St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-08-29
IN FINANCIAL STRAITS.
A Banking Firm in Boston Re-
ported to Have Failed.

A Banking FIRM III bOStOu IlC-
ported to Have Failed.
Boston, Aug. 2s.-Potter, Lowell q
Co., bankers, are in financial straits and
are reported to have failed. The busl-
ness of the house was most largely the
sale of commercial paper. 1t dealt lib
orally with its customers and with
banks, ana was prompt in all its en-
gagements, and there has been no more
popular note brokerage concern East or
West. 1t has annually handled since
it's corporate organization in 1885 from
$40. .0OO, 900 to 60.000.000 of commercial
paper. 1t was not borrower upon its
own name or an indorser of the paper
it passed, and therefore its out
standing liabilities are secured by
commercial paper. 1t was customary
for this firm to advance money Oh pa
per ahead of sales, and to carry such
paper in bank as collateral for loans to
the company. During tile past ten
days it has been called upon and met
81, 200. 900 of call loans. Upon capital
of $3.50, 900 the company has accumu-
lated a surplus of 100000, and the
stock of the company has sold private
ly at good premiums, though, outside OF
some fifteen stockholders III the west,
it is practically owned by Messrs. Pot-.
ter, Lowell & Tyrrell. The success OF
the firm induced outside ventures by
Walter Potter, mostly in Texas, in con-
nection with Chicago and London par
ties, and in these fortune is prob
ably locked up. 1t was when this
outside business began that Pres
ident Asam Potter, of the Nav
erick bank, ceased business rela-
tions with the house. Walter Potter de-
clines any assistance. He says if peo-
ple will pay their debts to him he will
pay all of his. but he will not borrow of
his friends to carry his mercantile assO-
ciates. He could have probably had
500. 200 or more if he had not declined
all offers.
CHICAGO. Aug. 2S.-The financial diff
ficulties Of the Boston banking firm of
Potter, Lowell s. Co. affects several we'll
known Chicago business men strongly.
1t specially interests Congressman Alb
ner Taylor, who is one of the promoters
of Texas scheme, the failure to float
the scrip of which was one of the i'm
mediate causes of the suspension. John
T. ChumarSero, of the firm of John V.
FarweIl & Co., returned from Boston at
midnight. He said: IL hope the trouble
will be only temporary"
But now is IH6 IT'LL VI y. V. = dI VIGIL q
Co. interested in this case?''
"Potter. Lowell & Co. hold some of our
commercial paper, that is all. 1t is amply
secured, ana is perfectly good. The firm OF
j. " Farwell & Co. is not affected by their
suspension in the least.
What caused the trouble?''
Largely the failure to float the scrip of
the Brazos river enterprise. 1t was pro-
noted by Lee & Ferguson, of Leayenworth,
Kas, and Abner Taylor indorsed their notes.
Potter, Lowell d Co. bought them. and in or
dinary times could have disposed of them
without any trouble, but in the present strin-
gency buyers began to look very closely, and
the Brazos scheme not being very well known
its paper was difficult to dispose Of
The Brazos river scheme to which
Mr.. Chumarsero referred was one to es-
tablish deep water harbor in Texas on
the Gulf of Mexico.
BosToN, Aug. 29.-AttachmentS ag
gregating 81 OOO, 900 were placed to-day
by the assignee of Potter, Lowell 81 Co.
upon the Shaw estate and David Cum
mings & Co., tanners. This was done
to protect the creditors here. The at
tachment against G. W. Clement is for
S2.OOO,OO0 Suits for larger amounts
against other parties will probably be
announced tomorrow.
Banks Must BE Liberal.
Walter Potter says that no failures of
consequence are likely to follow OH ac-
count of Potter, level & Co.'S assign
ment if the banks will act literally in
helping where money is absolutely
needed by firms that are solvent. The
business amounted to S60.000.000 last
year. Mr.. Potter declines to state the
amount of the liabilities, direct or in
direct, before the assignee makes his
report. The firm of Potter, Lowell & Co.,
made an assignment because they were
interested in stocks and bonds and the
individual partners, Mr.. Potter said,
had nothing to assign beyond the firm
interest. He stated that the amounts
due them would show a large surplus
over the amount they owned. Evil
dences are coming to light that the real
cause of the suspension of Potter.
Lowell & Co. dates back to
the big Shaw failure. A draft
of $4,000 went to protest
Monday, but was subsequently paid.
The firm could easily have met all de-
mands yesterday from offers of assist
ance by friends, but deemed such ac-
ton as useless, as they thought the fail
ure inevitable. The greater part of the
Indebtedness is held by Boston banks,
but all the banks say they are amply Sc
cured by collateral and have good mar
gins.