The Washington times., 1901-12-02
NEW YORK BANKS
HURT BY FAILURE.
AID In FINANCING BIG CONCERNS.
Troubles of the Hartman Mnnufac-
turing Company Revsved-Some
of the Losses Quite Heavy
Investigation in Progress.

NEW YORK, Dec. i.-Despite all eff
forts to keep the facts from the public, it
has been learned that several leading New
York banks have suffered from the inan-
cial troubles of the Hartman Manufactur-
ing Company, which has just gone into
the hands OF a receiver.
The ambition of two young New York
ers to finance the concern on a hcge scale
with borrowed capital is said to have
brought on the collapse. half dozen
lawyers and capitalists representing the
New York banks are now in Pittsburg in
yestigating the affairs of the company.
and particuler.s- its history in the last
few months.
The Bank of the State of New York is
chiefly responsible for the receivership.
Its S25, GOO loan TO the company fell due
November IS. and was not paid 1t was
only one Of several banks which fur
nished the money to float the company
on the big scale planned by the two am
bilious young promoters.
Some of the Losses.
Other banks in the city which are said
to have loaned money to the company
are:
First National Bank, S100, 900.
Hanover National Bank. about $5O,O00.
City National Bank. about $4,000.
Other banks here, in Pittsburg, AMI in
Ohio are among the list Of creditors, y no
altogether represent an Indebtedness j.
is said, OF ever Se00,o00. The Hartman
Company is steel ana wire concern
The two promoters who expected 10 de-
velop great company out of the Hart
man concern are William J. Kiefer. for
merry a lawyer OF this city and f. A.
Ulmstead formerly hardware salesman
also of this city. They bought out the
company in March last Up 10 that time
its capital stock had been s25O.00O. They
came back to New York with letters of
Introduction to Elyerton R. Chapman, a
broker at 50 Broadway. Chapman was
formerly with Moore d SchIey, and is
well known on account Of his connection
with the Sugar Trust. They told Chap
man they wanted a loan of SI25. 900 to fin-
ish payment on their purchase of the
Hartman concern. Chapman thought il a
good loan and SO told the directors of the
City Trust Company, Of whom he Is one
He told them that IL they would make
the loan he would guarantee II and take
the bonus or they might make it and take
the bonus themselves. The latter propo-
sition was accepted and the loan was
made.
Steps Taken in Court.
Mr.. Chapman and Stuart II. Patterson
weil-known accountant, wen: to Pitts
burg few nights ago for the various
banks in this city. and as result Of their
visit Judge u. W. Acheson, Of the United
states-cireuit Court, appointed the Union
Trust Company receiver for the concern.
The notes held by the other banks of
this city have not yet matured. Lawyers
representing the creditors OF the concern
In this city went TO Pittsburg yesterday
TO make full investigation. 1t is said that
several of the banks are well secured both
by endorsement and with collateral
Mr.. Chapman, who has made an inyes-
tigation of the affairs, says there is
nothing wrong with the company, hut that
the plan for development that the pro-
moters had in mind has not succeeded.