New-York tribune., 1901-03-07
THE SEARLES FAILURE
BANKS WILL LOSE SCARCELY ANYTHING
THROUGH THE ASSIGNMENT-THE
IMMEDIATE CAUSE.

The financial troubles of John E. Searles were the
topic of conversation in Wall Street yesterday. but
not the subject of concern for he has not figured
of late in the stock market, and his credit has
Gently been so generally understood to be i'm
paired that the local banks as far as can be
learned will lose scarcely anything through his
assignment II believed yesterday that Mr.
Searles's liabilities would reach about si.5O0OOO
1t reported that this amount was nearly
cred by his assets, which consist mainly of
listed securities readily marketable.
The schedule of liabilities is being pre-
pared under the direction of Charles F. Hughes
law partner of Edward F, Dwight, the assignee.
Mr. Dwight said yesterday that the work of
strengthening out Mr.. Searles's affairs pro-
ceeding rapidly possible. Until we have
finished the schedule" he added. Il cannot speak
about the failure
report current yesterday that Mr., Searles
at the present time had accounts with four
tiona banks in this city. That he had an account
with the Western National Bank. which men
toned one of the four. denied yesterday
good authority Robert NJ Galloway. president of
the Merchants National Bank. also denied that Mr..
Searles was depostor at the latter bank At the
National Bank of North America II said that
Mr. Searles not depostor there. II In
timated however. that the bank held his paper
for small amount. 1t is understood that Mr..
Searles was interested IN many enterprises In the
Southern States, and that Southern banks will be
among the principal sufferers from his failure. A
bank officer said Yesterday that drafts on New
York banks from the South for collection against
Mr.. Seares's account recently protested The
amount of these drafts is unknown
The assignment was precipita ted by proceedings
instituted late Tuesday afternoon in the United
States Circuit Court in Brooklyn to the
principal and interest on four overdue and unpaid
notes aggregating s7he0. The papers fled by
William w Cook lawyer. of No. a WaII-st. Mr.
Cook said yesterday that there had been secrecy
about the legal formaIities taken to recover the
he led
with the clerk of the Circuit Court.
Judgment taken by default in each case. no
appearance being made on behalf of Mr.. Searles
The notes were given by the Duluth Furnace Com
pany, of Duluth, Mimi. on July 12 1900 The judg-
ments were follows;
BY the First National Bank Of Duluth Mimi, for
10000. on note and costs and interest amounting
10 S7s5 ss; by the Western National Bank of War
ren. Ohio. for $1,000 a and 500 ss interest
and costs; by the American Exchange Bank Of
Duluth. for $4,000 and s7s6 IS interest and
costs; by Thomas Z. Thomas of Warren. Ohio.
for $4,000 on and S7S5 IS interest and costs
Circulation was given yesterday 10 the rGmor
that prominent trust company of New-York had
made large loans Mr. SearIes within the last two
years. but officer Of the company denied the
story.
Not long age. IL Is said, Mr. Seares told hank
president from whom he seeking a loan that
If time enough were given him he could settle his
obligations tn full and show between g 9oo eo and
sive resources mentioning Montana copper mine
which he owned. which he said worth S6l0ot0.
He also admitted. according 10 the story, that he
had been injudiciOus in embarkng many and
scattered experimental enterprises.
The SearleS assignment recalls the incidents
which in 1898 led 10 the resignation OF William J.
Qunlan. jr from the post OF cashier OF the Chemi-
cal National Bank The latter advanced hank
funds the amount OF S3a3.Oo0 TO Francis Cato
Cradle and John 5. Silver on wildcat paper. Cir
culars which Cradle issued stated that Mr. SeaTles
promised to build smelter at Edgemont Penn
This statement. It was said. was never denied oy
Mr. Searles.
II is said in Wall Street that Mr.. Searles several
years ago lost $4,000 by sudden and sharp de-
cline in the market price of American Sugar Re
fnIng Company stock Later he beyame inter-
ested In a variety Of enterprises, some good and
some unprofta be and II has been understood that
IL was his branching out into many nsldS that
was the real cause of his retirement from the
management of the sugar company ana the presl-
deney OF the Western National Bank
Mr.. Searlss is no longer a director in the Equi-
table Life Assurance Society of the United States.
IN was learned yesterday afternoon that several
weeks ago he resigned that Office. Whether or not
he resigned OF his own Totion could not oe aScer-
IainHl