The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-06-04

rmb,rrs.smcnt. the Causes of
,..lsnmrnt-Mny Fay Up In Full.
100 -urc alderman SchafInor X Co..
Ih, h,Dgo-s. mado nn nssignm ent to-day.
F'eSs 90. have leen tho largest private
Nn,nH f, Ifs city or In tho Northwest, deal
lapA .,c,usiyey in commercial paper. The
hr o,so ono Of tho oldest Of its kind In
chicago ,, .ousod nv tbo Jisnp.
NV oi Herman Schaffncr. the senior
FA'hH, the arm. The other member Is 4.
n e. Tor ,eyeral days tho bank has been
u...r,ic an TITO impending disaster mp
M 10 have distressing effect upon MIR.
I'Sro, Yesterday afternoon no lett tho
"a has not been seen since, The
""A Ia feared by his friends and business as
WIZ, During yesterday afternoon he did
f0.' ss,oor ot his usual places. and during the
iO' s,, vigorous search was maintained BY
hslamiIH. rat n;s.;np
o'clock this morning Julius Rosenthai.
n,.o,bsr.in. law went to the homo OF Chief
n,r.,,.o NcIlaushrey and told the surerin-
UT ~ Police tho facts in the case. Mr..
W.,hol was not yet ready to make formal
hS n,no, chief McClaughrey for aid In finding
.i.sinr banker aud lie would not leave n
Wv s..,,od description. rs is usual in such cases.
w. made A request that the department
W.. ,.,, Ia him at onco any Information that
u1.hS,s learned OF the absent bank President.
w. po.en,hul said that he did not know what
..,hint Of the absence Of his relative. neither
H,ha troy what rlan OF action to follow. The
S.n,o wore instructed this morning however.
,.t..p n sharp lookout for Schniiner
NJ scha,ner's partner was so anxious over
a.. d,s,ppearance OF his associate that last
s,,ht bs became i'll. and to-day he is at home
.a,sned to his bed. 1t is feared that the
,,ouble threatened Uy the shadow OF the COM
ms business collapse may have made Mr..
S,b,fruer temp rarily insane. or that an accl-
tsh. i iaSy Of the affairs OF the bank was
IA IN court on the application for receiver.
SsS assignment OF the bank was made to the
f.Y Tho cashier + that institution visited tho
Ssnt Al the litls and Trust tutldinE only TO
ind a demonst:attys crowd assem- oiod ana
nv doors closed. To ndd to tho excitement 1t
vas reported that 9chaI her ''"u coh Ni'''ou
suicide. .,, ,,,rs.or,ors d,s,nnoor-
, ,nsS o. vas sxpatnabs only on one ground
P Ieyoninept tanker said: III schatlner has
sesn djsposing OF com mercinl paper without
disappeared 90 not 500 why he iet' IL '"'S
NJ; Is said said that the creditors OF tho bank will
ssrtne The assignee. said this morning that
even 10 the event OF forced liquidation there
win be enough money TO meet all liabilities.
No statement OF tho assets aud liabilities is
nossjble until the assignee goes over tho books.
A meeting OF those Interested in the bank will
b had on Monday or Tuesday next to see
about resum ing business.
r. Chapman. cashier OF tho American
Trust and savings Bank. the assignee. put up
tho following notice: This ank is in the
ms Bank" To inuuirers MIR. Chapman Bald:
"icannot tell what tho assets and abilities
are until l get a statement from the books.
The cause OF the failure il too much CONNER
cal PAPER They were the biggest dealers in
comm ercial paper in the country, They han
died sj5. coo. 900 Of it last year. There was no
md that is the cause Of the failure. / can say
iothnc further until a statement has been
reparsd OF the banks condition. and men aro
tsss time 9n en aso noM Is said Co.
stsaught in the Deimcl Brothers' failure for
l nSs Sf siIurs for s25. o0O and in the NJ i
hys tai ure for largo amount
fhe deposit business OF schaiTner & Co. is
said 10 have been only moderate. Regarding
il is said that Schaffner never sold am with
bis Own endorsement. but always ON its merits.
have any money Of his own. he borrowed from
the banks and pledged the commercial notes
as collateral. One theory Of the cause OF the
failure was that Schaffn or had bean caught in
1.-THE tig slump on tho local stock Exchange.
and that his losses broke his heart and caused
him to disappear.
f has made an official statement. saying: Air.
Becker the Junior memner OF the firm. realiz-
Ing that MIR. schaflner,s unarcountahle alb.
sencs might create agitation IN the minds Of
those with whom tho firm. had been doing
business. took counsel with, several OF the
leading bankers rs vel rs with his .contiden-
kiai .h,iaa and nd tn mil
Segment, which was accordinEl y done. 1t is
expected that the assignment will be but
temporary, and. in tho meanwhile, complete
inventory OF the firm 8 assets will be made by
tho assignee. The firm did large COM
nsrcial brokerage business with banks all
over the country; which would buy the
paper In the regular course OF business, the
4 trm making thereby a small brokerage. The
trm sold the paper without endorsing IT,
and without any liability. the paper helm:
houses which made, 1t. SUFFICIENT invsstiga-
tpn shows that no bank in the city or else
s Ssnt BY s.r H.
ienttivas entertain no doubt that the firm.
s ssl ~ GIee! hllPHidaton' is amply abio to
itis given out by those concerned that the
hhahllltes OF the concern will not exceed $780,
W. and that the assets more than cover that
the most exciting scenes ever witnessed on
We foor OF the Chicago Stock Exchange
!tom the opening to the close the bidding
.aesplTllcN, ana AN I'm cnep number or dealS
were put through. Stocks declined with sur
ttlslnr rapIditv. md for a time tho oldest
WWoEers We're At less to estimate how long
nesump would continue. AZ IL result OF the
@%Is trading many Of the small holders OF
| ueM chicago Hallway and North Chicago
Meet Hallway stocks hnv- had serious trouble
~ meeting Their margins. North Chicago
starting point
Asa result Of the suspension L. Zachman. n
Eeu!If 20 tle amount Of 5000, appeared be-
s we 1udRo Dnnnslly in the County Court and
Sssu!sG AGITATION against Schatfner and Beck
NJ NJ, sqmmohing thcm into court for examine
ssas .LAchman's attorneys are said to repre-
ss Gs h .ne other creditors 10 the amount Of
Me- wh" Will insist npon al examination
"@sh affairs in court.
s.1S.Mnongh II was not apparent tim. Herman
sssahef \ SUSPENSION would have any direct
E,eSsm Sew York, the news was UNPLEASANT
L,,SsaGsHtsr Was known in New York as the
e,yNss.aeaIeT IN commercial paror in Chi
aau IN Iact, the largest west oil the AIle-
| XrN Ne Was not known here rs II banker
sad mat Il" Hah ono of tho best Judges
{o,S umelcia Iaper in the couatry. His New
eb,n,ss VTItrshondrrt was the American Ex-
knl.se hallohnl Bank. Cashier Burns OF that
eomm salu that tho institution had not bought
WwSsIcia! paper since 1881.
ma, Sbqrns added that for n long time Her.
tn hsntn1hhe had had a good balance with
EsbsahhE not less than $4,000 at any time.
liz Esa h. not asked ior any accom- m odation and
Iusn.n.hMas MTt involved in any way by his
ShisSl s. IhCrs was one check for $40 on
hst iWmcL' had been stopped after the
s@a "au fals {, liut this amount the hank
Nhob,S A. IeNIllr get hack from the person