The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-12-06
ACCOUNT OF THE FAILURE.
Full Details of the Great Bushes,
Crash.

Crash.
/ CHICAGO, Dec. 5.-Embarra SSed by
their inability to meet outstanding pa
per, a. H. Andrews & Co., the largest
school supply house in the world, was
forced to close its doors today. After
confessing judgment in the circuit
court for $25,7 44 in favor of the Globe
National bank, the company made an
assignment to Frederick A. Holbrook,
the secretary. The assets were given
as between $500, 900 and $500, 900 and the
! liabilities between S350000 and $400,0
The judgment was on two notes exc
cuted November Is, one for $16500 and
the other for $4,000. The sheriff took
possession of the company's down
! lowed no one to enter except represen-
| t&tiVeS Of the bank.
Two Citations.
Just before the closing of the office
of the county clerk. two citationS were
! obtained for the examination OF the
debtors. The petitions were filed by
the Chicago Varnish company and Vic
tor Achelis & Co, of New York. Judge
Yates issued the citations and made
them returnable Saturday morning. In
the circuit and superior court the IN
solvent company was the subject OF
five attachment suits for small
amounts. The plaintiffs are the Amer
lean Screw company, the Hanson Il.
Van Wrinkle company, the Yale and
Towne Manufacturing company
Shultz & Hirsch and Heath, Witbeck
& Co.
In Business Thirty Years.
In various forms the company has
been in existence thirty years, and
its business has increased in volume
every year until two years ago. Since
that time, about the time of the gen
eral depression, the business decreased
at an alarming rate. For several
months the company has been en-
barrassed and was obliged to put a
good deal of paper on the market.
This concern is now an Incorporated
company The officers are: A. H. An
d-ews, president; S. Z. Holbrook, vice
president; F. A. Holbrook, secretary,
and A II. Carey, treasurer. The COM
pany employs about 400 persons.
The assignment was filed by John
son & Morrill,, attorneys for the COM
pany, and Mr.. Johnson said it was
precipitated by the action Of the bank
in entering judgment upon the
notes of the company. The attorney
said the company has been under
severe strain for the last two years
and when the Judgment for $4,000 was
executed it was concluded it would be
best to make an assignment for the
| benefit of its creditors.
why it Was Done.
During the hard times of the last
two years" said the attorney, the
company has carried its usual large
expenses, the payroll amounting tc.
from $4,000 to $4,000 each two weeks.
Recently business has improved great
~, but the company has been unable
to secure the ready money to extend
its business and get rid of stock which
had accumulated
poration, 5000 is owing to the Globe
National bank, 10000 to the Union
National bank and the remainder is
distributed among the stockholders of
the company who have loaned money
to the corporation. and various mer-
chants in the lines Of business with
which the company was called.
The corporation has been a good Gus
toner of the banks and these loans
were easily obtained. When the date
for payment came it was found that
the obligations could not be met, and
on November IS the debts We're cast
IN the form of judgment notes. The
Andrews company has done business
with the Globe National bank for
years, and it was with reluctance that
the bank decided to obtain judgment
on the notes they held against the
company. 1t was seen, however, that
the affairs of the company had reached
a crisis, and in order to secure their
money the bank officials placed the
notes in the hands of their attorney,
James L. High, with instructions to
proceed at once to their collection. The
formal entering of judgment was per-
formed and the sheriff was put in
charge Of the property.
HoIbrooI< Converses.
Frederick A Holbrook, the assignee,
said: This has come upon us like
lightning from a clear sky. Our bust
ness was prosperous and at the present
time we were in the midst of very
busy season. Our only difficulty was
with reference to immediate funds
Notwithstanding the pressure we were
under, we had placed ourselves in a
position where we hoped to secure suf-
ficient cash within forty-eight hours to
carry us out of the urgent demands of
our creditors. We were carrying of
course. a heavy load. which began to
be heaped upon us during the financial
depression of some two years ago. The
weight has increased somewhat be-
cause business for a. long time was not
very active. Much to our regret, cir
cumstances SO shaped themselves that
we were forced down under the pres
sure just at a time when the way
seemed to be opening to a clear bust
ness run and a decidedly more pros
porous season. The immediate cause
of our failure was the judgment of
S25, 900. We were Just about to con-
summate a deal whereby we were to
dispose of our school supply depart
ment. Had this deal been put through
before the judgment was entered we
would doubtless have been able to
cancel the notes held by the bank and
thus put ourselves beyond the danger