St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-05-27
All Of His Heavy Financial
Interests Placed With an
Assignee.
His Liabilities and Assets Are
Both Placed at $780,
900.
Inability to Renew Outstand-
ing Notes the Cause Of
the Failures.

world was startled this morning by the
newStiat eX-Secretary of the Treasury
Charles w. Foster had failed. and that
he had turned his heavy financial in
terests in an embarrassed condition
over to an assignee. The assignee
is j. B. Gormlee. prominent bank
er of BuryruS, and warm friend
OF Mr.. Foster. The liabilities are given
out by Mr.. Foster as 100000. and the
assets as about the same. He made the
assignment during the night, and the
papers were filed at Tifnn by Mr.. Scott,
his attorney.
Early this morning the bank of Foster
Il Co. was closed OH an attachment for
So, 200 in favor of the Isaac Harter Mill
ing company, and at the same time the
wholesale grocery house of Davis
q Foster was closed by an at
tachment for $1,000 in favor of
o. Il. Brown. The presence of
the sheriff was the first inklng 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 assign
ment 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
to assign. Besides Mr.. Foster Mr..
P0rtZ was one of the owners of their
concern. The liabilities aud assets of
this company are included with the per-
sonal statement of the secretary. The
Malbough. Calcined and Crocker Win.
dow Glass companies. three concerns
that have been backed by Mr.. Foster,
also failed.
The loss to business men who were
depostOrS in Foster u Co bank is one
of the deplorable 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 Saw
ings bank this morning as soon
as its doors were opened, but
with $4,000 in currency piled up on
the cashiers desk, the demands of all
frightened depositOrs were promptly
met and none turned away. The loss
to FOStorla is great one and one that
will require considerable time 10 re-
cover from; but, great as it is, the
regret Oh this account in no way
lessons the regret and sympathy
expressed for the eX-Secretary. 1t is
conceded that his generosity and public
spirit has been the indirect cause of his
financial downfall, as he was ever
ready to lend helping hand. The
assignment of DAVIS q Foster, the
wholesale grocers, will probably be the
direct cause of the failure of a number
of grocery concerns throughout the
country. 1t is said that the firm has
$125,000
Unpaid Accounts and Notes
due it. The deposits of the bank at the
time Of its last statement were about
$4,000, but 1t is impossible to ascertain
what they are at present, as the cashier
OF the company, j. E. Wilkesen, is re-
ticent,- land prefers to have the assignee
make a public statement. Mr.. WilkeSOn
is also treasurer of the Fostorla school
district. The board of education had
$4,000 Oh hand.
The failure is due to the fact that Mr..
Foster has been very heavy indorser
of the three assigned window glass
houses and the brass and iron works,
his Endorsements of these companies
aggregating over 100000. The strin-
gency of the money market caused
banks TO request payment of the
notes, which precipitated the failure.
As the bank also in0Qrsed much of this
paper it is not Thought that the bank
can pay depositorS in full. The bank
had large line of deposits,
but the amount cannot be ascer-
OF Ifrh hn yhOIn
Gerry firm of Davis q Foster has
bills receivable tor about the same
amount. Their stock will invoice about
$4,000, so that the grocery creditors
will lose nothing. The three window
glass houses have about 100000 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 Fostoria Light and Power
company, which includes the illuminat-
ing gas and electric light plants, is
thought to have some larae obligations
outstanding. No other business or
manufacturing enterprises are thought
to be involved, and no other failures are
looked for. Mr.. Foster is pea ring up
well under his crushing blow.
Dragged Down a Ssank.
FINDLAY, o., May &c. = President
Lloyd Weisel, of the Peopl's bank at
North Baltimore, which carried very
heavy deposits of the oil producers
in the oil country, was here this
evening endeavoring to procure aid
Failing to secure this he announced that
his bank would close its doors tomor-
row morning, having been dragged
down by the failure of ex-Secretary
Charles Foster, OF Fostoria. The
failure of the North Baltimore Fur
niture company, and the second blow
made run upon it today which it will
not be able to stand tomorrow. Charles
Foster was a stakeholder in the bank
Oil operators and producers will lose
many thousands. Findlay banks are
unaffected by the Foster failure.