Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-08-04
HE OWES MILLIONS.
An Assignment in Which S4,-
900, 900 Are Involved.
HEAVY FAILURE ATNEw YORK CITY

Abraham Backer Turns Over His Prop
erty to Make His Debts Good, and Says
- 1t viii Do 1.-THE Result of Dealing
Too Freely in Commercial Paper
Which He Could Not Float, Owing to
the Condition of the Money Market.
NEW YORK, Aug Abraham Backer
dealer in commercial paper at 2s5 Broad
way, made an assignment yesterday with
out preference, to Benjamin F. Einstein,
of Townsend, Dyett & Einstein, lawyers
at 247 Broadway His liabilities, direct
and contingent, are reported to be 81, 600, :
coo. He has large assets. Mr.. Backer
was heavy dealer in commercial paper
and also the capitalist of the firm of A
Backer & Co.. dry goods commission mer-
chants at 2S5 Broadway He also manu-
featured goods at Glastonbury where he
has fine mill. These goods were princi-
pally for the southern trade.
His Career in Business.
Mr.. Backer had been a merchant in the
south for many years, and came to New
York about twenty-seven years ago. His
original business in the south was pria-
cipally in groceries and liquors Then he
got into the cotton business, later into
cotton goods and then into commercial
paper. For some years he manufactured
cotton goods III Philadelphia. but he sold
out there about five years ago and went 10
Glastonbury, where he purchased a mill
cheap and improved it. He sold the goods
manufactured there through his own firm
: of A. Backer & Co. His assignment, it is
said. does not affect this firm, althoug
h was the principal partner and capt.
talist, his son n. c. Backer being the
SEQ"
Handled Lots of Paper.
Mr.. Backer's principal business was
dealing in commercial paper. His large
connections in the south and southwest
enabled him TO handle great deal of pa
per, either as broker or purchaser. Some
of this paper he Endorsed and had dis
counted in his banks, and on this paper he
has a contingent liability. Some paper is
sold outright. He drifted, iizA said, grad
ually into this branch of bu-seess by buy
ing at first for personal inves;m ant and
then 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. eco. 900 annually.
Cause of His Difficulties.
Mr.. Backer was very popular in finan-
cial and mercantile circles, had the conf
dence of banks and bankers in this city
and elsewhere, and was a director in a
city bank and in several southern banks.
He had a number of bank accounts
where he got his paper discounted. Mr..
Backer's assignment, it is said, is princi-
pally due to the condition of the money
market, which made ii very difficult for
him TO float the quantity of commercial
paper which be generally handled, and
also the decline in southern railroad
bonds. in which he was large holder.
Not Quite Shrewd Enough.
His friends cannot understand how he
got in so heavily, for he was regarded as a
very shrewd and careful business man.
A friend said yesterday that if he had not
| gone into the Macon Construction company
he would have been ali right, as his regular
! business was profitable and he was sup
| posed to be worth over $500, 600. Mr.. Backe I
was not at his office yesterday The clerks
said that he did not come down TO business
on account of the assignment, and that il
| was complete surprise to them. He is
| said to have stated that his assets were
| ample 10 pay all his debts.