New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-08-04
PRICE THREE CENTS.
FAILED FOR FOUR MILLIONS.
ABRAHAM BACKER MAKES AN ASSIGN.
MENT.
LARGE DEALER IN COMMERCIAL PAPER AND
IN DRY GOODS PUSHED TO THE WALL
BY TIGHT MONEY MARKET.


BY TIGHT MONEY MARKET.
Abranam Backer, dealer in commercial paper %
| No 2s5 Broadway, made an assignment yesterday,
without preference. to Benjamin f Einstein. Of
| Townsendg Dyett & Ensten, lawyers at No. 241
| Broadway Mr.. Backer heavy dealer 10
commercial paper, and also the capitalist of the
| firm Of A. Backer a. Co.. drygoods commission
| merchants at No 2S5 Broadway. He also manu-.
featured goods at Glastonbury, Conn.,, where he
| has fine mill These goods were principally for
| the Southern trade, Mr.. Backer being merchant
in the South for many years, coming to New-fork
about twenty seven years ago.. His original
business in the South principally in groceries
| and liquors. Then he got into the cotton bus-
| ness next into cotton goods and then into CON-
! mercal paper.
For some years Mr.. Backer also manufactured
cotton goods in Philadelphia, but sold out there
| about five years ago and went TO Glastonbury,
where he purchased mill cheap and improved
it, making 1t large and excellent mill. He sold
| the goods which he manufactured there through
his own firm of A. Backer & Co. His assignment,
| It is said, does not affect this firm, although he
was the principal partner and capitalist, his
| son. n c. Bacler, being the 60" Mr.. Backers
principal business was dealing in commercial
paper. His large connections in the South and
Southwest enabled him to handle great deal
of it. either as a broker or purchaser. Some Of
this paper lie indorsed and had discounted, and
some of it he sold outright. He drifted 1t is
said. gradually into this branch of business by
buying at first for personal investment and then
extended it by placing paper for merchants With
whom he had dealings. He was said to obtain
some of the best paper made, and he handled
about 81 100000 annually.
Mr.. Bacler popular in financial and mer-
onfila nir los bo1 fho
bankers in this city and elsewhere, was director
in the City Bank, and in several Southern banks
He had a number of bank accounts, where he
got his paper discounted.
Mr. Baclers assignment, it is said. is prin-
cipally due to the condition Of the money Market
which made it difficult for him to float the guam
tity of commercial paper which he generally
handled, and also to the decline in certain
Southern railroad bonds of which he was large
holder His trouble, it is said, in. relation to
Southern railroad bonds the result or his
connection with the Macon Construction Company
Of Macon, Ga. This company was organized
about four years ago, Mr.. Backer and another
New-Yorlx merchant being among the directors.
The company had claimed capital Of S5O0.OOO
1t had the contract to build the Georgia Southern
and Florida Railroad.
The Macon Construction Company got into
trouble last March, and W. b. Sparks, the pres
ident was appointed temporary receiver. on the
application of McTighe & Co.. railroad contrac-
tors Mr.. Baclier, it is said, lent the Macon Con-
struction Company large amount OF money,
which he has been unable 10 recover. His friends
cannot understand how ne got into it so heavily,
as he was regarded a shrewd and careful bus-
ness man. friend said yesterday that II he had
not gone into that company he would have been
all right, as his regular business was profitable
and he was supposed TO be worth over 100000
Mr. Bacler could not be found at his office
Yesterday The clerks said he had not come
down to business on account of the assignment,
and that it was complete surprise to them.
He lives at No 331 West Fifty-cighth-st. His
liabilities are said to Ike about S4,000,000. OF
which S25OO,O0 are direct and 81 100000
contingent The latter, it is said, are all right
and he does not expect to lose anything thereby.
The contingent liabilities are mainly Endorsements
on commercial paper discounted by the banks.
The liabilities principally TO banks in this
city and elsewhere, and there is also some to
individuals
A friend of Mr.. Backer said yesterday that he
understood the liabilities were about 100000,
but that Mr. Backer would not be called upon
TO pay the entire amount, as over one-thlrd are
notes of other people which Mr.. Backer indorsed,
but which will he taken care Of by the makers.
These are cOnbluere0 BOOu, anu MI uocn
not anticipate any loss on that account. His
assets, if they are properly taken care OF and
turn out as expected. will more than cover his
liabilities, and lie is hopeful that all the creditors
will eventually he paid in full The books are
being written up with view of arriving at the
actual condition of atfalrs The assets include
about 81 800. 900 Of the bonds Of the Georgia
Southern and Florida Railroad and the Macon
and Birmingham Railroad; about S750,OOO Ala
bama State bonds, and large amount OF other
securities: he also owns valuable mill ana
plant at Glastonbury, Conn, and also real estate
in New-York City worth from Sl5O,OOo 10
100000.
The trouble was entirely due to tight money.
this friend sad and losses in connection with the
Macon Construction Company and the decline III
the securities of the Southern abroad when he
invested in lie was confident that Mr.. BackeI
would make every effort to pay up every dollar
he owed and if the money market becomes little
easier there was 10 doubt he said, that II hackers
securities realized anything near the amount they
ought to there would not he any loss TO creditors
It was thought best to stop now while there was
q chance to save the creditors, rather than go on
and get involved deeper. He could not say now
much money Mr. Backer had lent the Macon Con-
struction Company, but he understood II was
very large amount
Bradstreet's reports state that Mr. Backer came
here from Savannah, Ga. in S6i and was at fiist
in the firm of Backer * Cohen wholesale dealers
in groceries and Liquors at No. 80 Worth-str ano
afterward in the cotton commission 1 ossncss'
of cotton goods in Philadelphia who
failed in 1873. Mr. Backcr bought up the mill
property and plant and operated il under the name
of The Arxwrght Mills by the firm Of \. Backer
& Co. the Co" being Leopold Waitzfelder. That
was dissolved June l, 1856; Mr.
pu urchasing the interest of Mr.. Backer
in the Arkwright Mills property. Mr. Backer at
that time took his son into partnership IN the firm
of A Backer & Co., commission drygoods business
Abont ten years ago Mr. Bacher, SRI bought the
mill at Glastonbury wheTe he Individually % manu-,
time n mariner there but withdrew in July, $50.
In November. 1889, Mr. Backcr said he would not
ell out for less than 100000 lie continued at
10 30 Worth-st. until February last when he
moved m No 2s5 Broadway. The real estate
records show that in January last he took title TO
property in One-hundred-and- -twen'y-'iist-St near
,iorhattan-evr the consideration mentioned being
800 600 and two weeks aferward sold il 10
ibraham Schneider, the consideration being Sll5,,
900.
OTHER BUSINESS FIRMS EMBARRASSED
New.Haven Aug. 3 Cspecial-Attachment amount