New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-21
A CRASH IN PHILADELPHIA.
SUSPENSION OF THE OLD-ESTABLISIIED
HOUSE OF BARKER BROS. & co.

Bf SUSTAINING TWO CORPORATIoNS-
THE MARKET NOT SERIOUSLY AE-
FECTED-NoTABLE HISTORY
OF THE FIRM
rBY TELEGRAPH TO TIE rkmuxxp -
Philadelphia Nov. 20.-Tn spite Of the rumcf
which gained some ground yesterday in Third-st.,
that large house. presumably Barker Brothers,
was in serious difficulties. the announcement on
the Stock Exchange this morning that the firm had
suspended created an intense sensation. Among
| commercial and financial men the surprise that
an assignment had not been averted was ex-
treme. The assignment made to Edward
Mellor, son-in-law of Wharton Barker. The
| house, which is one Of the oldest IN the city,
| stood among the richest and most respectable.
and for a short time serious consequences were
feared. Barker Bros, however, were known to do
only banking business, and the explanation Of
the disaster afforded by the recent raid upon
Reading and the prevailing stringency in money
was too obvious not to relieve the stock market,
which suffered for only a time. Prices were
affected to some extent Lebign Navigation under
going sharp decline the belief that the en-
barrassed firm was interested in the stock: and
Reading also declining, though reacting before
the close.
Anxiety was at once felt, however, for the
safety of the Investment Company Of Philadel-
phia and the Finance Company Of Pennsylvania.
the two extensive institutions founded by Whar-
ton Barker, the junior member OF the irm
The former of these, chartered in 1871, doubled
its capital of 100000 eighteen months ago, and
has recently taken under its wing the new In
vestment Trust Company, with a capital Of ST.,
000, 900. The Finance Company generally un-
derstood to have grown out of the Investment
Company, began business with capital OF $5, ,00O,-
900. Among the capitalists behind these COM
panies are some of the weathiest men in the city,
Henry c. Gibson and Charlemagne Tower, jr., be-
ing conspicuous among the directors of the Finance
Company, while Mr. Gibson is vice-president Of
the Investment Company. On the Finance Com
pany'S board also George Deb. keim, George
w. Blabon, I. Morris Perot and Philip c. Gar
| rett; and I. Wistar Brown, Morton McAlichael
and William Wood among the Investment
| Company's directors. Wharton Barker di-
| rector both boards and president of the FL
| nance Company. The presidency Of the Invest
| ment Company had recently devolved, after
the death of William Brockie, upon Henry NJ.
| lIOyt, jr., the son of Ex-Governor 1Ioyt
| One immediate cause Of the failure was soon
said to be the losses incurred by Barker Brothers
| in buying up stock in both companies to support
| them the declining market Both companies
| have done an extensive business in placing large
| issues of railroad bonds OF the two, only the
finance company is supposed to be in danger.
| The investment company had in December last an
undivided surplus of S452, 900, and has been pay
| ing per cent dividends. The finance company
| is much more directly connected with the Barkers
Wharton Barker holding 100000 Of its capital
| stock. This has recently sold down from par to
! 10, and OH rhe news of the failUre to-day it
| dropped to 60. The liabilities of the company
are So, ,5OO,O ,O0O and its surplus is only about
! $l50,0OO.
| The meeting of the Board to-day was awaited
with anxiety as it was felt that further failures
| could not be averted il the company went under.
| Prompt measures had already been taken to avert
| q run on the company. At the meetingp 1larton
| Barker's resignation president was accepted,
and the vice-presdent, Charlemagne Tower was
| elected his successor. committee of three
| directors was selected to act advisers to the
| president for the present. syndicate, consist
| ing of Drexel d Co., Brown Brothers & Co., the
| Provident Life and Trust Company, and the Penn
| sylvana Company for the Insurance OF Lives and
| the Granting of Annuities, has been formed for
the purpose of advancing to the Finance Company
| any amount of money that may be necessary to
meet its outstanding liabilities.
The first feeling to-day was one Of great sur
prise that the Barkers had not availed themselves
| coming if they had called for it, Mr.. Drexel is
| reported as saying that he deeply regretted the
| failure and would have been glad TO- have helped
| the Barkers out. Other large houses expressed
| themselves similarly. If the assistance given to
| shc filtmce company proves sufficient theN
seems no reason at present to fear anything worse
| than the inevitable shaking Of confidence
| The liabilities of the Barkers themselves are
placed tonight at S5,OOOOOo. The firm has
| gone under as the result of the failure OF en-
tensive railroad enterprises. the decline in value
Of their marketable securities, and the losses
sustained in supporting the stock OF the Two
| finance companies. Among the corporations which
| Barker Brothers a Co. were particularly identiied
| with were the Ohio and Northwestern Railroad
| Company, Oregon Pacific Railroad Company, San
| Antonio and Aransas Pass Railroad Company, and
Charleston Cincinnati and Chicago Railroad Com
| many. Besides their interest in the Philadelphia
| investment Company, the Finance Company OF
| Philadelphia, and che Philadelphia Investment
Trust Company, they held 2,O55 shares of the.
| Lehigh Navigation Company. which has declined
| over $50 a share within the last few days; Rich
| mond Terminal and Pennsylvania stock, and a
lot of Baltimore and Ohio Car Trust certificates.
| The firm also had q controlling interest in the
| Wharton Switch Company, which has an extensive
plant at Twenty -second-st. and Washington-ave.
One OF the most unfortunate investments was
that in the Charleston, Cincinnati and Chicago
Railroad The firm is heavily interested In 1t.
Wharton Barker being one of the directors. The
road is Familiarity known on the Street as the
Three C.s" From the start 1t has proved
heavy load to carry. 1t Is built through oouth
and North Carolina, and from Tennessee to Ken
lucky where it Is now in process of construction.
but there is q break from North Carolina to Ten
nessee The Tennessee mines, from which much
was expected, have not answered expectations.
Not long ago the Barkers supposed they had Sc
cured the cooperation of a German syndicate
to assist in building the road but when negotia-
tions were almost completed the Germans backed
out, and the Barlsers were left with the burden
entirely on their hands.
Great sympathy is expressed on all sides for the
firm, whose venerable head, Abraham Barker, last
year celebrated the fttieth anniversary OF his