The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-27
MEN OF VARIED
ENTERPRISE FAIL
Properties of Norton & Co.
to Pass Into the Hands
of a Receiver.
Gambling Speculations Cause
the Downfall OF the Well
Known Firm.
The Father of the Embarrassed
Brothers Gave to Lockport It's Com.
mercial Start in Life.

CHICAGO, ILL, Dec. GA com mercial
failure of large proportions was recorded
this afternoon by the appointment OF the
Chicago Title and Trust Com pany receiver
of the various properties of Norton Il Co.
of Chicago, Lockport and Romeo, ILL.,,
and Niagara Falls, N. Y. The firm con-
sists of John L. Norton, who lives in
Lockport and Lemuel D., his brother,
whose home is in Evanston.
The receivership proceedings before
Judge Hanecey were of the agreed kind,
Lemuel, the plaintiff, alleging that the
affairs of the partnership were complicated,
the assets in danger of being dissipated,
and he petitioned for dissolution and
receivership to wind up the business. John
l.. Norton assented and joined in the state
ment that the liabilities did not exceed the
assets two to one. The bulk of the firm s
business Is located at Lockport and the
ad joining town of Romeo, near this city.
The father of the brothers was a pioneer
in that part of Illinois, and really gave
Lockport it's commercial start in lie by
founding the Lockport Milling Company,
nearly forty years ago.
1t was this business to which the broth
ers succeeded at the death of their father.
The Nortons were the financial stay of the
city. The property owned there consists
of fourmill with capacity of 1000
barrels daily, machine-shops, elevator,
warehouse and an electric-light plant for
supplying light to the city. 1 he firm has
also done private banking business to a
large extent, and nearly half the people of
Lockport are directly affected by the fail
ure through deposits of money.
John l.. Norton is also president of the
Northern Milling Company, which oper-
ates large hourmil at the Madison
street bridge over the Chicago River in
this city, although the brothers do not
own controlling interest in that property
now. The company owns paper-mill at
Niagara Falls and has large interest in
the electric-power enterprise at the falls.
They own large grocery-store at Romeo,
on the Illinois and Michigan canal. The
main office of the company is IN Chicago,
at 1863 Jackson street.
John l.. Norton when seen at his Lock
port home tonight by the United Associa-
ted Presses correspondent, declined to
make statement of the assets and llabil-
tiles of the firm. 1t is known that the
net earnings of the milling property have
been $75, 00O year in recent years. The
firm became financially involved through
board of trade speculation some years ago,
one of the brothers specializing without
the knowledge of the other and other seri-
Gus burdens coming uron the firm in the
present hard times, it became impossible
TO longer carry on the business.
Holders OF the company's obligations
pressed for immediate payment since the
collapse of the National Bank of Illinois
and kindred concerns. The firms credit
became exhausted and the receivershlp
became necessary to conserve the inter
ests of the estate. The brothers have
been in business over thirty years and
their integrity has never been questioned.
The collapse caused general surprise in
Lockport and the gloomy outlook it has
created is only dispelled by the long
standing faith in the firm, coupled with
the prevailing belief that the assets will
greatly exceed the liabilities.
1t is said that the company is large
creditor of the National Bank of Illinois,
and inability to meet the demands of de-
positors IL Norton & Co.'S Bank had much
to do with the receivership action.
Miller A. Barnham, representing the
receiver, went at once to Lockport and
took charge of the property tonight.
Noble B. judah, counsel for John L.
Norton, said: There is fair show for
the creditors. Gambling losses caused
the trouble, and the firm could not go
through these hard times. All the avail
able assets are tied up in the firm, and it
is impossible to correctly estimate the
assets and liabilities. John Norton made
the original strawboard trust, and was a
millionaire once. His father had a pros
porous milling business i'll LoCkport when