The evening world., 1891-08-14

Except among a certain class OF business
men with whom he had dealings, Mr.. Backer
was almost entirely unknown, and when the
announcement that he had failed for $4,000
900 was made people began to ask, Who is
Backer2
1t was said in reply by his representatives
that he was one OF the largest dealers in COM
mercial paper in town, and that he handled
every year an average OF s15,ooo,ooo Of the
best paper in the trade
AS 1t has not appeared that Mr.. Baoker suf-
iered any losses from the failure OF business
men for whom he negotiated and sold notes,
which might have forced him to make an as
dgnment, the fact Of his failure under the
circumstances Is one of the most remarkable
features OF the case. --- -.s-
According to the statements made at the
time OF his failure, Backer was crippled by
the condition OF the money market, which, It
was said, made 1t very diflcult to float the
quantity Of commercial paper which he gen.
orally handled, and also to the decline in
value Of certain Southern railroad bonds, Of
which he was large holder.
With regard to the money market, 1t may
be said that rates have been easy for o long
time and so far as the details OF the failure
have come to light It does not appear that Mr..
BacEer had any dificulty in discounting the
paper Of his clients at many OF the city banks.
even without the deposit OF collateral Sc
curity. At the same time Mr.. Backer COM
PEELED his customers to furnish collateral with
their notes, which he handled.
The facts which have developed in connec-
ton with the arrest or Mr.. Backer, which was
hTst announced In yesterdays EVENING
WORLD, on the complaint OF Judge william
D. Harden. OF Savannah, throw new light on
the case and bring out some startling fea-
tures.
UsRD HIS CUSTOMERS COLLATERAL
Among the queries called out by the failure
was one as TO whether Mr.. Backer had not
been practising some Irregularities in his
dealings with his customers, and why large
quantity OF collateral securities pledged to
hlm with the notes which he sold for his eli
ents had mysteriously disappeared.
IL was also said that alteough the paper
had been discounted by Backer, the proceeds
mad never found their way to the makers Of
he notes. His sudden failure had thrown
everything into confusion, and anxious credi
OF their money or their securities.
The suit brought by Judge Harden, how
ever, gives some insight into Backer'i
methods Of doing business, and from the
Statement made in court yesterday by Mr.
Vhtermeyer, the Judges lawyer, 1t woult
sppear that there are numerous other cred
Nors OF the bankrupt note-broker in tho same
BOAT with Judge Harden.
Judge Harden alleges in his afildayit that
Ou March II. 1890, he delivered to Backer at
us onice, 2s5 Broadway, note for $4,000
AZ the same time he delivered to Backel
securities 10 the value OF more than 1000
"nsistlnG OF debenture bonds OF the Contra
Auroad and Banking Company, OF Georgia
,Alued at $1,000, and certificates OF thu
savannah GasllghtCompany, valued ats2 $50
Ihe note was payable on Oct 1, 1890, bu
vas renewed from time to time, the last re
as"al coming due on Aug. 12, two days ago
VI July Judge Harden wrote to Backel
aOout the further renewal OF the note. anC
vas informed In reply that II he would pay
s'OUo on account and leave the same securi
.e' as collateral the note could be renewed
ior ninety days.
Ar hackers failure occurred before this ar.
angement was carried out, and Judge Har.
n came to town at once TO look after his
note and securities
nc found his note at the National Parl
aux aux aud paid It, but none OF the securltie!
Ich he had delivered to Backer were Their
ulateral, nor had any collateral been de
s.I'ed there by Baeker when he got the mott
me Judge made the startling discovery
p"o'er' us he says IN his allldayit, tha
80 had deposited his railroad ana ga
"a u the Merchants National Bank u
S,. MI loan procured by himself for his owl
ana he charges that BacRer did thi
l,s,uuulently and feloniously and with tn
~. 70 deprive him (Judge Harden) OF tn
'A' 70 the ownership in those securities.
A.. LARCENY OR MIsDEMEASoR?
A.. R,-.uOugh the lawyers who represent Judg
nn Intimate that very large sums o
~ nave been misappropriated by BacEe
iar manner, they decline to give q