New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-05
NOTtUP WITH THE TIMES.
RUSSELL e. CO.'S OLD BUSINESS METHODS
LITTLE ADDITIONAL INFORMATION REGARDING
THEIR SUSPENSION.

LITTLE ADDITIONAL INFORMATION REGARDING
THEIR SUSPENSION
Little additional information could be CLEANED yes
.rdav as 10 tho suspension In business Of the CHINA
trading concern OF Russell & Go. This firm was proc
ohlv one Of the last Of the old-time China trading
houses and the failure generally Is SAID to De aue "
adherence 10 the old-time methods OF DOING business
rather than OF those Of the present day ms hr"
o,lored the old custom In the East OF employing large
numbers of servants and Of entertaining IN royal nS
r.r ALL customers who CHANGED to present themselves
a. any ~ the Chinese houses This alone was heavy
hnren OF expense 10 the company. othcr hTios en-
Gagged in that trade ceased long ago to follow ths ou
custom Of giving entertainment In TINS manner =" 'S
customers but Russell d Co. adhered 10 H. h''o'no'
reason given for the failure Is that the Ola parer
bo have made fortunes In the China trade withdrew
from time 10 time and as they went out OF business
o With them their capital This gradually resulted
in denIctinr the firms financial condition without dc
creasnc the expenses. The business was kened 10 an
immense she'll which when once prcked fcu 10 pieces
Al the New-York Office, No. 90 WalI-st., no ad-
ditlopal information regarding the suspension ooulo DC
obtained yesterday. John NJ. Forbes ana r. d. hush'
two Of the partners, still in Boston, where they
, heor the news leaked out but IL is expected thai
,bev will return to this city within day or two The
noston orNce Is at No. a. Centrast. Henry Hannah
the manager Of the NewYor branch, said that he did
NOT know why the order TO suspend had been given
The New-York Office simply stopped work, as dld 'le
London and Boston branches, on cable oiVefs lroh'
China. Mr. Hannah said that he would not 10 sur
prsed TO receive orders TO reopen again Immediately
II there has been failure" he added, at VIII not
he until the mail advlces from China are received that
the real causes of the failure will be known here 1hs
will be In about month";
The original firm was established in 1924 and was
the successor of Perkins & Co. William Perkins was
the original head OF the firm Then Captain kusseli
,4a4r
business and the present name of the firm came nom
him For many years the head Of the firm was Johh
NJ Forbes OF Boston, Mr.. Forbes now Is Chairman
of the Chicago Burlington and Quincy Board Anoher
man who has been at the head Of the nrm was h'
ward Cunningham, who was shot last year IN Nn'on
Mass Henry s. Grew of Boston, has also been al the
head of the firm at different times. Other Massachu-
setts men who have been associated with the firm are
D. O Clark j, Murray Forbes and Captain H. b.
Forbes all CT Milton: Z. D. Barbour and W. D. Fls' OF
Boston; II. H. Warden, Of DuAbury, and Warren de-
lano of Fairlaven. w. II. Forbes now Is IN Hong
Kong.
It also was said yesterday that the starting OF the
National Bank by the company may have been one
reason for the suspension. short time ago the nrn
oroan,znd banking institution under this name, which
was intended TO take all the business OF the seven
banks with which 1t had been doing business before
that tme 1t was to have capital Of about $4,000
OOO and a number Of men prominent In the chinese
trade wero named directors. The bank was iOrced
into a fight with the seven banks the business OF
which II attempted TO absorb, and the result was not
a satisfactory one. The firm was said TO be large
owner of China ships engaged in the coasng trade, but
this was reported to be error the outcome OF tho
action OF the Chinese Government during tho Fenoh
war in putting tho ships employed In this trade In me
hands Of Russell d Co for protection. THIS hrm I'M
mediately raised the American flag over tem ana OF
course they not molcs;cd. The same thing was
done before this by China in another war.
II is supposed that the failure will cause many
losses and $500 900 is the extreme amount placed on
the probable losses. All Of the American banks and
firms to whom money IS due are secured by bllls Oh
lading. >,
Boston. June 4 SpecaD.-The failure Of Russell
Co.. Of China. is of Interest to Boston, mostly from
the firms past history. None Of the present partners
are residents Of this city. The Boston agent OF the
firm has heard nothing OF the suspension beyond what
he has seen in the newspapers and the announcement
OF il was a surprise 10 him. II. D. Forbes has had
no active connection with the house for the last seven
years lie lives abroad Mr.. Huntington died In
April Mr.. Pomeroy lives in London. Mr.. Wheeler
does not live in Boston. John VI. Forbes, jr.. and
G. Vincent smith live In New York. The Boston
house OF j. ". Forbes & Co. has connection with
Russell & CO.. either a firm or individually. Re-
Gently tho firm has been interested IN getting up
oint stock bank in the Fast which might have proved
q profitable thing. Captain Robert Bennett Forbes
was at tho head OF the house when he only thirty
six years old, In 1a4G.