Crawford avalanche. (Grayling, Mich.) 1879-19??, 1890-09-11
He RUINED HISFATHER.
Sawyer. Wallace a CO., of New York, Fall
for E2,OOO.OOO-The Trouble Caused by
the Reckless Spoculations OF Young MIR.
New York dispatch. ]


for S2.OOO.OOO-The Trouble Caused by
the Reckless spccuIations OF Young MIR.
Sawyer.
New York dlspatch.l
Sawyer, Wallace & Co., of New York,
Louisville, and London, the largest gen.
eral commission merchants and brokers
in their line in this country and perhaps
in the world, have suspended payment.
II is an absolute and irretrlevable col
lapse and the large capital of the con-
ccrn is completely wiped out. 1t Is Inn
possible as yet TO ascertain the extent of
the firms liabilities, but they are roughly
estimated by members of the house to DO
upward Of 81, 100000.
The failure was caused by prolonged
and useless speculation and, IL is be-
lieved, the indiscretions of i. W. Saw
yer, who has charge Of the London Office
of the concern and controlled practically
all OF the European option business,
which was very extensive, as Sawyer,
Wallace, & Co., had 1870 agents, embrac-
ing every city in Europe.
The firm has no membership In the
Stock Exchange, very little Of its busi-
ness being In that line. But ii is repre7
Petroleum Exchange, the Produce Ex-
change, the Cotton Exchange, the Cof-
fee Exchange, and the Tobacco Board Of
Trade.
While members Of the firm and their
representatives made no attempt to con-
ceal their lamentable plight, they were
personally disinclined to expose the
| treachcry of the trusted servant who
was the cause of their ruin, and whose
venerable father, the senior of the firm
he had betrayed, was bowed down with
this double afiliction-tho wreck of his
N,ssvtsssys,sy-
From unquestionable authority q re-
| porter learned some cf the wretched de-
| tails of the operations which led up TO
the disaster. For many years the option
business of Sawyer, Wallace & Co. for
customers in Europe has been very large,
especially in the way Of specializing in
| grain and provisions on margin on the
New York Produce Exchange, besides
which they handled many contracts
| from this side for the exchanges and
bourscs of Europe.
This European business grew so large
that, for the purpose OF handling it more
| eXpedltiously and economically, it was
| deemed desirable to open branch house
in London. Five years ago this was
done, and Lucius Willard Sawyer, eldest
| son of Samuel A. Sawyer, the head of
| the firm, was placed in charge of 1t, with
control of the firms option business in
| oil parts of Europe. There were $50
| agents in the various cities Of Great
| Britain and the continent, and all these
| who handled orders for option trading
4 ness TOR sawyer, w NaIIace ~ Co.. through
| the London branch. This, of course,
gave Mr.. Sawyer the control of q vast
business and the handling of enormous
amounts of money In the shape of mar
gins and collaterals.
| l.. w. Sawyer Is man now over &c
years OF age. He was employed in the
| home Office In New York in his younger
| days, but for fifteen years or moro has
| lived most of his time abroad. He is
| married and has family. While he
| was at one time a little distrusted by
| some of his shrewder friends on account
| of tendency toward ihjudicious flyers
| in the speculative markets, they had
| hoped that these were merely manifesto
| tions of youthful indlscretlon, and that
| he had reached time Of life when a
man should know better, especially one
in such responsible and lucrative po-
sition.
Early in the present year, however,
certain things came to the ear of the
home Office in New York which led them
to fear that the London manager was
speculating on his own accnnnt. hut
when Mr.. Sawyer was communicated
with by his father he denied the charge
strenuously. This lulled suspicion for O
time, but early in April there was re-
newed and still stronger ground for be-
lieving that something was wrong in
London. Mr.. Sawycr's drafts on New
York were suspiciously heavy and fro
qnent, and his reports as TO the finances
of his Office were quite unsatisfactory.
His father, the senior Mr. Sawyer, de-
termined TO hasten his annual visit oi
inspection and sailed at onco for Lon
don. His discoveries as soon as he or
rived were of the most alarming charac
ter. lie found that his son had deceived
his employers and had been specializing
rccklessly and disastrously.
His dealings had begun two years be
fore, when he went into a big pork deal
buying enormous quantities for rise
and he used not only his own money bui
that of the firm. These purchases wer,
made in New York and Chicago, hi
operations being conducted by cabl,
| III Niby III bhO II AON
uce Exchange and the Chicago Board o
Trade. There had doubtless been &C
casions while Mr.. Sawyer himself stoo'
in the provision ring on the Produce Elk
change making purchase or sale for
customer when the broker secretly en-
ployed by his own son In London was q
his side operating against him.
Ono of the schemes of Sawyer, Jr., bat
been the simple one of cabling TO New
York orders for purchases or sales, rep
resenting that they were for the accoun
of customers, and that the margin
were on deposit in the London Office
The fact was, of course, that thes
speculations were for Sawyer's own &C
count, and there was no margin to talk
them up except the firms credit.
"We hoped up to tho last" said
member of the firm, despondently, "bu
three days ago we gave IL up and kneN
that we were swamped. We postponed
making an assignment as long as pos
sible, so as to close up as many OF ou
small contracts as we could and gatbe
I'm the loose ends. We have done on
best as honorable men, and we have SUI
rendered all our individual property T.
the assignee. But our collapse Is com
plete and final and the old house will
never resume"
Items. .of Interest.