The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-27
LOWELL ARMS co. ASSIGNS.
CARRIED down by THE GLOBE
BANK WRECK Nv BOSTON.

Former President Cole of the Bank was
the Practical Manager of tho Company
and Had Used About 81, zoo. 900 OF the
banks Money Few Other Creditors
BosToS. Dec 26-Tha John p. Lowell Arms
COMPANY and the John L. Lowell Company as
signed to-day for the benefit OF their creditors.
George II. Ball and Charles b. Barnes. Jr..
we're named ne assignees In both cases The
Formally OF fling the assignment papers al
the city Clerks ONCE was confirmation OF
ru7lor which las beon In circulation among
the business men OF the city for several days.
The rumors wrre denied even up to last night,
but the belief was general. nevertheless. that
Il was only a question of n short time before
the failure would le announced.
The report caused little surprise among
those familiar with the recent financial standing
Of the Arms company. II was in bted for large
amounts to tho Globe National Bank and this
institution. or more exactly. it's recent Presi-
dent. Mr. Cole has been represented In the
Lowell business by G. W. Norcrosa. who IL said
to have managed the concern for more than
year IN the interests OF the bank. IL was said
that Mr. Cole, the recent President OF the bank.
had eIchan .ed the plperof the Lowell Company
for mining securities. but the fact that Mr..
Norcrnss has remained IN charge up to the
present VOL d seem TO cast doubt upon this
story. II - said that the merchandise bills
contracted 10y the company have been paid as
pruuptly as those ~ most business houses. 40
that the manufacturers who have supplied
them with goods are not very largo creditors.
tho bulk OF the indie ltcdness being to banks
who have discounted tho company paper.
Assignee Bal. when asked BY the Sun COR
respondent for a statement Of the liabilities
and assets, said that h. had no figures TO give
out nad that II would be a matter OF several
days before he and his colleague would be pre-
pared e. make public the couiit on Of tho firms
finances. Mr. Balls Office is on state street
aud he shares his offices with Horace II.
stevans. who succeeded Charles II. Cole as
president Of the GlopG Bank. which held paper
OF the Lowell COMPANY TO the extent OF hum
drsds OF thousands Of dollars The other as
egnee is also u lawyer and has an office with
Ioug q H,ncnway in the fremont building.
A news bureau said this afternoon. before the
failure:
'Globs Bank facts are coming out pieoemeal.
We'll INFORMED people have known all along
Syas e0n aors than ns fs5S fT S:
gone into this concern. II has not assigned be-
s.Sse II nov No. has no 9th credit than the
turned over everything to the yGiS6s Bank
| which 10 now lquidating the Lowell Arms
| The discovery OF the condition OF Affairs at
bank exam iner after passing the Globe Banks
ten Of s250.O0o due from the Globe Bank.
9re H item on the dsSs sds o. Is:
Globe bank: 50 he went bach for an explains
Among the ,rst results Of this discovery
was the loyal rally Of ali Nj, Coles associates
,hst his asss s,Sse snS S was clean breast q
everything. and hi. family aud friends stEippsd
turned over all Big, property to the bank and
hi son; Charles 4 cG,e Jr; gaze aye, up y. every.
son,FisS,on Amounted ; TO prpperty a and sesar
ties OF a then market value OF 100000.
VIII T az" eas 9G0H Utica w st., wsr :sS
| the so-calied United States Oil stocks, and Mr..
Blgelox who had the iarsest indiyidpai inter.
| that Mr. toe confessed was made good. The
bank was then considered by its directors as
TdSng as , eoaId % asked with tho entire de-
Later Mr.. C2e eoptessed that he had not told
again face / the situation. Mr. Biaeiow Parted
| with Boston and Montana at a great sacrifice.
s%S Msr' wh NJ fnf Rssox Ss
guaranty in cash, Messrs Clark and Coolidge.
= an e4deayor to hold their position and keep
United states mining with disastrous results
! TO themselves and all their associates. In OK
| tcnuatiJn Oi their position and failure to keep
some Of their PROMISES 1t should be said that
the whole truth has not yet been told. but an
|
| 1t has been charged that cash orders were
| given for the purchase OF securities and that
| the q "A was not forthcoming The fact. how
ever . not likewise given publicity. that Ger.
tain other securities were sold. Likewise for
cash. and the brokers kept the cash. claiming
| that such action was necessary for the protec-
ton Of the United states Mining accounts.
The mystery Of tho whole situation In the rea.
sou for Pres lent Cole sacrificing his personal
fortune and the existence Of the bank for the
| Lowell hrGs Company"
A despatch from Los Angeles says that Cole
will remain in tnat city uatil the complaint 10
received from Boston anal the warrant for his
arrest 10 served. Assistant. District Attorney
casey, who APPEARED Tor the Governs
nent In a case OF alleged violation OF the bank
rnpicy, law this morning explained that his
orlce has had 20 much To- do with the arrest OF
Co'e that II has been unable To prepare for the
90 80 and Il was accordingly post poned.
TO- pight said: There are two. com.
panies eoncogned. the John p. Lowell Arms
Company and tho John p, lowell Com:
places from Providence Il. G. to Baneor. Nc.
10th o. hes" concerns made assign msnt 70
the same assignees in each case and as the
stocks are large they must be examined
thoroughly before We know what the financial
situation