New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-19
P.w. GALLAUDET & co. GO UNDER.
LIABILITIES ABOUT 100000 WHICH THE ASSETS
WILL MUCH MORE THAN covER-sUS-

ABOCT SSOo'ooV "@iA~N
WILL MUCH MORE THAN oovER-sUs
PENSION OF WILLIAM F. OWENS
The failure Of p W. Gallaudet g. Co.. Of No. Wall
st.. was announced in the Stock Exchange at lo 3o
a. M Yesterday. An assignment of the firm to c.
Elliott Minor had been filed In the County Clerks
othce late Monday evening. Mr.. Minor took charge
Of the firms affairs yesterday morning. and at noon
issued the following statement:
.Our failure was brought about by the calling in OF
oans by banks the securities pledged for which had
DEPRECATED largely in value through the recent de-
cline in the market. We have other securities but
the decline them also has been great that the
hanks refused To take them at all. The future OF
tr firm depends largely on the action OF the institu-
tons holding these loans. We hope and fully believe
that our assets will be sufficient to pay of our in
debtcdDess and leave handsome surplus besides
While IL is too early to make any definite statement,
ne think that the liabilities will be about 100000 or
e9o0,0OO'
The failure was not unexpected in the Street, as
p W. Galiaudet & Co. were known to be in difficulty
hst week. In the assignment the following prefer
mocs were given Margaret GaIlaudet 100000;
Fraser, Minor a. Co., $4,000, and c. Elliott Minor,
$4,000.
Mr. Gallaudet said that the assets of the firm were
considerably larger than their liabilities. I'VE carried
fair class of stocks" said he but the banks require
that every security be gtedged. Hence some OF
Our securities unavailable in tho present stingency
Of the money market. Every demand on up to this
morning has been paid, and we have no outstanding
contracts. Our assets composed of stocks and
bonds and include no commercial paper We do not
ret know the exact amount of liabilities but as
said. they less than the assets. We expect to
pay up everything and resume business"
The assignee Mr.. Minor. said last night that the
liabilities of the firm were certainly 10000
statement of the assets will not be ready until this
afternoon.
Reports were circulated that p. W. Gallaudet & Co.
mo
forgery and had also lost heavily through connection
with the Poughkeepsie Bridge. Both of these reports
were emphacaly denied at the office OF the hrm'
where il said that they had lost nothing through
forgery and had closed out their interest in the Pough
keepse Bridge two years ago.
The firm as at present constituted, is composed OF
Peter W. Galaudet and Henry Fitch, jr., and dates
from February 1, 1875. Mr.. Fitch is the Stock En-
change member and has been in the Board since De
cember 80, 1872 He has been In Wall Street since
boyhood, and for many years was with ADDISON U
Jerome But the name Of P. w. Gallaudet is one OF
the Oldest in Street. the house which preceded the
present firm having been founded nearly forty years
ago For years its Offices have been In the same
ocalty-formerly the southeast corner Of broadway
and Walst. and in the big building No. Wal[st.
since 1t was opened to tenants. The original puf-
poses of the firm TO deal in commercial paper
onv in the last few years has it extended its scope
from brokerage into Stock Exchange transactions.
The new departure has not proved success put per
hans this was duo to the Identifying itself
with ventures that not been uniformly successful
The firm undertook the floating OF the bonds OF the
pougkeepsie Bridge Company and Is believed 10 nave
been compelled to indorse the company's notes to
considerable extent The str1ngency In money mas IN
terfered greatly with the negotiation OF securities Oh
many new enterprises, and after underwriting an I'M
bond the burden Of It's failure fell upon
GaIlaudct a. Co. The paper handled by the firm was
not only that Of railroad companies. but OF rupocr
manufacturers iron manufacturers and metal ana haio
ware merchants Tie house at one time conducten
much OF the discountng required by the Roach snip
wards Mr. Gallaudet is advanced In years. lie
started in business alone but for few years prior W
1878 he had as associate Mortimer Drury, who Is now
dead Tbroughout its tho firm has been mghiy
esteemed for its honorable dealings, ana athousn ie
ANTIQUITIES have been known for few Gays mere -
Common expectation in Wall Street that VIII sun Ue
ebIa IN snrmoupt them. It had no outstanding con
tracts at the Stock Exchange. and us SUSPENSION Is
Understood TO be merely question OF loans. ~ q
the failure Of william F. owens Druhei, W NO,
rxcbsnss Court was ANNOUNCED yesterday aierhoon;
Fare was no assignment, and statement was ssueo
s IN the amounts of assets ana hapintes IuI rn
tSa difference between the two would not Dc ore
than al 900 The cause of his failure was MS nsoiS
TO realize his securities. . A. S.ocr Exchanre IN
,scu Seyen wears later he entered the nrh OF OMeis
q Mercer which went under In tne pan h 1a,,h es
~ since then he has done WHAT Is Known o. q
3 do;Iar business He taken SICK last rrlody
nS vas ordered South by his physician IT, ea ,iIe
that II he had been able to GET on eiT NJ Owens is
might have been averted. fe eh csnct Exchange
SAID N have been popular In the StocA IA'"""s0