The morning call., 1893-05-27
He Had Too Many Irons
i'm the Fire.
MUCH MONEY HAS VANISHED.
Not Few Will Lose, Although an
Endeavor Will Be Made to Pay
Up Everything.
Special to THE MORNING CALL.

rOSIOhIA. OHlO, May Zl.-ll6 business
world was startled to-day by the news
that eX-Secretary of the Treasury Charles
Foster had failed and had turned his
heavy financial interests over TO an
assignee. The latter is j. 3. Gormlee. a
prominent banker of Bucyrus, and warm
friend of Foster. The liabilities are given
out by Foster as being $500, 900 and assets
about the same.
At an early hour this morning the bank
OF Foster d Co. was closed on an attach
ment for $500 in favor Of the Isaac Harter
Milling Company. and at the same time
the Wholesale grocery-house of Davis &c
Foster was closed by another attachment.
The news spread rapidly, and soon the
streets were filled with people anxious to
learn the extent OF the calamity.
The assignment Of Foster was the sig
nal for the assignment of a number of
concerns in which he is interested The
brass and iron works here was one of
these. The liabilities and assets of this
company are included In Fosters person al
statement. The Malbourg Crockery and
Calclned Glass Companies, concerns
backed by Foster. also failed.
The loss to business men who were de-
able features of the crash, but it is conf
IDENTIFY believed that none of them will
suffer TO an extent that will cause them to
go under. A run was made on the Me-
chanics' Savings Bank this morning as
soon as its doors were opened, but all de-
mands were promptly met.
The assignment of Davis & Foster,
wholesale grocery-hOuse, will probably be
the direct cause of the failure of number
Of grocery concerns. The firm has S120, 900
of unpaid accounts and notes due it.
The deposits of the bank at the last
statement were S170,000, and the failure
was due to the fact that Foster has been
heavy ndorser of the three assigned
window-glaSs bouses and the brass and
iron works, his Endorsements aggregating
over 100000. The strngeDcy of the
money market caused the banks to request
the payment of these notes. and as the
bank also indorsed much of this paper it
is not thought it can pay its depositors
in full.
The grocery creditors will lose nothing
The three window glass houses have
about $4,000 worth OF glass on hand, but
the notes out will more than absorb Ii.
The brass and iron works may pay out
dollar for dollar with a little time to avoid
sacrificing their assets.
The Fostorla Light and Power Com
pany, which includes the Illuminating gas
and electric-ight plants, is thought TO have
some large obligations outstanding.
No other business or manufacturing in
terests are thought TO be involved and no
further failures are looked for The loss
fn Enst0ria io nm
count in no way lessons the sympathy ex-
pressed for the ex-Secretary. It's conced-
ed that his generosity and public spirit
have been the indirect cause of his finan-
cial downfall, as he was ever ready to lend
helping hand.
Ex-Governor Foster has made a state
ment expressing his deep distress and
humiliation over the failure, saying his in
d0r5ements for window-glass companies
and the Brass and Iron Works Company
are very large and precipitated the failure.
He continues rs follows: II can see plainly
that in settling my affairs through the
courts, thus compelling my assets to be re-
duced to cash, large sacrifice will be
made. This being so / cannot give en-
couragement that my debts will be paid in
full. The other concerns with which | am
connected are on sound basis. except,
possibly, Davis q Foster; they have sur
plus of $4,000 and ought to pay in full. It
is only just to myself to say that two thin gs
caused my dOwnfall-one was the neglect
of business occasioned by my devotion to
politics, the other to an overZealous desi re
to build up Fostoria. DO not know that
at my time of life l ought to indulge the
hope of being able to repair my fortunes
anc pay my debts, but that l shall try will
be the one end for which l shall live"
The Ex-Governor Graves the generous
judgment of the public, and estimates the
liabilities of the various concerns involved
at 100000 the assets OF which. on paper,
will more than cover the liabilities. lie
concludes by saying the school funds and
building and loan association fund are Sc
cured against loss.
NEW Y DIRK, May 26.-No astonishment
was manifested in Wall street at the
Foster Banking Company's failure. One
banker said he knew the firm had been In
tight place for money for some time.
Foster got caught between seed time and
harvest" he continued. land was unable,
like many others, to get money when he
needed it, and. like them, ne undoubtedly
had to throw up the sponge. One trouble
with him has been the fact that he was
interested in too many things, and it is a
bad time for man to be carrying too
much sail"
Foster was generally considered by
Wall street men to have taken an active
interest in the affairs of the street and is
supposed to have been associated with
Senator Calvin s. Brice and General
Samuel Thomas in some of their deals
The amount of their speculations, how.
ever. is said to have been grossly exagger-
ated.
Senator Calvin S. Brice said, 81 know
nothing of Fosters assignment beyond
what heard this morning"
| Since Foster left the Treasury Depart.
ment he has paid off $150,000 of his obliga.
tions here, and but for difficulty in max.
| ing loans would have been able to carry
on his various enterprises.
WASHINGTON. May 26.-Universal sym.
pathy is expressed here with ex-Secretary
Foster in his financial difficulties. espeei.
ally in the Treasury Department, where
he was very popular. Those intimate