The Announcement Causes Great Sur
prise in Business Circles.

The Announcement Causes Great Sur
prise in Business Circles.
New YORK, September 4th.-The firm of
Sawyer, Wallace q Co., exporters of bread.
stuffs and cotton, and dealers in leaf to-
bacco, created a great surprise in business
circles to-day by making an assignment to
Marshall Ayres. The firm was estimated
to be worth between million and quar-
ter and a million and half dollars above
all liabilities. They were prompt in pay
ing for local purchases, and responded
promptly also when called upon to margin
their contracts.
a short time ago Miller made state
ment TO the effect that the firm was worth
more than 81 100000, that their liabilities
were merely nominal, and that they did
commission business only.
When the announcement of the failure
was made to-day runor gained circula-
ton to the effect that the firm was speeu-
lating largely of late in cotton. and the
market had gone against them 1t was
also said that the firm had been speculat-
ing in grain, and had lost heavily 1t is
believed that the firm have pretty well
protected their interests in this country,
aud that their chief losses, which they
think may reach 81 100000, will be in Lon
don, and mainly on their pork dealings.
A statement of their liabilities and assets
will be made as soon as possible.
CHICAGO MARKET AFFECTED BY THE FAILURE.
CHICAGO, September 5th.-The failure of
Sawyer, Wallace & Co, of New York, is
topic OF much interest here. B. P. Hutch
inson, a we'll l-known commission merchant,
says ne knew for two weeks past the crash
was coming. The principal interest of the
failed firm in this market was pork They
have been carrying cash pork for about
year. They undertook first to run deal
in October pork, but that wound up disas-
trously. They transferred it into January,
and it is reported that their loss on the deal
is not less than half million.
There was some excitement at the open
ing on Change this morning, consequent
upon the failure of Sawyer, Wallace & Co..
of New York, but it did not turn out to be
as considerable as was expected, as the
holdings by the deEunct firm was not so
heavy as at first reported.
LONDON, September 5th.-Lucien Sawyer,
who had charge of the business here of
Sawyer. Wallace & Co., of New York, says
The failure surprises me as much as it
does others. 1t is true large losses have
been sustained in both the home and for
eign business conducted through the Lon
don house, but it is not true my private
speculations caused the disaster The
failure caused much excitement in COM
mercial circles in London.
EFFECT IN NEW YORK.
New YORK, September 5th.-On the Pro-
duce Exchange there was for while this
morning some depression and lower prices
than last night for wheat because of the
exaggerated statements of losses in this
country through the failure of Sawyer,
Wallace d Co. As stated by the Associated
Press yesterday, they were well protected
in this country, and their liabilities are
chiefly in London. December wheat,
which opened at 81 04, sold of to 81 03s,
but quickly recovered to 81 04s.
The firm gave notice shortly after the
opening that it was even on the market
here for articles, and any outstanding con-
tracts would be settled on to- days market.
At meeting of the creditors at the Coffee
Exchange there was no excitement what
ever. At the Cotton Exchange the market
is better, since the firm had no interest
there of consequence. Generally speaking
the firm is ahead in all its New York deal
iDgs.
At 12:45 P NJ. the grain trade had a call
TO settle Sawyer, Wallace & Co.'s, grain
contracts. They found they had direct
interest in only two boatloads of wheat
but required the dealings to the extent of
forty-four loads to harmonic the trade
Wide estimates of their present interest
in pork, which will have to be closed out,
run TO 100000 barrels or more The price
OF pork declined 65 cents per barrel and re-
covered 20 cents.