The evening world., 1891-08-14

ABRAHAM BACEER.
Except among certain class OF business
men with whom he had dealings, Mr.. Backer
was almost entirely unknown, and when the
announcement thai he had failed for $4,000
900 was made people began TO ask, Who IS
Backer?
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 sl5,OOO,OOO Of the
best paper in the trade
As It has not appeared that Mr.. Backer suf-
fered any losses from the failure Of business
men for whom he negotiated and sold notes,
which might have forced him to make an as
signment, the fact Of his failure under the
circumstances is one OF the most remarkable
features OF the case.
According TO the statements made at the
time OF his failure, Backer was crippled by
the condition OF the money market, which, 1t
was said. made II very dinicult TO ioat 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 N lney market, It may
BE- said that rates have been easy for a long
time, and so far as the details OF the failure
have come to light It does not appear that Mr.
Backer had any difficulty In discounting the
paper OF his clients at many OF the city banks.
even without the deposit OF collateral Sc
cuFity. AT the same time Mr.. Backer COM
pelled his customers TO furnish collateral with
their notes, which he handled.
The facts which have developed in connec-
tion with the arrest OF Mr.. BacEer, which was
frst 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-
lures
rsED 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 a large
quantity OF collateral securities pledged to
him with the notes which he sold for his cli-
ents had mysteriously disappeared.
II was also said that Although the paper
had been discounted by Backer, the proceeds
had never found their way to the makers Of
the notes. His sudden failure had thrown
everything into confusion, and anxious credi-
tors were unable to discover what had become
Of their money or their securities.
The suit brought by Judge Harden. how
ever, gives some insight into Backer's
methods Of doing business. and nom the
statement made In court yesterday by Mr..
Untermeyer, the Judges lawyer, IL would
appear that there are numerous other cred
itOrs OF the bankrupt note-broker in the same
boat with Judge Harden.
Judge Harden alleges In his afidavit that
on March II. 1890, he delivered TO Backer at
his of1ice, 2S5 Broadway, a note for elO, 900.
AT the same time he delivered 10 Backer
securities 10 the value OF more than sic, 900,
consisting OF debcnture bonds OF the Central
Railroad and Banking Company, OF Georgia,
valued at s0,7OO, and certificates OF the
savannah GAsllght Company, valued ats2 ESQ.
The note was payable on oct. l, 1890, but
was renewed from time 10 time, the last re-
newal coming due on Aug. IL, two days ago.
on July s Judge Harden wrote TO Backer
about the further renewal Of the note. and
was informed in reply that II he would pay
$1,000 on account and leave the same securi-
ties as collateral, the note could be renewed
, for ninety days
Nr. BSckers failure occurred before this AZ
I rangement was carried out, and Judge HAr-
den came TO town AZ once To look after his
note aud securities
{ lie found his note At the National Park
BanG and paid It, but none OF the securities
/ which he had delivered 20 Backer were there
as collateral, nor had any collateral been de-
/ posted there by Backer when he got the note
discounted
7 The Judge made the startling discovery,
however, as he says IN his afdaytt, that
| BaCker had deposited his raiIUAd and gas
stock IN the Merchants National Bank u
/ secure a loan proCured Dy bimseu for his own
USE, and he charges that Backer did this
/ fraudulently and feloniously and with the
intent 10 deprive him Judge Hardenl Of the
right TO the ownership In th1se securities
/ LAEcENV OR TsDENEANoEG
I Although the lawyers who represent Judge
Harden intimate that yery large sums ID
money have been misAppropriated BY BaeEeT
In a similar manner they decline 20 give al
present the names q the creditors who make
these charges
The amount thus Involved Is said 70 be sew.
eTal hundred thousand dollars, for IN dis
counting notes for private iadividuAls BAeEsT
usually demanded security as collateral fol
the loans, with a margin ranging nom 10 u
20 per cent. Of the face value of the note
on the strength OF his financial standing
ne would get these nJtss rediscoahtsd A. thl
banks without putting up collateral. and. II
is charged, would Use the sssuntiss 10 pro
cure looms for his own use.
The discovery Of the methods pursued b
BaekeF certainly places his case In very %
culiaT light said M. UntsTmeyer, for d