New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-09-05
A COMMISSION FIRM FAILS.
SAWYER, WALLACE e. co. FORCED TO
MAKE AN ASSIGNMENT.


OF THE LONDON BRANCH THE PROBABLE
CArsE-TyiE LIABILITIES LARGE. BUT
NOT DEFINITELY KNowN-A STATE
MENT BY TIE COMPANY.
SAWYER Wallace & Co., of No 1s Broadway.
one of the largest general commission houses in
this city and one Of the largest in the country
made on assignment yesterday afternoon wI'h
liabilities probably over 81 100000. The cause
OF the firms failure was said scmi-Ofcialiy to be
thc speculations of Lucius Willard Sawyer. son
Of Samuel A. Sawyer, the senior nVmhcr OF ire
firm. WHO has been in charge Of the firms i.oE-
don branch since it was established five years
aes Lucius W. Sawyer's spcculations. 1T IS SAID
extended probably over period of two wears, and
are supposed to be confined to the exchanges ell
this country lie sent heavy drafts to the r!Hin
Office, representing that they were for customers
1t was not possible 10 ascertain Yesterday no"
high the liabilities would run. The affairs OF
tho bouse are in such tangled condition that
IT, will probably take some time to str?iGlten
them ont and to find out how deeply tic firm is
involved But it was said at the company s Offices
that the collapse was complete.
Rumors were in circulation in the Consolidated,
Produce. Cotton and Coffee exchanges early y's-
terday afternoon that the firm was embarrassed.
This caused great excitement, but did not ma
terially affect the morkcts. There was &C.
cline of twelve points at the Cotton Exchange
There was large crowd at the Produce En-
change who had heard tAs reports and
who waited until late in the day
for authentic news. The first rumor
was that the failure was caused by the spccnlatlonS
of Theodore Itzig, Berlin agent for the iirm who
committed suicide on Wednesday. But that was
mot the cause, for Itzg cid not owe his house
5000 1t vas late in the afternoon wien the
report was verified, and it became generally known
that the firm had made an assignment to Marshall
Ayres. of Lombard & Ayrcs. the large oil firm. Of
No. lo Broadway. The following general state
ment was issued by Sawyer. Wallace & Co.. for
rl,e information of the public, their friends and
customers:
1t is with ipexrrcssiblc sorrow that we arc forced
general assignment for the benefit of our credit:
Dur resources have been completely eSauscd Ha ~ n,
Chiefly conducted through London Owing to n tho
sss snS se Sf y our
when We can DO So meeting Of Snr crsd,ios WIN n, 10
over u our assignee Mr. Marshall Ayres. q the cl,y
q New York all our asset: 6?tn Rsr1ncr'np ana ~
d1vdua, wlthonI PeieSu'c Va ''eu"o'''
given at the office. But from an authentic source
o general explanation obtained of young
Sawyers financial schemrg. The firm is cont
posed of Samuel A. Sawyer, David l.. Wallac"
and Thomas Miller. Lucius w. Sawyer is about
ferty years old, was educated abroad. and Is
married. he was described by, an acquaintance
Yesterday Is "pig-healed." lie serms to have
been ambitious to make great fortune, and was
bound to have his own way lie was sent to
Lsndsn to toke charge Of the branch house there
The credit Of the firm was high, and the company
has been rated as worth from Sl,ooo,oVo 70
sl.6oQ, 600. 1t has always had large efpors
trade In srein, and had heavy cotton and cenec
option business, principally for European ac-
counts. while it was one Of the leading CON-
mission houses in leaf tobacco. which 1t soid 10
manufacturers and importers. Ihe firm was
interested in other things also
Lucius W. Sawyer began his financial schemes
about two years ago. lie became involved in large
hog deal in the Produce Exchange here, ~ whic4
other men in this city were concerned CMcagq
men got the best Of the deal. and 1t was revived
about six months ago, with Sawyer IN II a9aln.
1t was reported that hc drew his firm into Dad
place at the time. But apparently he did Tue
mischief entirely on his own account, representing
that the large drafts which he sent to the maln
office were for customers in wheat and hogs. IL
has ALWAYS been the custom Of Sawyer. Wal.ace
& Co since the London branch was created 70
send member of the firm to London once a year
TO make examination of the Office there. AS
early as last April the company suspected that
Lncius W Sawyer was rot conducting the affairs
of his office in satisfactory way, because nc
transmitted SO many heavy drafts Mr.. Sawyer,
senior, who is over seventy years Old, went u
London and nade thorough Investigation OF the
branch concern lie returned three weeks ago
.;c tl.at fhn firm, npI Ip
come 81 badly involved through bis sons specnlac
tions that it would probably have u make an
assignment. The business in options and margins
WAS conducted in the London house, which
gave Lucius opportunity to hspdle a~Great deal
Of money. lie had been speculating i'll hogs and
lard, carrying his options over from one month
to another. 1t was decided when this revelation
was ..ade 70 close up all contracts if possible.
1t was said yesterday that the concern had no out
standing contracts on the Cotton Exchange and
few the Produce Exchange. But il Sas found
necessary make assie eninent Mr.. Ayres, who
is an old friend of the house. was called to the
Office at No. Is Broadway, where the news WAS
given tO him lie consented to be the assignee.
lie afterward told Trbune reporter that he
could not estimate what the liabilities or assets
were. lie mad just returned from Europe and
knew only that The affairs of the company we're
in q badly tangled condition. " But we shall
uake AL examination OF Tue DOCKS us SO0H dS P'o'
sibie,' said he, and give out full statement
! do not think that this failure will cause any
trouble, although it might il it had occurred two
wee, weeks ago; but the business werl Will he ter:
Tidy SURPRISED when it hears Of the failure OF
had an epvinble reputation for fair dealings and
W Of ,symphy for the firm were
There were reports that the liabilities
would run from Sl.5000O0 to S3,0O8, 900
There were some people who attributed Clio
failure Of the house 10 its attempt to crush
out competition by doing its business with Euro
pean spcculatOrs without margin and at a small
commission. These stories credited the firm with
losing $I.OO0.OOO in the pork deal in January.
and it was said that the firms claims for this
loss against European spectators were among
the nominal assets. " was said that the total OK
the nominal assets would be Sl,75O 900. 1t
81, in go