Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1890-09-05
a BIG NEW YORK CRASH.
Sawyer, Wallace & Co. Fail
s. For $4,000, 900. -.
RUINED BYTHEIR LONDON AGENT.

The Firm Was One of the Largest Com
mission Houses In America-The Pork
Expectations of Young Sawyer In Lon
don Caused tho Firm's Downfall.
NEW YORK, Sept. 5-Sawyer, Wallace &
Co., Of New York, Louisville and London,
the largest general commission merchants
and brokers In their line in this country
and perhaps In the world, have suspended
payment. It is an absolute and irretriev-
able collapse, and the large capital Of the
concern Is completely wiped out. II is inn
possible as yet to ascertain the extent of
the firms liabilities, but they are roughly
estimated by members OF the firm to be
mpward Of s2,0Oo.000
Cause of the Failure.
The failure was caused by prolonged and
reckless speculations and, it is believed,
the dishonesty Of l.. w. Sawyer, who had
charge of the London Office of the concern
and controlled practically all of the Euro
pean option business, which was very ex-
tensive, as Sawyer, Wallace & Co. had 1850
agents, embracing every city in Europe.
Yesterday afternoon, just fifteen minutes
after the closing of the financial and spec
ulative exchanges, sensational and
alarming rumor spread like prairie fire
through the Wall street section. 1t was
that the Berlin agent of Sawyer. Wallace
g. Co was defaulter to the extent of half
q million dollars aud had committed sui
eide upon the discovery Of his heavy short
age, which had caused the house to an
nounce its suspension.
1t Seemed Improbable.
Sawyer, Wallace 81 Co was such a big
concern that the appalling possibility Of
its failure was received with uneasy in
credulity. Curiously enough, the only
portion Of the alarming story which was
at first generally believed was that relating
TO the Berlin agents shortage. That such
q house should go under seemed improba-
BILE And yet the improbable half OF the
rumor proved to be the truth aud the
agents reputed heavy defalcation was I'M
true
The Firms Notice.
The following announcement was sent to
the various exchanges:
IL IS with inexpressble sorrow that we are
forced 20 closs our thirty.seven years business
Nh@ioEA " q Et7tAht hHaSHiutHt LOT the dement, OF
our creditors. Our resources have been com.
pletely exhausted by losses in our foreign option
business (wheat aud provisions chiefly conduct
ed through London. Owing 20 the number and
variety of these foreign accounts we cannot state
the amount Of our liabilities or assets, but when
We can do so a meeting of our creditors will DO
called, II they so desire.
Meantime we have turned over to our assignee.
MT. Marshall Ayres, Of the city OF New York. ali
our assets, both partnership and individual with.
out preference Of creditors.
SAWYER, WALLACE & Co
How the Firm Was Received.
Theodore Itzig, the Berlin agent whose
suicide was announced, had been speculate
ing on the wrong side Of the market and
had failed His shortage was very small.
Lucius Willard Sawyer, the son Of Samuel
A. Sawyer, the senior member OF the firm,
has been manager Of the London branch
for five years. Mr.. Sawyer is married
man, about 40 years old He INDUCED in
unauthorized speculation in pork and COM
pletely ruined the firm before his opera
tions were discovered. The present firm il
composed Of Samuel A. Sawyer, David l..
Wallace and Thomas Miller. II has been
IN the commission business in this city for
thirty-seFen years, but it was not until
Sept. 4 1874, that Mr. Miller was taken
into the firm He had been the cashier Of
the old firm, and has since then has had
charge Of the finances.
Some time ago Mr.. Miller made the
statement that the firm OF Sawyer, Wallace
q Co. hUd assets amounting 10 81 800 GOO
with Liabilities merely nominal and did
commission business only. So firmly we're
its credit and character established that
large amounts of its paper were sold at
the lowest rates. Sawyer, Wallace & Co
exported three-fourths of all the wheat
that was sent from here to Germany, and
they were also big dealers in cotton, lard,
and pork. Coffee and petroleum were also
handled by them. b. p, Hutchinson
cold Hutch'D was their Chicago agent.