The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-27
His Liabilities Placed at 100000
and Assets About the Same Amount.
Statement in Which Mr. Foster Says Neglect
of Business for Politics and an 0yerzealous
Desire TO Build Up Fostoria Ruined Him.
CHARLES FOSTER ASSIGNS.
The Ex-Secretary of the Treasury and II
NuInerona Camnaniaa i'm Tranhle.

CHARLES FOSTER ASSIGNS.
The Ex-Secretary of the Treasury and His
Numerous Companies in Trouble.
FoSToRIA, o., May 26.-The business
world was startled this morning by the
news that ex-Secretary of tine Treasury,
Charles w. Foster. had failed, and that he
bad turned his heavy financial interests. in
on embarrassed condition, over to an as
signee.
The assignee is j. b. Gormlee, q promi-
nent banker of Bucyrus and q warm friend
of Mr.. Fostor. The liabilities are given
out by Mr.. Foster as being S6C0. 900. and the
assets as about the same. He made the as
signmeDt during the night. and the papers
were filed at Tiffin by Mr.. Scott. his attor-
ney.
At an early hour this morning the bank
of Foster & Co. was closed on an attach.
ment for SO. 200 In favor of the Isaac Harter
Milling Company. and at the Same time the
Wholesale grocery house of Davis & Foster
was closed by an attachment for 81. 200 In
favor of o. T. Brown. The presence of the
sheriff was the first inklinR many people
had that there was something wrong. and
it soon leaked out that an assignment bad
been made. The news spread RAPIDLY. and
soon the streets were filled with people
eager to learn the extent of the failure.
The assignment of Secretary Foster was
the signal for the assignment Of number
OF concerns in which he was interested
The brass and iron works was one of the
companies to assign. Besides Mr.. Foster.
Mr. Portz was one of the owners of this
concern. The liabilities and assets of this
company are included with the personal
statement of the Secretary. The Croker.
MaIbourg and calcined window glass COM
panies. three concerns that have been
backed by Mr.. Foster. also failed. The
Fostoria Light ana Power Company is also
involved.
The loss to business men who were de-
positors in Foster e. Co.'s bank is one Of
the depIorabie features of the crash, but it
Is confidently believed that none of them
will suffer to an extent that will cause
them to assign. A run was made on the
Mechanics Savings Bank this morning, as
soon it's doors were opened, but with
$4,000 in currency piled upon the cashiers
desk the demands of all frightened depos-
itors were promptly met and mono turned
away.
FOSTORIA HIT HARD.
The loss to Fostoria is q great one. and
one that will require considerable time to
recover from; but. great as 1t is, the regret
on this account in no way lessons the re-
gret and sympathy expressed for the ex-
Secretary. 1t is conceded that his gem
erosity and public spirit have been the in
direct causes of his financial downfall. as
he was ever ready to lend helping hand.
The assignment of Davis & Foster, the
wholesale grocers, will probably be the
direct cause of the failure of o number of
grocery concerns throughout the country.
1t is said that the firm has Sl25. 900 unpaid
accounts and notes due it.
The deposits of the bank at the time of
Its last statement were about Sl7a,OOO, but
it is impossible to ascertain what they
the company, Mr. j. L. Wilkinson, IS
reticent. and prefers TO have the
assignee make n public statement. Mr..
Wilkinson is also treasurer of the Fostoria
had $4,000 on hand. The failure Is Que to
tue fact that Mr.. Foster has been very
heavy indorser for the three assigned win
dOw-glass houses and the brass and iron
works his Endorsements for these compa-
MES aggregating over $4,000. The strin-
gencv of the money market caused banks
to request payment of the notes, which
precipitated the failure. As the bank also
indorsed much of this paper, 1t Is not
thought that the bank can pay depositors
in full. The bank had q large line of de-
posits. but the amount cannot be ascer-
tanned tonight
The Wholesale grocery of Davis & Foster
has bills payable agGregating S12O.OO0 with
bills receivable for about the same amount.
Their stock will invoice about SS0.OOO so
that the grocery creditors will lose nothing.
The three window-gloss houses have about
100000 worth of glass on hand. with notes
out W hich will more than absorb it. The
brass and iron works may pay ont dollar
for dollar with little time to avoid sacri-
ficing assets. The Fostoria Light and
Power Company, which includes the IL
lum mating gas and electric.light plants.
Is thought 20 have some large obligations
outstanding No other business or manu-
featuring erterprises are thought to be in
volved and 20 further failures are looked
for. Mr.. Foster Is bearing uD well under
his crushing blow.
MIR. FOSTERS STATEMENT.
The following statement was given to
the public this morning:
Words cannot express the deep distress and
humiliation feel. If could bear all the bur
den that my failure will entail should feel q
sense of relief. IL is no consolation, in looking
back over business life OF forty-five years,
which has gained for me q position OF confidence
that has rarely been achieved, 10 know that I
have aided hundreds OF people to maintain an
honorable standing and TO gain q competency,
and some a large degree of wealth. L know that
now have Dy my failure injured many people.
But hope none are TO be ruined. When / re-
turned from Washington / knew that my in
dorsements for the window glass companies and
the brass and iron-works company were
very large-so large, in fact, as to
Induce me TO fear that would
have TO suspend at that time. j, how
ever, prevailed upon q friend TO give me a large
amount of help and then felt confident that
could maintain myself and finally come out all
right. These concerns owed more than / then
supposed, and. To add TO my misfortunes, the af-
fairs of the Fostoria Light and Power Company,
OF which am q large slockholder and indorser,
proved 10 be i'll bad shape financially. Then
came the unfortunate financial condition of the
country Everyone that 1 owed wanted his
glass instead of being in cash were made in pa
per; sales, in fact. came TO a standsti. L
struggled, seeking every possible means to tide
over the situation until am compelled 10 as
sign. did not give mp the struggle till to-day.
Ii Will take the assignee some time 10 make mp
the schedule or my affairs. In my affairs 1 in
clude Foster x Co.. the Croker, Malb0urg and
Calcined Glass companies, the brass and iron
works and the Fostoria Light and Power Com
pany.
can see plainly that IN settling my affairs
TO he reduced TO cash. large sacrifices will be
made. This being so, cannot give encourage
ment that my debts will be paid In full. The
other concerns with which I connected are
all on q sound basis, except. possibly, Davis az
Foster. They have a surplus OF $4,000, and
ought 10 pay in full. Ny failure must doubtless
cause a shock TO the interests of the city, from