The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-05-27
COULD NOT RAISE MONEY
Ex- Secretary Of the Treasury Foster,
Of Fostoria, Ohio, Makes an
Assignment.
Involved In Too Many Enterprises
and Gave His Time UP to
Politics.
Made Fortune and Then Lost II Again-
General Expression Of Sympathy
for Mr.. Fostor.


FosroRrA, O.. May 26.-Ex-Ssorstsry Of
tha Treasury Charles =. Foster has failed
and made an assignment. He began busi-
ness in Fsstoria ss dry goods merchant.
Soon after ths war closed he helped to or
Ranizs the Fostoria National bunk. BY
shrewd Investments in real estate he be-
came wealthy. and In 1879. whom elected
governor Of Ohio for the first tims 10 was
reputsd to Be worth million dollara Dur
ing the nsxtf four ysara he lost heavily in
Lake Superior copper mines. In the nat
urAl gas and street railway spesulations at
Findlay daring its temporary boom hs in
vested heavily. Whom the bubble burst hs.
with many others. Was caught for thou
sands Of dollars. He also lost By sndora-
Ing notes for business aud political friends.
Since then hs has attempted 70 recover his
losses. bat only became more deeply In
vOlved.
The crash vas temporarily avsrtsd BY his
appointment % secretary Of the treasury.
According to The latest Issue Of the Bank
e,'s Almanac the Foster Banking company
has = capital. Of $4,000, surplus $1,000.
and undivided p.onts. $1,000.
The city was shaken to its circumference
by the announcement Of the assignment.
as IL was recognised that this meant The
downfall Of some of Fostoria's most
prominent institutions. Assignment was
made TO ]. B. Gormlsy. president of the
First National bank, Of Buoyrus. Of the
banking house OF Foster d Co.. the whole
sAlo house Of Davis & Foster. nnd Charles
Foster Individually. Tho Affairs Of the
Manbory d Crooker Calsinsd Glnss COM
psny. the Brass and Iron works and the
Fostoria Light and Power company are 90
involved that they are expected to be In the
hands OF an assignee.
Everything is In chaotic condition. The
bank carried several hundred Thousand
dollars of deposits and had negotiated
loans for ths brass works and glass houses,
giving its own endorsement. This caused
the crash. The banks holding the gov
ernor's paper demanded their payment. and
having 30 mach paper out As was unable to
| reapond.
Gov Foster issued . statement. express
ing deep distress and humiliation over his
failure. saying his endorsements for the
window glass company and brass and iron
works company were very large and pre-
cipitatei the failure. and continues - fol-
| lows: II can see plainly that in settling
my affairs through the courts, thus oom-
| pelinR my assets to be reduced to cash. q
large sac ifce will he made. This being 30.
! cannot give the sncon' sgenent that my
debts will be paid in full. The other con-
Germs with which l am connected are on q
sound basis except possibly the Davis q
Foster company. They have surplus
of $4,000 and ought 10 pay in
that two things caused my downfall. One,
the neglect of business. occasioned by de-
votion to politics; the other an over-zenlous
desire 10 build up Foato Ia. l do not know
that at my time of life ought to indulge
| in the hope of being able TO repair my for
tunes and pay my debts. but that shall
try will be the ono end for which shall
live"
The governor oraves the generous judg.
ment of the public and estma ss that the
liabilities of the various concerns involved
ars 5000, 900; the assets of which, on paper,
more than cover the liabilities. He con-
oludes by saying that the school fund and
the Building and Loan association fund are
secured againsS loss.
| Deposits of the bank at The last state
msnt were $4,000. The failure was due
to the fact that Foster has been heavy
endorssr of the three assigned window
glass houses and the brass and iron works.
dis endorsement aggreRatinR over $500. 600.
| No other business or manufacturing inter
ests are thought to be involved and no fur
| ther failures are looked for. The loss to
Fostoria 10 great. butreRret on THE account
for the sx-secretary. 1t IL conceded that
his gsnsr osity and public spirit have been
| the indirect oauae of his financial downfall.
rs he was ever ready to lend helping hand.
| NEW YORK, May 26.-The Foster failure
caussd NO astonishment in Wall street. In
certain circles it has been known for some
time that the firm was in tight place ior
| han EA. hat hR
been ''caught betwesn seed time and bar-
vest" The trouble with him, he said
"was that hs was interested in too many
things"
Foster was generally sonsids Cd BY Wall
street men to have taken an active interest
In Wall street affairs and IL supposed to
have been associated with s nator Calvin
(. Brio, and Gen. Samuel Thomas in some
| of their deals. The amount OF his specu-
lation is said to have been grossly exagRer-
atei. Senator Calvin s. Brios said this
morning: II know nothing Of Foster's
morn,na." Since Foster left the treasury
department he has paid off $150.OO0 Of his
! obligations here, and but for the difficulty
in making loans would have been able to
cniry on HIS various enterprises.
F1NDLAY, Ohio. Nav 26.-Prssident Lloyd
| Weisel, of the Peoples bank at North Bal
timors, which carried very heavy deposits
of oil producers In the oil country, was
here this evening endenvorina to procure
aid. Failing 70 do this he snnouncod that
his bank would close its doors tomorrow
mo. ming. having been dragged down by
the failure of Ex.s scretary Charles FosteE.
WASHINGTON, NAV 26.-Universal SYM
rathy il expressed here with Ex-Seotssary
foster in his financial difficulties. especially
| in the treasury department., where hs was
livery popular. Those intimate with him
here knew Of the close quarters In which he
wns. friend expressed tue fear that the
results would be severely felt in Ohio.
The Cruise Not Popuias