The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-05-27
CHARLEY FOSTER FAILS.
The ex-Secretary of the Treasury
Assigns.
IL is A VERY BAD FAILURE.
A Number of Fostoria Industries Car
ried Down with Him.
He Admits That the Cause of His Down.
fall Was Neglect of Business for
Politics and Desire to Build
Up His Town.

FosToRIA, o., May 26.-The business
world was startled today by the
news that ex-Secretary of the Treas
ury Charles Foster, had failed and had
turned his heavy financial interests
over to an assignee. The latter is j.
B. Gormlee, prominent banker of Blu
cyrus, and warm friend. The liabilities
are given out by Foster as being $500, 600
and the assets about the same.
At an early hour this morning the bank
of Foster & Co. was closed on an attach
ment for So, 200 in favor of the Isaac
Harden Milling company, and at the
same time the wholesale grocery house of
Davis & Foster was closed by another at
tachment. The news spread rapidly and
soon the streets were filled with people
anxious to learn the extent of the calaEn-
ity.
The assignment of Foster was the signal
for the assignment of number OF con-
Germs in which he was interested. The
Brass and Iron works here was one, and
the liabilities and assets of this company
are scheduled in Fosters personal state
ment. The Mambourg, Croker and Cal
cined Window Glass companies, concerns
backed by Foster. also failed.
The loss to business men who were de-
positors in the bank is one of the deplor-
able features of the crash, but it is conf
IDENTIFY believed that none OF them will
suffer to an extent that will cause them to
go under. A run was made on the Mer-
chants Savings bank this morning as
soon as its doors were opened, but all de-
mands were promptly met.
The assignment of Davis & Fosters
wholesale grocery house will probably be
the direct cause of the failure OF num-
Der of grocery concerns in the state. The
firm has SIPS, 600 in unpaid accounts and
notes due it. The deposits of the bank at
the last statement were $40, 200.
The failure is due to the fact that
Foster has been heavy endoTser OF the
three assigned window glass houses and
brass and iron works, his endorsements
aggregating over $500, 600. The stringency
in the money market caused the banks to
request the payment OF notes, and as the
bank also endorsed much of this paper
it is not thought the bank can pay de-
positors in full. The grocery creditors
will lose nothing.
The three window glass houses have
about 500, 600 worth of glass on hand,
with notes out which will more than abb
sorb it. The Brass and Iron works may
pay out dollar for dollar with little time
to avoid sacrificing its assets. The Fos-
toria Light and Power company, which
includes the Illuminating, Gas and Elec-
trio Light plant, is thought to have some
large obligations outstanding.
No other business or manufacturing
| interests are thought to be involved and
no further failures are looked for. The
| loss to Fostoria is great but regret on this
account in no way lessons the sympathy
| expressed for the eX-secretary. 1t is
| conceded his generosity and public spirit
has been the direct cause of his financial
| downfall, as he was ever ready to lend a
| helping hand.
| MIR. Foster began business in Fostoria
as a dry goods merchant and soon after
! he helped to organize the Fostoria Ma
tional bank, and by shrewd investments
in real estate he became wealthy, and in
| 1879, when he was elected governor OF
| Ohio for the first time, was reputed to be
worth 81 ZOO, 600. During the next four
years he lost heavily in Lake Superior
copper mines. In natural gas and street
railway speculations at Findlay, during
its temporary boom, he invested largely,
and when the bubble burst, he, with
many others, was caught for thousands
of dollars. He also lost by endorsing
notes for business men and political
| friends. Since then he has attempted to
recoup his losses, but only became more
deeply involved. The crash was tempo
rarily averted by his appointment as sec
rotary of the treasury.
| Governor Foster has issued statement
expressing his deep distress and humilia-
ton over the failure, saying his endorse
ments for the window glass companies
| and brass and iron works company were
very large and precipitated the failure.
and continues as follows: s'I can see
plainly that in settling my affairs through
| the courts, thus compelling my assets to
be reduced to cash, large sacrifice will
have to be made. This being so, cannot
give encouragement that my debts will be
paid in full.
"Other concerns with which l am con-
nected are all on q sound basis, except
possibly Davis & Foster; they have a sur
plus of $50, 900 and ought to pay in full.
It's only just to myself to say that two
things caused my downfall, one the ne
glect of business occasioned by devotion
TO politics, the other an over-zealous de-
sire to build up Fostoria. do not know
at my time of life that ought to indulge
in the hope of being able to repair my
fortunes and pay my debts, but that
will try will be the one end for which
shall live.''
The governor Graves generous judg'
ment OF the public and estimates the liza
bilities of the various concerns involved
at 5000, 600, the assets of which on pape
more than cover liabilities. He conclude
by saving the school fund and buildin,
and loan association fund IS secured
against loss.