New-York tribune., 1893-12-03
THE BIG STEIN FAILURE.
WILL OTHER HOUSES FALLi
FOREIGN BANKERS SEEK TO HAVE THE1B
LIENS PREFERRED.

CARRYING OTHER CONCERNs-CLASH OF
EUROPEAN AND HOME CREDITORS
LONDON STOCK sPECULATIoNs RE.
PORTED TO BE PRIMARILY RE-
spoNsIpLE FoRTHE CRASH.
The developments of yesterday in the failure
of the house of Abe. Stein & Co.. importers Of
hides and skins at No 81 Gold-st., which was
placed in the hands of receiver on Friday.
proves that it may be far-reachng in its eff
fects, and certainly will open wide field for
litigation with regard to the treatment Of the
assets of the firm. The failure may involve
other concerns of Importance which have been
practically carried through the hard times Of
the summer and autumn by Abe Stein & Co.
Foreign bankers who have advanced credits to
the firm have taken legal proceedings to es-
tablish a preferred lien on some Of the goods
and funds held by it or to its credit here. and
their claims will be vigorously resisted by the
receiver in the interest of the general creditors.
An entirely new phase OF the situation Is also
presented by the indications that possibly Il
may prove to have as much OF financial -
of a purely commercial character.
1t said yesterday that the real secret OF
the failure Of Abe. Stein & Co. the un-
fortunate operations Of Abe. Stein. the senior
partner. on the London Stock Exchange. The
report could not be fully verified and the at
torneys for William H. Hdreth the partner
who had the house placed In the hands Of re-
ceirer. ignorant Of the circumstances al
though they were by no m cans increduous that
this might prove to be the case A few years
ago Mr. Stein was credited with being worth
more than 81 900 900. He is a large owner of real
estate in this city. but no estimate Of its value
could be made yesterday. His address is No.
L~ocf ft,,-ci civfb- 10 ha N
with his wife. He has no children. 1t was
said on good authority yesterday that Mr. Stein
has in the last two years operated largely In
stocks in London. He is said to have met
severe losses in the last two years. and his
wealth is believed to have been greatly reduced.
1t is not known in what securities he has been
specializing, but it Is surmised that his losses
grew out Of transactions In American securities.
1t IS thought by well-nformed persons that the
house would not have been carried down
if it had not been for these unfort-
unate speculative ventures Of the senior
partner. Should this prove to be the
case it may have an important bearing upon
the final condition OF the liquidation Of the sus-
pended firm
ESTIMATE OF THE LIABILITIES.
1t has been estimated that the liabilities Of
Abe Stein & Co. amount to at least s1.ooO,ooo
ceiver or his counsel, and owing to the possi-
BILE complications with the house OF Jacob Stein
G. Co. Of London whose failure on Thursday II
said to have precipitAted the collapse Of the
New-York house, the Liabilities may prove to b
larger. There official connection be-
tween the two firms but their business and
banking transactions were closely comminged.
and it is yet impossible to say how far an
interchange OF credits may affect the outcome
of the two suspensions.
But it is considered certain that the New.
York failure may have an important effect
on other houses in the same line Of busi.
ness in NewEngland. According to Hor.
WITT Hershield lawyers at No. 277 Broad.
way. who are counsel foi Mr.. Hildreth. the
partner who secured the recevership. there are
four or five large concerns in the Eastern States
whose notes have been literally indorsed by
Mr.. Sten-in fact. who have been virtually car
ried financially by him. The Stein failure will
throw them on their own resources and It IL
believed that it will be extrepely difficult for
them to secure accommodations independently.
Otto Horwtz said yesterday: "One of the mis-
fortunes Of the failure is that it is likely to in.
volve several other houses whose business rela-
tions with Abe Stein e. Co. were close OF
course | cannot name those houses, although
! am daily expecting to hear Of their passing
under receiverships." 1t is not believed that
any NewYork hide house is similarly situated
THE FIRMS BANKERS HERE.
Abe Stein e. Co kept accounts in this city with
the Hanover National Bank. the Hide and
Leather National Bank. the Hanover National
Bank the National Union Bank and the Bank
Of America The firm had loans with nearly all
Of these banks, but the officers declared in each
that the loans were amply secured the
courts. however have been called upon 10 oe-
termine this question. Justice Miles Beach OK
the New-York Supreme Court. yesterday Issued
injunctons against the firm. the receiver and
the Hanover, Hide and Leather and Bank OK
America restraining all of them as defendants
from disposing of goods and proceeds to which
claim is laid by several foreign bankers, Inc
firm and the receiver ordered TO make no
disposition Of these assets, and the New YORK
banks enjoined from using any assets OF the
firm in their possession for the protection OK
their own claims. These proceedings were !n-
stituted by the British Bank OF South America
and the German Bank Of London, through tneir
Nev-York correspo oadents the Nationa' Bank OF
New-York the London and River fiate BANK.
through william Seton Gordon, agent; baIin9
Brothers & Co. of London. througn sarns' T
bankers of London. The hearings on the tenn
porary injunctions will be had on Tuesday. Inc
agsresa,e aTs are between 100000 and 100000.
The suit OF the British Bank OF South
America furnishes the model for the other suits.
This bank alleges that 1t issued letters Of credit
to Abe. Stein & Co.. secured on invoices ana
hills of lading for goods shipped from London to
that firm. which were subsequently delivered to
stein 4. Co i'm exchange for a trust receipt,
which reads follows
PROPERTY IN TRUST.
pece,ved of the British Bank OF South Amcriea,
limited through its correspondent the Bank Of New.
york n. B. A. the merchandise specified In the
hill Of lading per -, which agree to hold
on storage as the property Of the vank, with liberty
10 sell the same and account for the proceeds to its
CORRESPONDENT. until all bills OF exchange drawn Tor
our account on the said bank shall have been paio
or satisfactorily provided for to keep said properly
insured against fire. payable In case OF loss % tne
correspondent OF the bank for its account with the
nding the bank Is not to be chargeaoe
with any expenses incurred therein the Intention
Of this ARRANGEMENT being to protect ana preserve
-, III. ,rad tha lien NJ the British Bank OF South