The herald., 1893-05-27
FOSTERS FLAT FAILURE
Ohio's Napoleon of Finance
Goes to the Wall.
Politics and Bad Investments
Ruined Him.
The Late Secretary of the Treasury
in Sore Distress.
He Makes an Assignment OF All His
Property-Other Persons and Firms
Involved-Great Excitement
at Fostoris.
By the Associated press.I

By the Associated Press.l
FosToRIA, o., May 26.-The business
world was startled to-day by the news
that ex-Secretsry Of the Treasury
Charles Foster, had failed and turned
his heavy financial interests over to an
assignee. The latter is J. B. Gormlee,
prominent banker OF Bucyrus, and a
warm friend of Foster. The liabilities
are given out by Foster as being $780,.
600, and assets about the same.
At an early hour this morning the
bank OF Foster & Co. was closed on an at.
tachment for $4,000 in favor Of the Isaac
Harter Milling company. and at the
same time the Wholesale grocery houseof
Davis 4 Foster was closed by another at
tachment. The news spread rapidly
and soon the streets were filed with
people anxious to learnthe extent ofthe
calamity.
OTHER CONCERNS DRAGGED DOWN.
The assignment of Foster was the
signal for the assignment Of number Of
concerns in which he is interested. The
brass and iron works here was one. The
liabilities and assets of this company are
included in Fosters personal statement.
The Mambourg Crockery and the CAL
cined Glass companies, concerns backed
by Foster, have also failed.
The loss to business men who were de-
positora in the bank 10 one of the de-
plorable features of the crash, but 1t is
confdentially believed none of them will
suffer to an extent that will cause them
to go under.
A run was made ON the Mechanics'
Savings bank this morning as soon as it's
doors opened but the demands were
promptly met.
The assignment Of the Davis & Foster
| Wholesale grocery house will probably
be the direct cause of the failure of sev-
eral grocery concerns in the state. The
firm has S125,000 unpaid accounts and
| notes due it.
! The deposits of the bank at the last
statement were $4,000.
CAUSE OF THE FAILURE.
The failure was due to the fact that
Foster has been heavy endorser of the
three assigned window-glass houses and
brass and iron works, his endorsements
aggregating over 100000. The strin-
gency of the market caused the banks
to request the payment of the notes. As
the bank also Endorsed much of the
paper, it is not thought the bank can
pay the depositors in full. The grocery
creditors will lose nothing. The win
dow-glass houses have about 100000
worth of glass on hand, which the notes
out will more than absorb. The brass
and iron works may pay out dollar for
dollar, with little time to avoid sacri-
fcing assets.
The Fostoria Light and Power COM
pany, which includes illuminating gas
and electric light plants, is thought to
have some large obligations outstand-
ing. No other business or manufacture
ing interests are thought to be involved,
and no further failure is looked for.
The loss to Fostoria is great, but the
regret on this account in no way lessons
the sympathy expressed for the ex-eec-
retarv. 1t Is conceded that his generos-
ity and public spirit has been the direct
cause of his financial downfall, as he
was ever ready to lend helping hand.
FOSTER MAKES A STATEMENT.
Foster has issued statement EXPRESS
ing his deep distress and humiliation
over the failure, saying his Endorsements
for the window glass companies and the
Brass and Iron Works company were
very large and precipitated the failure,
and continues as follows:
Il can see plainly that in settling my
affairs through the courts, thus COM
pelling my assets to be reduced to caah,
a large sacrifice will be made This be-
ing go, / cannot give the encouragement
that my debts will be paid in full. The
other concerns with which [ am con-
nected are all on sound basis, except
possibly Davis & Foster; they have a
surplus of $50, 900 and ought to pay in
full.
"It is only Just to myself to say two
things caused my downfall--one, neglect
of business occasioned by devotion to
politics; the other, to an over-zealous
desire to build up Fostoria. l do not
know that at my time of life ought to
inudlge the hope of being able to repair
my fortunes and pay my debts; but that
shall try will be the one end for which,
shall live."
The governor Graves the generous
Judgment of the public, and estimates
his liabilities in the various concerns in
volved at $600,000, the assets of which
on paper more than cover the liabilities,
and concludes'by saying the school fund
huu DuliuiHS huu LOAn AHDUClhtiuu luUu
are secured against loss.
FOSTERS FINANCIAL CAREER.
Foster began business in Fostoria as
dry goods merchant poor after the war
closed. He helped to organize the Fos-
toria National bank. BY shrewd invest
ments in real estate he became wealthy,
and in 1879 when elected governor of
Ohio for the first time, was reported to
be worth million dollars. During the
next four years he lost heavily in the
Lake Superior copper mines. in natural
gas and street railway speculations at
Findlay. During its temporary boom he
invested largely; when the bubble burat
he, with many others, was caught for
thousands OF dollars. He also lost by
endorsing notes for business and polit-
ical friandH. Since then he has attampt.