New-York tribune., 1910-02-26
SOARING & co. FAIL
TWO R4ILROADS GO
DOUN IN SMASH.
Loscyer Says Money Of Depos-
itors Went Into Dclazrare
and Eastern.


District Court against Frederick F. Scar
ing and Harry NJ. George. composing the
banking firm of Soaring & Co. No. Z
Wall street. and Judge Holt appointed
John S. Sheppard, jr., of No. "a Liberty
street, as receiver
Later in the day A NJ. Moreland and
W. B. Trowbridge were appointed by
Judge Hough, of the United States DIS
trict Court, as receivers of the Delaware
& Eastern Railway Company. Of which
Soaring & Co. were the bankers, and the
Delaware & Eastern Railroad Company
of both of which corporations Frederick,
+. Soaring is president
The petitioning creditors in the case
of Soaring & Co. were the Delaware MIX
Company. William P. Chapman and Ed
win D. Harrington. whose claims asgre-
gate 1928 %. Sor money advanced ana
balance on money deposited. The mix
company's claim is for $5.219 SO.
Admission of insolvency and willing
ness on the part of the firm to be ad-
judged bankruots are alleged in the
petition David H. Bilder, of No. 1913
Broadway, counsel for Soaring & Co,
said that the firm claimed 10 be fully
solvent The assets. he continued, would
approximate 100000. and the abilities,
roughly estimated, about $35o,0oo.
LAWYER EXPLAINS.
In explanation of the causes OF the
failure Mr.. Bilder said:
This firm was also engaged in bullu-
irg the Delaware G. Eastern Railway
across the centre of New York State, and
was interested in financing the road
The depositors a the branches of Scar
ing &, Co. number many hundreds.
"A certain attachment brought against
the firm recently had such wide publicity
that many depositors became alarmed
and demanded their money. By reason
of this publicity the firms credit also
was shaken. with the result that the firm
determined it to be for the best interests
Of all their creditors and to protect all
concerned to suspend.
James N Rosenberg of James, Schel
& Elkus, attorneys for the receiver
Cf Soaring & Co, said that the liablll-
ties of the firm were between S4U,UD
and S5O0,G00, with nominal assets of
100000. The latter, he said. consisted
principally of securities of the Delaware
& Eastern What the actual value of
these securities was he was not pre-
pared to state, but he remarked that he
wouIa not look askance at an offer of
$4,000 for the lot.
WHERE DEPOSITS WENT.
The firm had about one thousand Gus
the examination that had been made of
the books it was his impression that
the bulk of their deposits had gone into
the Delaware & Eastern. Expert ac-
countants were at work on the books OF
the firm, he added, and it was hoped to
have a more complete statement of its
condition within a day or two.
The bankruptcy proceedings against
the firm. according TO Mr., Rosenberg.
were precipita ted by the attachment OBJ
tained last week against the two part
ners by s Ormand Goldan IN an action
10 recover $500 commission. alleged
to be due for placing S3,a0,OO0 Della
ware G, Eastern bonds in London last
july. and also to the fact that a suit
against Mr. Soaring and others to re-
cover S:O0O00 in connection with the
of the Passaic Steel Com
many. of which Mr. Soaring was for
nerlv secretary. was now being heard
before Vice-Chancellor Howell, of New
ark
The Mr. Goldan referred to as haV-
ing obtained ar attachment against
Soaring & Co. is a brother-in-law of
Frederick T Tagliavia. who acted as
agent for the firm in placing the So
200 900 bond issue abroad. He agreed to
take his commission in bonds, but had a
with the promoters as to
nayment and assigned his claim to
Goldan, who applied for an order of at
tachment against Messrs. Soaring and
George for the amount of the commits
sion, on the ground that they were nom
resiC
HELD SMALL SAVINGS.
Soaring & Co. have branch Offices at
Third and Wendover avenues. No. 2O1o
Boston Road and Eighth avenue and
139th street The deposits in the Wall
c, rect office are estimated at 100000 and
il. the uptown branches at $Io,Vo Many
of the uptown depositors. the majority
of whom are small tradesmen and people
OF moderate means, to whom the 41s per
cent interest allowed on deposits was
strong inducement, were visitors yester-
dav at the office of Lindsay Russell. the
attorney who filed the petition in bank
ruptcy.
Among them vas widow who had
a bank balance of $3.50
rarity on loans from relatives. and who
had planned to withdraw her money
when il should amount to $1,000. with
,cbich sum she intended to buy small
store Another of the Gisconsolate de-
rnsitors was a groCers clerk, whose saw
ines of fifteen years. amounting to $3.50.
were on deposit in one of the Soaring
branch Offices
Messrs Moreland and Trowbridge we're
anrointed receivers for the Delaware &
Eastern Railroad Company upon the ap-
nIication of Joseph H Holmes. judg
mont creditor. through his attorneys.
lanes, ScheIl & Elkus the appointment
having been made upon the consent of
Ex-Governor John ". Griggs and +. J.
Nyelch. counsel for the railroad The
delaware & Eastern Railway Company
,,as placed in the hands of the same re-
cAivers upon the application of Maurice
, xra;rer the holder of an Overdue note