The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-05-31

HIS LIN DaErassnitnl - n pennsylvania
Banker Closes Up.
FosToMA, o., May 26.-The business
world was startled this morning by the
news that ex-Secretary of the Treasury
Charles Foster had failed, and that he had
turned his heavy financial interests in an
embarrassed condition over TO an assignee
The assignee is J. B. Gormlee, a promi-
nent banker OF BucYrus and a warm
friend of Mr.. Foster. The liabilities are
given out by Mr. Foster as being $780,
600. and the assets as about the same.
He made the assignment during the night,
and the papers were filed at Tifin by Mr..
Scott, his attorney. At an early hour this
morning the bank OF Foster q Co. was
closed on an attachment for g. 200 in ia
vOr OF the Isaac Harter milling company
and at the same time the wholesale grO-
Gerry house of Davis & Foster was closed
by an attachment for 81, 200 in favor of o.
7. Brown
The presence OF the sheriff was the first
inkling many people had that there was
something wrong and it soon leaked out
that an assignment had been made. The
news spread rapidly and soon the streets
were filled with people eager to learn the
extent Of the calamity.
The assignment of Secretary Foster was
the signal for the assignment of a number
of concerns in which he was interested.
The brass and iron works was one of the
concerns 10 assign. Besides Mr.. Foster,
Mr.. Portz was one of the owners of
this concern. The liabilities and as
sets of this company are included
with the personal statement of the secre-
tary. The MalbOurg. Caicined and Crock
er Window-Rlass companies. three concerns
that have been backed by MIR. Foster. also
failed. The loss to business men who
were depositors in Foster & Co.'s bank is
one OF the deDorable features of the crash
but it is confidently believed that none of
them will suffer TO an extent that will
cause them to assign.
Run on a Bank.
A run was made on the Mechanics
savings bank this morning as soon as its
doors we're opened, put with $4,000 in
currency piled upon the cashiers desk
the demands of ali frightened depositors
were promptly met and none turned
away. The loss to Fostoria is great one
and one that will require considerable
time to recover from, but great as it is,
the regret on this account in no wav
lessons the regret and sympathy expressed
for the secretary 1t is conceded that his
generosity and public spirit have been the
indirect 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 d.
rect cause of the failure of a number Of
grocery concerns throughout the country.
1t is said that the firm has SI25, 900 unpaid
accounts and notes due it. The deposits
of the bank at the time Of its last state
ment were about $4,000 but it is
impossible to ascertain what they
are CT present, as the cashier of the COM
pany, MIR. j. T.. Wilkison, is reticent and
prefers to have the assignee make a public
statement Mr.. Wilkison ia also treasurer
OF the FosiOris school district. The board
of education had $4,000 on hand. The
failure is due to the fact that Mr.. Foster
has been a very heavy indorser for the
three assigned window glass houses
and the brass and iron works, his Indorse-
ments for these companies aggregating
over 100000. The stringency of the
money market caused banks TO request
pay VI vic nOtc5t uiCn pIcClp4lahbu
the failure. As the bank also Endorsed
much of this paper, it is not thought that
the bank can pay depositors in full.
The bank bad large line OF deposits,
but the amount cannot be ascertained to-
night. The wholesale grocery of Davis q
Foster has bills payable, agGreRating
$4,000, with bills receivable for about
the came amount. Their stock will in
voice about $4,000, so that the grocery
creditors will lose nothing. The three
window glass houses have about S100,O00
worth of glass ON hand with notes
out which will more than absorb
it. The brass and iron works
may pay out dollar for dollar with little
time to avoid sacrificing assets. The Fos-
toria light and power company, which in
cludes the illuminating gas and electric
light plants is thought to have some
large obligations outstanding. No other
business or manufacturing enterprises
are thought to be involved and no further
failures are looked for.
Mr.. Foster is bearing up well under the
crushing blow.
His Obligations TO Hardness.
Mr.. Foster borrowed $4,000 of his
friend, Dan Hardness. of Bellevue, o..
giving for the same a deed for the two
Foster blocks and his stock in two factor
les. This relief caused him TO think he
could pull through. but the continued
money strinVency compelled him to meet
more paper as it matured, until finally he
saw no hope of relief and general assign
ment was the only course left. The
wholesale grocery house of Davis & Foster
will pull through all right il is thought il
matters are not forced. The brass and
iron works are in fair financial shape.
showing a surplus of $4,000, but under &
forced sele these assets will greatly shrink
and they NAV not be able TO pay out.
The three window glass houses are in
worse shape. They have 100000 stock
on hand while their paper is out for over
5000 600. Creditors will realize 80 cents
on the dollar on window factory paper,
while stockholders will get nothing. OF
the light and power company nothing will
be made.
A run is being made on the Mechanic
saving bank, but they can pay every dol
lar as fast as called for. A big pile OF cur
rency, over $4,000, is now on the coun-
ter, and more will be here tomorrow. This
bank is absolutely sound and it is in no