St. Paul daily globe., 1893-04-20
ON the BRINK OF RUIN
A Michigan Millionaire At
tempts to Save His Sons
Business Honor.
Every Venture the Young Man
Engaged in Proved a
Failure.
Runs on Several Lansing
Banks Precipitate the
Barnes Trouble.
Four Hundred Thousand or
His Paper Held by Lo-
cal Banks.

LANSING. Mich, April IA mill
ionaire, who yesterday didn't owe a
dollar in the world, is today likely to go
broke This is the paradox III imam
ciering which Lansing presented this
morning. Representatives of the COM
merclal agencies, lawyers and others,
who have swarmed into the city in con-
seQaence of the embarraSSmentS OF the
Lansing Iron and Engine works and the
Lansing Lumber company, describe the
situation as one of the most remarkable
which has ever come under teir ObSer-
walton. Since Jan. 10 NJ. Barnes has
been sacrificing his personal means IN
an effort to hold up the two big con-
Germs which financial disaster has at
last overtaken. Up to yesterday he
had paid from his private means obllga-
tionS incurred by the two corporations
aggregatinc S125,O00, and yesterday he
pledged the balance of his private for
tune for the payment Offurther Liabilities
exceeding over 500. 0C0, taking in return
the mortgage covering all the property
of the two firms. Mr.. Barnes took the
action he did to save the credit and the
business honor of his son, .. +. Barnes,
president of both the iron works and
the lumber company.
Lansing banking and business circles
have never been so rudely shaken IN
the towns history. Nearly 100000 OF
4l - iC IAlH - l
banks,
The Largest Holders
being the Michigan Central Savings
bank, 100000, and the Ingaham County
Savings bank, sSl, 800. Between S650O0
and $4,000 worth of the firms paper is
also held by Detroit banks. The closing
of the Central Michigan Savings bank
yesterday afternoon was caused by the
lack of confidence resulting when it be-
came known that the institution was
weighted down with 100000 of the in
solvent cOmpanY'S obligations.
1t was an anxious nighta at the capitol.
Bank directors and leading business
men were holding secret conferences in
various portions of the town, the direc-
torate of the Ingaham County Savings
bank continuing in session until mid
the Ingaham County bank when it
opened this morning. Commercial de-
pOsitors were promptly paid, but the
legal three months notice was required
on savings deposits. President Humph-
rey announced confidently that the
bank would be able TO meet all obliga-
ti0ns, but the crowd was uneasy and
anxious. About 10 o'clock Bank Com
missioner Sherwood made speech to
the crowd in front of the lngaham
County bank, and quite a number re
tired reasSured there was perceptibie
decrease in the withdrawal of deposits.
Deposits are being withdrawn from
other banks, but at noon there were
anxious crowds present.
The statement is given out that .. NJ.
Barnes private assets with the assets
of the two embarrassed companies ag-
gregate 81, ,G93, 900. Every effort was be-
ing made TO restore confidence this
morning. but there was
a PanickV Fee ling
in many quarters. Every one ascribes
the cause of the trouble to the poor busi-
ness methods of o. NJ. Barnes. Young
Barnes is also president of the Lansing
Wheel works. The reason for the run
on the Ingaham County bank
was explained by Bank Com
missioner Sherwood in his speech
to the assembled depositors this morn
ing. Last Saturday night the vice pres
ident of the bank, DR.. j. 5. MOffett
withdrew all his money from the bank
and took it over to the City National
bank. This fact was soon nOised about,
and it was thought that if an official had
lost confidence in the bank something
must be wrong. Mr. Sherwood de-
nounced DR.. MOtfett for what be called
coWardice, and assured the depoSitoTs
that the bank was sound and that not a
dollar would be lost. Later in the day
DR.. Moffett resigned the vice presidency
OF the bank.
0. F. Barnes is blamed for bringing
financial ruin down upon his father.
Twelve years ago the young man ac-
uuired an old irOn-working plant here
and organized the Lansing Iron and
Engine works, making himself the
president of the corporation. The firm
manufactured engines of large size,
boilers. municipal water works plants,
etc. The business required ability OF
the most superior order for its success
full management, in which young Mr.
Barnes was deficient. Instead of contin-
cceded to spread out until his operations
attained an
Ea Almost NapOleOnfc Scale.
Six years ago he organized the Lam
sing Lumber company. The firm, be-
sides dealing largely in lumber al
wholesale ana retail, runs large and
costly woodworking plant in this city
Then he put in stock of mill supplies
in connection with the business of the
iron works, and also engaged i'll the
manufacture of pumps and windmills
Both these departments have passed
to others under a reorganization. He
also organized the Lansing Wheel
works, and is said to have lost heavily
in the venture. He tried the real eS-
tate market, but was unsuccessful in
this, as in all of his ventures. The
general statement is made that Mr.
Barnes has lost on nearly everything
lie took hold of.
Late this afternoon it was believed
that the crisis had passed and that III
further bad effects will be felt from the
failures announced yesterday. All eX
element has Quieted down. The banI
commissioner expects to conclude hi
examination of the Central Michigan
tomorrow, and not until then will til,
assets aud liabilities be known