The record-union., 1893-05-27
special to the REcoRp-UN1ox.


FosroRIA (O.), May 26.-The business
world was startled to-day by the news
that ex-Secretary of the Treasury Charles
Foster had failed and turned his heavy
financial interests over to an assignee.
The latter is J. b. Gormley, prominent
ex-banker of Bucyrus and and warm
friend of Foster. The liabilities are
given out by Foster as being $6O0,00 and
the assets about the same. Al an early
hour this morning the Bank of Foster u
Co. was closed on an attachment for s., 200
in favor of the Isaac Harter Milling
Company, and at the same time the
wholesale grocery house of Davis &
Foster was closed by another attachment.
The news spread rapidly, and soon the
streets were filled with people anxious to
learn the extent of the calamity.
The assignment of Foster was the sig
nal for the assignment of a number of
concerns in which he was interested.
The Brass and Iron Works here was one.
The liabilities and assets of this company
are included in Fosters personal state
ment. The Mslbourg Calcined Ware and
Crockery and Window Glass Companies,
concerns backed by Foster, also failed.
The loss to business men who were de-
POSTERS in the bank is one deplorable
ieature of the crash but it is confidently
expected that none of them will suffer to
the extent that will cause them to go un-
der.
A run was made on the Mechanics
Bank this morning as soon as its doors
opened, but the demands were promptly
met.
The assignment of Davis & Foster,
wholesale grocery house, will probably
be the direct cause of the failure of a
number of grocery concerns in the State.
FOSTERS ASSIGNMENT.
COLUMBUS (O., May 26.-A special
from FostOria, o., says: Ex-Secretary of
the United States Treasury harles Fos-
ter and the banking house of Foster &
Co., have assigned. There is great ex-
element at Fostoria.
A dispatch from Fostoria says: Ex-
Secretary OF the Treasury Charles Foster
has failed and made an assignment. He
began business in Fostoria as dry goods
merchant. Soou after the war closed he
helped to organize the Fostoria National
estate he became wealthy, and in 1879,
when elected Governor of Ohio for the
first time, he was reputed to be worth
81, 100000. During the next four years he
lost heavily in the Lake Superior copper
mines, in natural gas and street-railway
speculations. At Findlay, during its
temporary boom, he invested heavily.
When the bubble burst he, with many
others, was caught for thousands of dol
lars. He also lost by indorsing notes for
business and political friends. Since
then he attempted to recoup his losses,
but only became more deeply involved,
and a crash was temporarily averted by
his appointment as Secretary of the
Treasury. 1t is thought he will at best
not be able to more than pay his debts.
According to the latest issue of the
Bankers Almanac, the Foster Banking
Company has a capital of $4,000; sur
plus, $1,000; undivided profits, 1000.
FosTORIA SHAKEN.
FosToRIA (O.), May 26.-The city was
shaken to IFS circumference this morning
by the announcement of Ex-Governor
Fosters assignment, as it was recognized
this meant the downfall of some of Fos-
toria's most prominent institutions. The
assignment was made to J. B. Gormley,
President of the First National Bank of
Bucyrus, of the banking house of Foster
& Co.. the wholesale house of Davis IL
Foster, and Charles Foster, individually.
The affairs of the Mambory- Crocker
Calcined Glass Company, Brass and Iron
Works and the Fostoria Light and Power
Company are so involved that they are
expected to be in the hands of the as
sisnee before the close of day. Every
thing is in chaotic condition. The bank
carried several hundred thousand dol
lars deposits and had negotiated loans for
the brass and glass houses, giving its own
Endorsement. This caused the crash.
The banks holding the ex-Governor's s
paper demanded payment, and, having
much paper out, he was unable to re-
spond.
Ex-Governor Foster has made a state
ment expressing his deep distress and
humiliation over the failure, saying his
Endorsement for window-glass companies
and the Brass and Iron Works Company
are very large and precipitated the fail
ure. He continues as follows: al can see
plainly that in settling my affairs through
the courts, thus compelling my assets to
be reduced to cash, large sacrifice will
be made. This being so 1 cannot give
encouragement that my debts will be
paid in full. The other concerns with
which I am connected are on a sound
basis. except, possibly, Davis IL Foster:
they have surplus of $500 and ought
10 pay in full. II is only Just to myself
TO saw two things caused my downfall
one was the neglect of business occa-
stoned by my devotion to politics: the
other. to an over-zealous desire to build
nm Fostoria. do not know that at my
time of life ought to indulge the hope of
being able to repair my fortunes and pay
my debts, but that [ shall try will be the
one end for which l shall live" The ex-
Governor Graves the generous judgment
OF the public. and estimates the liabilities
of the various concerns involved at $500, :
600, kpe assets of which, on paper, will
more than cover the liabilities. He con-
concludes by saying the school funds, and
Building aud Loan Association fund, are
secured against loss.
NO AsToNTsHMENT FELT.
NEW YORK, May 26.-No astonishment
was manifested in Wall street at the
Foster Banking Company's failure. One
banker said he knew the firm had been