The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1901-03-07
CAUSE OF SEARLES FAILURE


Continued from First Page)
Searles could not arrange the loans nee
essary to carry him along at this time
was because all his choice collateral
such as the stock of the American cot
ton company, of which he was presi-
dent, and the American Surety COM
pany, of which he was director, was
already pledged, and bankers refused to
lend on such securities as we're left on
his hands.
To one bank president to whom he
applied for a loan a week or two ago.
Mr.. Searles represented that il he could
only get time with credit he could set
tie his obligations In full and show ST.
100000 and $SOO0,0oO worth Of property
remaining to his credit. He confessed
that he had been injudicious in embark
ing on so many and SO scattered enter
prises. AS an illustration of his extern
sive resources he mentioned Montana
copper mine which he owned and which
he said was worth 100000.
Mr.. Searles resigned his position as
director of the Western National bank
in January. President Valentine P.
Snyder, of that institution. said to- day
| that Mr. Searles owed not a penny to
| the bank.
| Mr.. Searles resigned about six weeks
| ago from the directorate of the trust
| company in Baltimore, in which he had
| been interested, and before applying for
receiver he placed in the hands of the
American Cotton directors his resigna-
| tion AS president of that company. His
| 70 i1fyrn will he, on 80
these corporations
President William III. Kimball, of the
Seventh National bank, emphatcally
denies report in Wall street that Mr.
Searles was in debt to that institution.
HE has never borrowed a dollar from
us" said Mr.. Kimball.
President Robert M Galloway, of the
Merchants National bank, made a sim
liar denial.
None OF the numerous small corpora
tons with which Mr.. Searles name has
been associated, is involved in any way
with his failure. The general opinion
of bankers is that all his obligations
will be met in full if sufficient time is
given the assignee to straighten out his
affairs. The sacrifice of his property at
u,
tend to reduce the proceeds.
Outside OF banking circles less SAN
guine views Of Mr.. Searle e. resources
are held. 1t is said that he has lost
large amounts in sugar and other spec
ulations. His first serious loss was
$40oo on Sugar in 1898, when the stock
went down to par, and this was the
cause of his retirement from the presi-
dency of the Western National bank.
While considerable amounts have
been lent to Mr.. Searles by local insti-
tutions, the heaviest losses will fall. II
is said, upon banks located in the south.
The New. York Post last night said:
since John IL. Searles retired from the
sugar Trust and Western National bank d.
recorates ana began promoting a number Of
obscure and new business schemes, no one
versed in Wall street affairs would have
been been surprised to hear that the weight and
rlcd him down. Therefore the news today
that Mr., Seares had made an assignment
created no sensation, especially as it was
also announced that the assets were many
bilities are perhaps .s1,5oo0Oo, and the as
sets may In time realize more than that.
1t was learned this afternoon that Mr..
Equitable Life Assurance society, and that
he Is not now connected with the company
in any capacity. An officer OF the com.
PhSny 2dmtted that this was the case and
ceived only few weeks ago.
An effort was made "on the curbv IN. |
day, presumably on behalf OF Mr.. searles.
to market some of the minor securities in |
which ne Is interested. The effort was not |
successful.
Bankers said freely that Mr.. Searles went
among the banks yesterday seeking accom-
mediation. One well known bank officer |
who was applied to said that he refused to
loan because he did not care to let Mr. !
searles have the money under the circum-
although he knew nothing Of the /
crisis that his affairs had reached: Mr..
appearing at all Disconnected
At the Western National bank it was said |
that Mr.. Searles bad at present no connec- |
ton whatever with the institution. He re-
that time. while occasionally visiting the
bank, had nothing to do with its affairs
President Synder OF the bank declared that
the institution held none OF Mr. Scarles'
paper.
In other banking quarters it was learned
that Mr. Searles had received no general
from local institutions ono
bank which admitted to-day having little
Of Mr.. Searles' paper, said it was secured
by good collateral, so no loss would be in.
cured. Asked to specify the securities on
which the loan was based the president
said that portion were what wer common
y Known as HlRnClaSS, while the rest
lot above the average, perhaps below the
All the large down town banks denied
holding Mr. Searles' personal accounts. al
hough several admitted relations with some
# the corporations with whose mana cement
lie had been Identified. Some out OF town
,anks, 1t was learned, had connection with
Mr.. senrles affairs, and might hold some
# his paper. But 1t was stated in banking
quarters that Mr.. Searles' Affairs had nof
)een In such shape as to Justify. In the |
opinion Of well known credit experts. ony
extended accommodation by New York .
,anks.
well known trust company was mem
Toned this afternoon as having extended nc
to Mr. Searles In some OF bjs ,
BUSINESS ventures. The paper, 1t was said.
anne to the company from another concern
hat was amagamated with 1t some time
go. But an officer Of the company denied
that Mr.. Searles owed them n Z
ollar, although a man connected with tho !
In confidential capacity init
mated that the company at one time han =
calings with Mr. Seares or with his SON
n-law, and that it still had some of his I
amer.
Some southern banks it was said will I
ave occasion to remember Mr. SearIes. on
ccount of considerable dealings within
he last year or SO. Baltimore. 1t was said
I