The weekly tribune., 1893-06-02
A Big FAILURE.
Ex-Secretary Foster Goes Under and
With Him a Number of
Other Firms.
Generosity and Public Spirit the
Indirect Cause of His Finan-
cial Downfall

FosToRIA, o., May 2G.-The business
world was startled this morning by the
news that ex-Secretary Of the Treas
ury Charles w. Foster had failed and
that he had turned his heavy financial
interests in an embarrassed condition
over to IN assignee. The assignee is j..
B. Gormlee, prominent banker Of Bu-
cyrust, and warm friend of Foster.
The liabilities are given out by Foster
as being SG00,0OO and assets as about
the same. He made the assignment to.
night and the papers were FLED at Tiflin
by his attorneys. The bank Of Foster Il
Co. was closed on an attachment for
81, 200 in favor of the Isaac Harter Mill
ing company, and at the same time the
wholesale grocery house of Davis e. Fos-
ter was closed by an attachment for
$1,000 in favor of o. n. Brown. The
presence Of the sheriff was the first ink.
ling many people had that there was
anything wrong and it soon leaked out
that an assignment had been made. The
assignment of Secretary Foster was the
signal for the assignment OF number of
concerns IN which he was interested.
The brass and iron works was one to as
sign. Besides Foster, Portz was one of
the owners Of this institution. The liza
blities and assets of this company are
included with the personal statement of
the secretary. The Malbourg, Calcined.
and Crockett Window Glass companies.
the three concerns that have been backed
by Foster. have also failed.
The loss to business men who were
depositors in the Foster & Co.'S bank is
one Of the deplorab!e features of the
crash, but it is confidently believed that
none Of them will suffer to an extent
that will cause them to assign.
A run was made on the Mechanics
Savings bank this morning as soon as
its doors were open, but with $4,000 in |
currency pjlcd up on the cashiers desk |
the demands of all the frightened de-
postors were promptly met and none
turned away. The loss to Fostor,a Is a
great one and one that will require con |
time to recover from, but great |
as it is the regret on this account in |
no way lesscned the regret and sympathy |
expressed for the xsecretary. 1t is
conceded that his generosity and public
spirit has been the indirect cause of his
downfall as he was over ready
TO lend helping hand.
The assignment of Dakes q Foster,
wholesale grocers, will probably be the
direct cause of the failure of number
Of grocery concerns throughout the
1t is said that the firm has
Sl23,0O0 unpaid accounts and notes due
it,
The deposits Of the bank at the time
Of it's last statement were about S175,OO
but it is impossible to ascertain what
they are at present as the cashier OF the
company, Mr. j. f.. Wilkeson, is reticent
and prefers TO have the assignee make a
public statement. Wilkeson is also
treasurer of the Fostoria school dis
trict. The board OF education had
had $4,000 on hand. The failure is due
to the fact that Foster has been very
heavy indorser of three assigned window
glass houses and brass and iron works.
HIS Endorsement of these companies ag-
,regates over 100000. The strngency
,f the money market caused the banks
70 request the payment Of notes, which
- piSSipitdt'' thO no tHo Dduh
also indorsed much of this paper it is
lot thought that the bank can pay de-
oositors in full. The bank had large
inc OF deposits, but the amount could
lot be ascertained tonight
The wholesale grocery firm Of Davis e.
Foster has bills payable aggregating
100000, with bills receivable for about
he same amount. Their stock will in
voice about sS0,0O0 so that the creditors
will lose nothing. The three window
glass houses have about 100000 worth
If glass on hand. with notes out which
will more than absorb it, The brass and
ron works may pay OUT dollar for dollar.
The Fostorla Light e. Power company,
which includes the Illuminating Gas d
Electric light plants. is thought to have
some large obligations outstanding. No
)ther business or manufacturing enter
)rises are thought to be involved and TO
urthcr failures are looked for.
Foster Is bearing up well under his
blow.