Fisherman & farmer. [volume] (Edenton, N.C.) 1887-19??, 1890-12-05
A PHILADELPHIA CRASH.
The Old Banking House of
Barker Bros. & Co. Fails
The Firms Liabilities Estimated
at 100000.

A tremendous sensation was created at
noon few days ago in Philadelphia, Penn,
when the failure of the old banking house Of
Barker Brothers & Co. was announced on
the Stock Exchange The firm is ffty.eight
years old and the third greatest banking
house in Philadelphia.
Excepting the first rec -ivarship OF che
Philadelphia and Reading Railroad Com
pany no event in financial circles OF that
city since the historical failure Of Jay Cooke
has created more widespread interest ana
greater excitement
The formal announcement OF the suspen-
sion of Barker Brothers & Co by President
Adams, OF the Stock Exchange, from the
rostrum about noon created q verltable SEN
sation. Brokers fairly held their breath
with amazemcnt, but as the firm did not do
q speculative business and had no outstand~
ing contracts Of any Importance on the -
change, the failure had only an Indirect
effect on the general stock list.
The moment the announcement of the
failure was made there was rush to find out
what it all meant. The Office Of the firm at
Fourth and Chestnut streets was beseiged by
a continuous stream Of people In search or
details respecting the cause ana e1tent OF
the misfortune. Shortly before two o'clock
the doors were closed and Waterman was
stationed in the entrance with orders to ad-
init no one unless with the consent OF one or
the firm. Friends and customers or the firm
flocked to the office, anxious for information
about the failure.
Wharton Barker. the principal member OF
the firm, was absent, and Abraham Barker,
his father, had little to say. The clerks were
busy at their desks and the throng of anxious
callers received little information. Abraham
Barker, the venerable founder Of the bank,
seemed overwhelmed by the catastrophe
which had befallen it. Mr.. Barker is ono OF
the best known financiers in the country and
was formerly President Of the Stock Ex-
change.
There was little to be said Mr.. Barker's
announcement was simple and was couched
in this language: This assignment is un-
avoidable. We hoped to be able to avert it,
but it was impossible. People who owed us
money and upon w1om we de-
pended did not pay us. We ex-
pected that they would do so, but
they failed to meet their engagements and
now we have failed to meet ours. That is all
that can be said now. OF course the con-
dition of the money market has n1uch 10 DO
with the trouble. The step was necessary
for the protection Of our customers"
The firm has not yet prepared any state
ment of the liabilities and assets. The llablll-
ties are variously estimated from So, 600, 600
to SIS, OO0, O0O Wharton Barker has assured
some of his friends that their assets exceed
their liabilities by over 81 900, 600.
The failure has been caused largely by
various unavoidable railroad Investments
Barker Brothers 6 Co. were identified
with number CT railroad schemes which
prudent financiers and capitalists avoided,
and when the money stringency came
they found it impossible to realize upon
them. Among the railroad securities with
which Barker Brothers & Co. were Identified
in recent years were the Ohio and Northwes-
tern. Oregon Pacific, San Antonio and Aran-
sas Pass, and Charleston Cincinnati and Chi
cago. Or "Three Cs," as it is Familiarity
termed on the 'street."
The Ohio and Northwestern Railroad broke
down some time ago, and its bonds, which
Barker Brothers s. Co. purchased and q
large block of which is now held by prom
nent financial institution, are selling far be-
low par.
The San Antonio and Arkansas Pass Rail
road went into the hands of receiver on
july A. It had heavy floating debt, and
holders of $13, OOO. 600 of the bonds applied
for the appointment of a receiver. The
Board of Directors of the company declared
that the bondholders would get their money
ami advised them not to sell out.
The Charleston, Cincinnati and Chicago
Railroad is an unfinished road in which the
Bankers were interested. They advanced
large sums to the company, and it is prob
able that some Of this money has not been
paid.
Brothers G. Co. are Abraham Barker and
his son Wharton Barker. The firm was
established in 1912, Abraham and his
brother Andrew being the partners. Whar-
ton Barker, Abraham's sou, was admitted,
and the firm name has been retained ever
since then. Twelve years ago there was a
sensation made in the financial world by the
announcement that the Russian Government
had selected the Bankers as their financial
agents.
There were both money and fame for the
Bankers in this transaction, and the Russian
Government decorated Wharton Barker will
the title of Knight of St. Stanslaus.
Wharton Barker was the leader in the re
cent independent movement which resulted
in the defeat of Delamater for Governor
He has long had political ambitions.