The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1890-12-05
suspensIon of Johnston, Buck :. Co.

morning about balf~past ten O'Clock that
the banking firm of Johnston, Buck * Co,
of this place, had suspended was calculated
To quicken the business pulse of the CON-
munity and the news spread with almost as
much rapidIty as an alarm of fire. The bad
news was, however, too true. as card at
the window OF the banking house confirm
ed the report to all who wished to verify the
fact by reading for themselves
During the day the situation was the sole,
absorbing topic of discussion in the town.
In the stores. bar-TOOms, streeG corners, and
in fact, every place where two or three men
got together. the financial situation was dis
cussed and for once the local "bulls aud
bears bad a suTfeit or talk on finances.
The diIec: and sole cause for the suspes-
sion was the failure OF the banking house
of b. K. Jamison & Co.. of Philadelphia,
which occurred on Friday last. With this
firm Messrs. Johnston Buck * Co. did bus
mess and at the time of their failure had
deposited about $40. 900. This amount of
ready cash, suddenly taken from them and
tied up, was certain to embaIass them. and
fearing a run on their bank, Messrs. NJ. J.
i &. w. Buck. the surviving members OF
the firm. decided after a hastY consultation
To suspend.
On Saturday afternoon the members OF
the firm Informed number of their credi-
tors and caused the fact to be generally
known that they would meet them at the
| Opera House at 7:30 p. NJ. for the purpose
| of explaining tie cause of the suspension.
ana after a discussion of the situation. ar
rive at the best possible plan or settling
with their creditors.
In the evening at the time stated, a largs
/ number OF creditors met and organized by
/ electing Judge Barker as chairman.
Mr.. a. W. Buck. the cashier. then ex-
/ planned the cause of the suspension which,
( as we have stated, was due 70 the failure OF
| 3. X. Jam:son & Co., and read a statement
| OF the assets and liabilities of the firm,
I which he gave follows: Assets. $685.
$50. 81; liabilities, S238, ,44S 81. and stated
that II the firm was granted An extension
and given time to collect their assets. every
| obligat tion would be met and the firm con-
tinue In business.
IL was uniformly adm itted by all that IL
! the firm was compelled to make an assign
ment and the assignee to collect the assets
| by process OF law, 1t would be a calamity
that would be far reaching In its effects and
cause distress that would require years for
the community to recover from.
1t was suggested that q committee g of
creditors be appointed by the chairman to
examine the assets of the bank and formu-
late some plan for the adjustment OF the
suspended firms affairs, to report at a meet
ing TO be held on Monday night. The sug-
gestion was adopted and John Lloyd and
Webster Griffith, of Ebensburg, and John
w. Sharbaugh, of Carrolltown, were ap-
pointed. The meeting then adjourned to
await the action OF the committee.
On Monday evening the adjourned meet
ing was held and the committee reported
! that after a careful examination of the af-
fairs Of the suspended bank, they found the
liabilities to be S235, ,SI4 80; the assets to be
! S253. .S56.22; that the assets were all good
in fact, "giIt edged"-and that the firm
held less than $3.50 worth of paper that
could not be realized upon.
Messrs. Johnston. Buck s. Co. then made
the following proposition, which was the
best possible plan that had been suggested
to them.
THE PROPOSITION.
The firm of Johnston, Back & Co. make
| the following proposition 10 their creditors
| to take effect in the event of the plan of the
committee appointed at the meeting on Sat-
! ss
! cepted by their creditors:
1sI. 81. j. Buck and a. W. Buck, two OF
! the members of said firm, will confess
| judgment, or place a mortgage or mortgages
! for the full amount of the value OF the
| properties enumerated elsewhere in favor OF
| a committee to be selected by the creditors
said committee to act as trustees in said
judgment, mortgage or mortgages for the
benefit OF creditors OF Johnston, Buck &
Co, ard the judgment TO be entered, or
mortgages recorded in every county where
said real estate is situated, TIE time when
such judgment or mortgages shall ia II due
is to be the first day of January, 1898.
End. They will pay their entire indebted
ness In the following manner, namely: On
Monday. the 9Th day of January, 1891, or
sooner at their option, II all signers to the
proposed extension are secured, they will
| pay each OF their creditors % per cent of his,
her or their claims. On the first day of
July, 1891, they will pay an additional 25
| per cent. 10 each creditor. with interest on
said payment at 1 per cent: from January
lst, 1891. On the 9th day of January, 1892
they will pay an additional 25 per cent to
| each creditor with interest on this payment
at per cent from January 1st. 1891. On
the lst day of July, 1892, they will pay the
final instaliment of % per cent. with inter-
est on this payment from January 1st, 1891.
The firm reserves the right to anticipate any
one OF these payments, in whole. at their
ootion, upon ten days notice TO each and
every creditor.
The properties upon which i. is proposed
to place the liens referred to are as follows:
| 100 lots of ground In Altoona valued at
$50 600, upon which there Is unpaid pur,
chase money of about 81 $50; one half inter-
est in 466 acres of valuable coal and timber
land in Summerhill township valued at
$1,000; fine dwelling property of NJ. j.
Buck in Baltimore valued at Sl4 000 upon
which there is unpaid purchase money Of
1000; oHe>hsIf interest in lot OF ground =,
house and store building in Soutt Fork val
ued at "a 600; Carrolltown Rank block val
ued at 50 900; fine dwelling OF A. w. Buck
and five lots of ground In Ebensburg valued
at IS 800; one-balf interest In lot of ground
in Wilmerding valued at 81 $50. making q
total valuation of $50, 400.
JOHNSTON. BUCK & Co,
NJ. j. BUCK,
| A. w. BUCK.
The proposition was favorably received
and after some discussion 1t was resolved
that a committee of three. consisting of Geo
M. Reade. AlYIn Evans and M. ID. Kittell,
Esquires, be appointed to draw up q paper
for the signature of the creditors. accepting
the suspended firms proposition. The
three gentlemen then ret ired to the law Of
fee of Mr.. KittelI, where paper in accord-
ance with the proposition was drawn up
and on their return was signed by forty-five
of the creditors, including some of the
largest depOsItors. and nearly all who had
remained in the house. On motion Il was
agreed that the chairman appoint three ger.
tlemen to act as trustees and plaintiffs In
the judgments or mortgages to be confessed
by the firm. for the purpose of placing the
real estate of the firm in hands of the
trustees for the security of their creditors.
The cha ir appointed Messrs. John Lloyd
and Webster Griffith, of Ebensburg. and
John w. SharbauRh, of Carrolltown. es the
trustees to be named in the bonds and mort