The evening world., 1891-08-14
ABRAHAM BACKRR,


Except among 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
600 vas made people began to nsk, who is
LlCGerY
/. was said in reply by his representatives
that he was one OF the largest dealers in COM
r.,rci-l paper In town, and that he handled
e'siy year au average OF S15,000,O0o Of the
b paper in the trade.
IS II has not appeared that Mr.. Backer suf-
f.. i any losses from the failure OF business
L'H f,r whom he negotiated and sold notes,
' lich might have forced him to make an as
8! p!nelt, the fact OF his failure under the
q oiustauces is one OF the most remarkable
I ",u"cs OF the case.
acc0rding to the statements made at the
time Of his failure, Backer was crippled by
IN" condition or the money market, which, 1t
was said, made It very difficult TO .noat 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.
Win regard to the money market, 1t may
be said that rates have been easy for q long
'ine, and so far as the details OF the failure
have come to light 1t 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 So
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-
tion with the arrest or Mr.. Backer, which was
hrst announced In yesterdays EvRNIR6
WORLD, on the complaint OF Judge william
d. Harden, OF savannah, throw new light on
the case and bring out some startling fea-I
lures.
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 cli-
eats had mysteriously disappeared.
was also said that alteough 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
' bfSS bomo inblBuJ lulO bdChOt .
methods OF doing business, and from the
statement made in court yesterday by Mr..
Ultermeyer, the Judges lawyer, It would
appear that there are numerous other cred
Nors OF the bankrupt nOte-broker In the same
OOaC with Judge Harden.
Judge Harden alleges In his afIidayit that
On March II. 1890, he delivered TO Backer at
MS ONCE, 2S5 Broadway, note for $4,000.
Al The same time he delivered 10 BAcker
securities TO the value OF more than S10,O 900,
consisting OF debenture bonds OF the Central
Aallroad and Banking Company, OF Georgia,
valued al $1,000, aud certificates OF the
savannah GaslightCompany,ya valued ats2 ESQ.
Tue note was payable on Oct. !, 1890, but
WAS renewed from time TO time, the last re-
heVSl coming due on Aug. 12, two days ago.
on July - Judge Harden wrote 70 Backer
about the further renewal OF the note, and
"S Ss informed In reply that II he would pay
-,OoO on account and leave the same seouri-
lOr ninety days
Mr.. Backer's failure occurred before this ar
asnngement asng was carried out, and Judge Har-
noIlne Valne 10 town at once 70 look after his
hIte and securities.
ne found his note at the National Park
which he had delivered 20 Backer were there
~ acolateral, nor had any collateral been de-
diScoSt,dl diISd There by Backer when he got the note
The Judge made the startling discovery,
Rs",eVer, as he says In his afiidavit, that
stchei had deposited his railroad and Ras
ssSS ovh Ia the Merchants National Bank TO
ne Sure loan procured by himself Tor his own
frn,,,aalnu ana ne charges that Backer did this
ibtsnutulently and feloniously and with tho
LENT 70 deprive him Judge Harden) OF the
" the ownership In those securities.