The Portland daily press., 1894-11-13
THE COFFIN B STANTON FAILURE

The COFFIN STANTON FAILURE,
Maine Banks But Slightly Involved and
Their Loans Are Protected-A Statement
by Hon. Charles j. Chapman.
The Boston Journal says that the New
York brokerage firm of Coffin & Stan ton,
which has caused furry in the business
world on account of the unloading securi-
ties alleged to be worthless all over New
England, had from time to time transacted
considerab BILE amount of business with GER
tain houses in Portland. One of the Port
land institutions, is the Chapman Banking
company. It's vice president is ex-MayOr
Charles j. Chapman, and one of the men,
bers of the advisory council in the Coffin 6
Stanton failure is Mr.. Chapman.
Mr.. Chapman is in New York, where he
has been for a week, with the object of in
vestigating the II oubie. Robert Chapman.
one of the largest stockholders of the Chap
man Banking company, was, however.
seen. He stated that he was not at all sur
prised at the disclosure of Coffin & Stanton.
for it was known number of weeks ago
that such an event might be expected. Mr..
Chapman believes that other firms in this
state are also sufferers, but he had no doubt
that the tangled affairs would be smoothed
over in manner entirely satisfactory to
all. just the amount that may have teen
lost in Portland, Lewiston. and Bangor
cannot De estimated at this time. but it is
believed that it will have reached large
figure when tine settlement is made.
Cashier James H. Hamilton of the Worces-
ter National bank. knows much of Coffin &
Stanton. II told the Journal correspond
emit that the firm wrote several letters to
his bank asking for loans and it's agents
came to Worcester to see his people several
times and tried to place its paper there with
out success. Coffin C Stanton offered
higher rate of interest than the market
was paying and presented securities. some
of which were good. but the most Of which
were not marketable. The Worcester bank
officials told them that if they would give
as security all gilt edge paper like some
they offered they could have the money,
but the firm did not comply with this re-
quest and negotiations stopped there.
The above article was shown to Hon.
Charles ]. Chapman last evening, and he
said it was full of inaccuracies. Some time
since the firm of Cofhn & Stanton voluntily
went into the hands of a receiver, their
creditors being one hundred and fifty or
more Of the largest banks throughout New
York, and the New England Sattes, who,
for the most part. had made loans upon
bonds as collateral. The receiver, instead
of taking upon himself entirely the respon-
.sbilitv of the disposition of the assets of
the estate in the liquidation of it's debts,
asked the creditors to name an advisory
committee to act in conjunction with HIM
self to secure the best possible results, and
such committee. chosen from different
sections of the country was appointed, in
GLIDING Vice President McHarg of the Man
haitian bank of New York; President De
Vries of the Baltimore National bank; S. r.
Hney of the PENNSYLVANIA Mutual Life In
surance company of Philadelphia; Erastus
Corning. president Albany City National
bank; President Reynolds. Patterson
Savings Institution; President Bard of the
Nowrich National bank of Connecticut. and
himself. as vice president of the Chapman
National bank of this city. The committee
met the past week in New York and organ
lied, and will probably recommend some
plan of an extension to the creditors of
Coffin & Stanton, whereby there will be no
forced sale of the securities hold as collater-
al. In case case of such extension Msssrs
Coffin Stanton expect to not only pay
their debts in full but to be left with
handsome surplus.
The Journal confounds the Chapman
Banking company with the Chapman
National bank. The former institution
went out of business more than year ago,
and has no business relation whatever with
Coffin & Stanton. The Chapman National
bank has however. small loan with Coffin
& Stanton, which is abundantly secured
with municipal bonds. and there is no
probability of any loss whatever, to the
bank. The same is true with several other
banks in the State of Maine that made loans
to the firm. but are well secured,