The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-06-04
AN Old CHICAGO FIRM NAIL
Hermann shaffner & Go. Are
Pushed to the Wall.
MIR. SHAFFNER DISAPPEARS.
Rumor Has 1t That He Has Committed
Suicide.
Another Theory Is That He Has Beer
Dispostng of Securities Without Ac-
counting for Them-It Is Said
the Bank Will Pay in Full

CHICAGO, June 3.-Hermann Shaffner
& Co., private bankers, have made an
assignment. The firm is the largest
private concern in Chicago or the north
west, dealing exclusively in commercial
paper. The firm is also about the oldest
of its kind in Chicago.
No statement of the banks affairs was
filed with the application for a receiver.
The assignment was made to the Ameri-
can Trust and Savings bank. The cashier
OF that institution on visiting the sus-
pended institutions quarters this morn
ing, found large demonstrative crowd
around the closed doors.
To add to the excitement it was Tumored
that Schaffner had committed suicide.
An investigation developed the fact that
the assignment was the direct result of
the disappearance of Hermann Schaffner,
the senior member OF the firm. 1T is said
the bank has been in straits for some
days, and that its difficulties preyed very
heavily on Schaffner's mind. He left the
bank yesterday afternoon and has not
been seen since, though diligent search
has been made for him. His friends say
| that mental ALTERATION is not unknown
in his family and they fear his distress
unbalanced his mind and that some mis-
] hap has befallen him. The police have
been notified to keep sharp lookout for
him. His partner, A. G. Becker, was so
overcome by the train of ills that ne was
taken sick and is now confined to his bed.
| A representative of the assignee says
| the cause of the failure was too much
commercial paper. In this line the firm
was the largest In the country, handling
$35, 200, 900 worth last year. There has
been little market for it since the tight
money came. 1t will take some time to
make up statement of assets and liabil-
tiles.
1t is said the firm was caught by several
of the recent failures for sums ranging
from 500, 900 down. 1t is further said
that the bank when in need OF money
pledged commercial notes as collateral for
| advances from other banks. There is
also a story that Schaffner was caught in
the recent great shrink in values on the
| local stock exchange.
The attorney for the bank has made a
statement, in which says it is expected
the suspension will be only temporary.
1t was made only because Schaffner's
disappearance was likely to cause distrust.
The firm dealt in mortgages which 1t sold
on its merits without endorsement and
therefore is not liable on it. No bank in
the country will lose anything and he
feels sure the firm will pay in full.
One banker talking of the failure said
that, leaving out of the account the theory
OF insanity, the only way in which he
could account for Shaffner's disappear
ance would be that.he has been disposing
of securities without accounting for them
1t is reported that the liabilities will not
exceed $500, 900, with assets more than
that. The failure caused intense excite
ment on 'change and heavy transactions
with rapid decline. Many small holders
of local street railway stocks were frozen
out and are in serious difficulty as to mar.
gins.