The San Francisco call., 1896-05-10
Owes a Million and Half, but
Creditors Will Be Paid
in Full.
ALL PROPERTY TURNED OVER.
The Pressed Millionaire Was a Noted
Prohibitionist and Once Ran
for Governor.

AKRON, ONO, May 9.-Ferdlnand Schu-
macher, the millionaire oatmeal king,
president of the American Cereal Com
pany of Chicago, the Schumacher GYM
nasium Company of this city. the Mar
seilles Land and Water Power Company,
the Illinois River Paper Company of Mar
seilles, ILL.,, and the Tennessee Land Com
pany of Hartman, Tenn, assigned at
O'Clock this afternoon. The liabilities are
estimated at $1500.000 and the assets at
So, 900. The assignment was a voIun-
tary one.
Until three years ago Mr.. Schumacher
was resident of Akron, at which time he
removed to Chicago. When the American
Cereal Company was organized he entered
the combine and was elected president
which position he occupied and has since
held. The failure was caused bv his heavy
losses in the two companies at Marseilles,
which assigned this morning. In order to
save these companies Mr.. Schumacher
borrowed $780, 900 from Akron, Cleveland
and Massachusetts, banks. $500 900 of which
would become due this month
The greater portion of this amount could
not be renewed nor could Mr.. Schumacher
raise the moRey TO pay the discounts on
the notes. Yesterday he called his attor-
ney, Johnston n. Arbogast, and his
nephew, Hugh Schumacher, to Chicago
and his financial condition was carefully
examined. Late yesterday be decided to
assign for the benefit of his creditors and
a trust deed conveying all his property to
Johnston Arbogast and Hugh Schumacher
was prepared. This was filed in this CITY
to-day.
The property turned over for the benefit
of his creditors consists of 81, 600, 600 worth
of stock in the American Cereal Company,
$4,000 worth OF stock in the Schumacher
Gymnasium Company, the Clarendon Ho-
tel and his residence in this city, besides
large amount of real estate in and about
Akron. Altogether, the property turned
over is estimated at 1000, 900. at the
same time the deed in trust was filed a
deed in trust by the Schumacher Gymna-
sium Company was also filed. The assets
of this company are estimated at $40, ,OOO,
with the liabilities much in excess.
About six years ago Mr.. Schumacher
founded Hartman, Tenn. He is a strict
prohibitionist, and founded the city on the
same principles. The result was he lost
nearly $500 900 in the transaction. Twelve
years ago he was the candidate on the
Prohibition ticket for Governor of Ohio.
]. a. Arbogast, one of the assignees, said
tonight that if the property is not sold at
forced sale the creditors will realize dol
lar for dollar, but if the property was sold
they would lose heavily, as there is no
market for it just as present. But one
mortgage was filed by Mr.. Schumacher.
That was for $4,000 and given to twenty
creditors, jointly, who held claims aggre-
eating $500 to $1,000 against Schum acher.
OTTAWA, ILL, May 9.-Careful investi-
CATION fails to show cause for the 81 ,OOO.-
600 failure of the MaTseiIles Land and
Water Power Company and the Illinois
River Paper Company at Marseilles, out
side the general breakup of Fred Schu-
macher at Arkon, Ohio, he being the prin.
cipal owner of both places at Marseilles.
His investment in toe little CITY con-
sisted of the control of the finest water
power plant in the State, the largest straw
board mill in the world, the Crescent mill.
wood pulp MILL an electric light plant
and coal mines. On account OF the general
business depression none of these had
prospered the past two years, but his losses
IN them were not extensive.