Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-09-12

Through the action Of one Of the largest New
York banks, ct It, direesors' meeting yesterday
moring, the financial embarrassment Of ex-
Congressman Ellis II. Roberts, now assistant
treasurer Of the United States, in charge of the
subtressury in New York, will become public.
The counsel Of the bank, Messrs. Stern l.
Meyer, have been instructed TO bring suit
against Mr.. Roberts, and have informally
notified him Of their instsucsion. Il had been
hoped by Mr.. Roberts friends that he would
be able to make private arrangements which
would put him upon his feet again and spare
him the vexation and humiliation of litigation.
But the efforts which have been going on for
some time have proved futile, and there seems
TO be nothing left but for his most clamorous
creditors 10 appeal to the courts, obtain judy
ments, and get such satisfaction as is possible
out OF such property as can be found
When Mr.. Roberts came to New York CITY to
take tho office of subtrsusurer q few of his
friends knew that no was in serious financial
trouble. Yet tho confidence in his personal
honesty and absolute integrity Of character
was SO great that he had little difficulty in &C.
curing the great bond required Of tho sub
treasurer. To his friends Mr.. Roberts frankly
confessed that the salary OF the office was an
important consideration for him, inasmuch as
he would be almost entirely dependent upon it
for his support This seemed pitiful confess
sion for the man who had for forty years prac-
tically owned and controlled the leading repub-
lican newspaper OF central New York, the Utica
Herald Fifteen years ago the Herald was es-
teemed one Of the best Newspaper properties
in the state outside of New York and Brooklyn.
It had o large circulation and . fair business
patronage. Mr.. Roberts,, besides being the
editor OF this paper, served several terms in
as . member Of the House from the Utica dis
trict. He has therefore had the extreme mis-
fortune Of passing from . position Of financial
independence to that of extreme embarrnss-
ment. practical bankruptcy and with suits for
large amounts impending, for as soon as this first
suit is dockesed it is thought likely that his
other creditors will be compelled also to pro-
cure judgments to protect their loans.
To some of his friends, who have been en-
deavoring for O few weeks to make compost
individually and the old Utica Herald owed
nearly e200, 900; $3.50. 900, as nearly as they
could figure Part of this sum represents debts
Of the Utica Herald incurred before Mr..
Roberts became assistant treasurer Of the
United States. The debt of which Stern d
Meyer are now preparing the papers for litga-
ton is for %, 900, borrowed Of one Of the New
York banks, but before Mr.. Roberts became
subtreasurer.
Since he entered his Office his friends have
discovered that he has secured loans from sew
eral OF the city banks, amounting to consid-
Sa"D'o 0uAh AZ VIC 0SeEoButc. hisHOuku IL -
regarded as purely q case Of business embar-
rassment, yet some of the bankers are disposed
to be little severe, because they think Mr..
Roberts should not have asked for loans when
he knew of the insolvency of the Utica Herald
property. When he found that his creditors
were pressing him to the wall he made q prop
osition to pay them Is cents on the 81 in cash,
or 30 cents on the 81 In stock of the reorgan-
lied Utica Herald. Some Of the creditors were
willing to make this composition.
few months ago the insolvency of the Utica
Herald was made public by the application for
the appointment OF receiver. Mr.. Roberts
himself was appointed receiver for the prop
erty and, although some surprise was expressed
at this appointment. yet it was entirely salts
factory 70 the largest creditors and was par
ticularly urged by the chief creditor, ex-senator
Warner Miller. A plan Of reorganization was
agreed upon and II was expected that when the
insolvency proceedings we're ended and the re-
organization consummated the paper would
begin new career of prosperity. The opinion
OF business men who have looked into the mat
ter Is that the trouble really began when Mr..
Roberts put up an expensive and handsome
building, selecting therefor site which seems
now not to have been q wise one.