Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-05-14
A BIG FAILURE.
LEVY BROS, & CO., OF NEW YORK
GO TO THE WALL.
Their Liabilities will Probably Amount to
$1,000, oo0-Credits Rushing in At
achments-A Lawyer Talks.

NEW YoRK, May 13.-Levy Bros. & Co,
wholesale clothing manufacturers, Go, OLE
and Ga Broadway, We're closed up by the
sheriff yesterday, who acted under writs of
attachment. aggregating $50, 1924, and
Augustus Ii. Levy. one Of the partners IN
the firm, is pronounced hOpeleSsly insane
by physicians who examined him yeSter-
day, his mind having been unbalanced by
the catastrophe winch has fallen on his
house. The affidavitS upon which the writs
were granted declare that the firm had
within two years past made unlawful con-
version of its funds and the payment, TO
the amount of over 100000, to Sam Levy
Of Frankfort, Germany, now, but formerly
Of this city, brother of Augustus H and
Mrs. Land, that SuCn payments We're made
with the intent 10 defraud the creditors
and deprive them of the payment OF their
Just dues.
The affidavit also set forth that the firm
in u statement made to the National Park
bank in December last showed and claimed
4 surplus of over three hundred thousand
dollars, and that an Investigation Of the
condition OF the firm. made within the last
three days, showed an excess Of liabilities,
over apparent assets, OF over three hundred
and fifty thousand dollars. making an ap-
parent deficit within less than six months
Of over six hundred and fifty thousand dol
lars.
Otto Horwitz, of Horwitz 81 Uirshfeld,
attorneys for the National Park bank,
said: The firm is the same which under
the name of Levy Bros. Il Co. failed in
1888 for S225, 900. only that Samuel Levy
was at that time partner and Moses S.
Levy was salesman in the employ OF the
firm and not an interested partner The
failure in 1888 was precipitated by the fail
IRE of f. Mayer & Co.. with whom they
We're intimately connected. Mayer 4 Co.'S
failure was exceedingly disastrous, their
liabilities being over two huairsd and
fifty thousand dollars. The firm say now
that their trouble is partly due to the fact
they were overloaded with SG00000 of la
bilities Of the old firm, which they assumed
when they resumed business in 1888, but
they took the assets of the old firm and for
years have represented that all the old in
debtedness has been paid off, and that out
of the large business they had since they
had cleared over three hundred and fifty
thousand dollars as 4 surplus, which was
invested in the business.
1T was on the strength of this statement
that my client, the National Park bank,
discounted their paper to the amount of
nearly 100000. OF course the bank had
collaterals, which were represented to be
customers bills; but, upon investigation, [
find they consist largely Of accommodation
papers and to be largely worthless.
The failure will be disastrous one, / am
afraid The liabilities will be at least $3.50
900, and may reach 81 600 900 or more; but
| don't believe the assets will realize over
$500. 900. The fact that they are in the
hands of the sheriff, under attachment pro-
ceedings, will not conduce to the amicable
settlement OF the firms troubles. In fact,
I look for a general scramble Of the rest
Of the creditors to get in first with their
writs OF attachment. ."
Five additional attachments. aggregating
some $50, 900, were filed against the firm
y, rrfsTN tod lNnG Ia
firm would file general assignment for the
benefit of their creditors this morning; but
no such document found its way TO the
county clerks office. Later another garnish-
ment was obtained by H. Bernheiner & Co.
for $500 against the firm.