New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-14
AN OIL FIRM IN TROUBLE.
LOMBARD & AYRES SUSPEND PAYMENT.
so ASSIGNMENT IN VIEW. THE MEMBERS SAY
EMBARRASSED BY THE SEABOARD
LrMRER COMPANY'a TROCDLEs.


LUMBER CoMPANy's TROUBLES
Much surprise was created in financial circles
BY an announcement late yesterday afternoon
that Lombard & Ayres OF NO II Broadway had
suspended payment. The firm. Sbich is com !
posed Of Josiah Lombard and Marshall Ayres
has had extensive oil and 'umber interests, ana
has had high capital rating.
Josiah Lombard. the head Of the firm. lives in
a fine mansion at No. 2,yci Fifth-ave, at one
hundred and twenty -seventh-st He was busy in
consultation with lawyers last night and a Trib-
lne reporter who went TO the house was no. be
10 see him. Mr. Lombar.s cousin, whose name
also Is Josiah Lombard. was at the house and
said TO the reporter:
1T Is true that the firm of Lombard & Ayres
backed the Seaboard Lumber Company ana that
the troubles Of that company have involved the
firm In financial difficulty. The firm to-day sus-
pended payment some paper, but the meHh-
bers of the firm have no intention of making an
assignment at present. They believe that they
will lose nothing very little on account OF
the troubles of the lumber company, because
they think that the asset7 Of the lumber COM
oany will be found to be in excess of It's iiap'l-
tiles or course much depc Ids upon the manner
in which the affairs OF the lumber company are
settled up"
Ayres are short OF money to meet their imme-
date obligations. account of the sudden sus-
pension of the lumber company, bat they eH-
rect f., get on their feet lin a few days and go
on with their business usual. For that
reason they are 1ot thinking OF making an
assignment"
HOW THE TROUBLE BEGAN.
The first knowledge that the Seaboard Lumber
Cornanv was in trouble obtained when an
attachment for $4,000 against it was reported
as having been secured at Mobile. Ala, on De-
cernber 5. This company was ORGANIZED py
Lombard e. Ayres. who were l;s thei S'ocN'
ho|dfrs and financial supporters
NeitEer MIR. Lombard nor Mr.. Ayres was AT
the firms Office when the information ol ltS
embarrassment got into circulation. The actual
nature Of TIE suspension Of payments: accoru'nH
to the story. was the inability OF the 'rul -
meet notes IT had indorsed for the Seapodld
COMPANY. and these had, therefore, gone 10
Reuben Smith. cashier for the firm, was at
the Office and said that the Sea board company
had pra ,tlcally gone out of business ana a
meeting Of its creditors was soon TO be heId.
Lombard & Ayres had been trying to carry II
along. but the attachment at Mobile !nvoiVso yea
IL so deeply that ii was concluded TO nave the
company 20 into liquidation. The SeaDoard
Company has its Offices IN the same building az
those Of Lombard & Ayres. the preslaenl %
tho company II. d. Haven. was found there,
but would only say that no application had Deeh
made For n receiver 70 ~,
Af
st where Lombard & .Ayfes kept their account
il was said they had small balance ar present
! Their cashier had been a: the bank ana sald
that me firni had not ARRANGED 10 mahe an a. a.
| signment At the National Park Bank. No. IA
! BROADWAY where the Seab0ard Lumber Com
| paay kept its account. it was said that the BANK
| held only small amount of the company
paper and was amply protected against loss on
| it. l. was known the bank that the COM
| pany had been trying for two weeks to quidate.
SKETCH OF THE FIRM.
Is I,ffsrd es Ayres btgpif business In 1897 and
( in 1880 Incorporated as Lombard. Ayres & Co,
! TO conduct their dealings in petroleum. Lombard
& Ayres continued their own copartnership, but
! changed the nature of their operations TO that of
/ hnanclers They undertook the capitalization Of
| and acted practically as the bankers for com
| panies which they formed to engage in the o..
| and lumber trades with which they had long
been identified. Ir 1894 they were put down in
| commercial reports being worth sl,2j0O0O.
| Their interest IN the Seaboard Lumber Company
which they organized was said al the time 10 be
! $500 OC0
| The Tidewater oil Company was a creation of
| theirs intended To- succe 4 the corporation OF
! Lombard Ayres & Co in supplying oil principally
! To Mexico Tha company Rad operated refineIies
! at san Luis Potosi. The control Of the company
was turned in 1893. 20 the ridewater Pipe
| Line Company, a concerr owned by the stand
! ard OIL Company. 1t was alWaVs understood that
/ the firm was identified with the Standard Oil
| Company. Another oil co npany Of which the
firm was the promoter and IN which ii has been
a large stockholder. is the Century oil Company.
Of Lima. Ohio
TIN. object Of the formation of the SeabOard
| Lumber Company to handle the export
| lumber business. which the finn had built up.
! The company maintained an Office i'm London.
| While Lombard < Ayres were carrying on bust
ness for themselves. they enjoyed uninterrupted
PROSPERITY. Their present embarrassment is at
| tribu.eG solely TO their advances 10 and ndorse-
menis for the seaboard Lumber Company.