Show FINANCIAL WRECKS A Bad Showing Made by the Ferry Brothers in Connection With Their Failure Detroit Mich Feb l2The Ferry Brothers financial disaster stirs more and more excitement as the facts are developed The following I lowing is a summary of them so far as they have come to the surface in respect to the transactions mentioned men-tioned In November 1877 Senator Sena-tor Thomas W Ferry approached his old friend exSenator H P Baldwin asking financial accommodation accom-modation He assured Mr Baldwin Bald-win that the firm of ferry Bro of which he was a member was worth at the time 1000000 3nd that he wanted to open a running account with the Second national Bank of which Mr Baldwin is president His proposition was to give Mr Baldwin a deed or deeds of trust on property located in Cook County Illinois and Grand Haven Michigan for S250CO Mr Baldwin Bald-win in consideration of the same to guarantee his account at the Second National Bank When the mortgages were drawn he assured Mr Baldwin that they were not really necessary to secure him as he Ferry was rolling in wealth and asked as a favor thdt they be not placed on record as the general knowledge of their existence might impair their credit and embarrass the vast operations of Ferry Brother The senator went on to assure Mr Baldwin that he could hold the deeds and that at any time there was a shadow of doubt as to the absolute solvency of the firm or any possible chance of the Second National Banks claim being imperiled he should have prompt notice so that he could place his deeds on record The Second National Nation-al guaranteed by Mr Baldwin Bald-win under this arrangement allowed allow-ed Ferry Brother to draw funds amounting in the aggregate to 531 000 which they still owe When the report became authenticated that Ferry Brother were in a tottering condition Mr Baldwin satisfied himself that the firm was helplessly involved and thought it about time to place his deeds on record in Chicago and Grand Haven On Friday Mr Baldwin mailed his deed to Chicago to be placed on record but to his astonishment and that of the bank officials word was received that there was a deed of record to Cutler White ahead of Baldwins for the identical prop erty deeded to him as security Baldwins deed was dated November Novem-ber 17 1877 and Cutler Whites December 27 1882 The Grand Haven property was likewise trans ferred on the quiet Ferrys transactions tran-sactions with the First National Bank were not as brazen as with Mr Baldwin but in the light of his recent transfer of his propertywere equally deliberate Senator Ferry or Ferry Brother never had an account at this bank said President Wendell and whatever accommodation I commodation he received was somewhat on account of his position as United States senator his prominence in Michigan affairs the general belief in his wealthand his own assurance that he was rich The First National Bank holds 10500 of Ferrys paper and in proof that it was altogether a personal accommodation to Senator Ferry President Wendell cites the fact that when the paper two notes was presented bearing the indorsement of Ferry Bro he insisted upon having it changed sos so-s to substitute the single endorsement endorse-ment of Thomas W Ferry One of these notes is overdue and protested pro-tested the other is not yet duo There is still more of the Ferry paper held directly by the Detioit banks than is mentioned above The indebtedness of the firm thus far known to the Detroit banks is in round numbers as follows Grand Haven 90000 Albany 80000 Grand Rapids 850090 Boston 25000 Philadelphia S25 000 These sums with the obliga tions here foot up 310000 but it is estimated that there are outlying liabilities that will swell this to fully 500000 It will be observed that round sums have been raised in Boston Philadelphia and elsewhere and an astute capitalist says there Is no doubt that Senator Ferrys political reputation was the principal collateral collat-eral used there Mr Baldwin said this morning It is a subject that ordinary language cannot do justice jus-tice to He did not want to taik through the papers but would cork up what he had to say for Senator Ferrya special benefit when he met him face to face E P Ferry brother of the senator sena-tor said to The Tinles reporter today to-day that he was not at all discouraged discour-aged and that the firms in whioh he and his brother are interested are by no means in a hopeless condition All that is necessary he declares is a little forbearance ou the part of creditors and every dollar that the Ferry brothers owe I or that is owed by any firm lnwhic h they are concerned will be paid He also adds < Iknow of no bank in this state or in Chicago that is I not fully secured Edward P Ferry has also given a trust mortgage mort-gage to James M Barnett of Grand Rapids covering property to the value of 100000 His total indebtedness indebt-edness Is 11344235 according to a statement made here today by him He proposes to pay the debt in three annual installments The creditors named in that statement are as fol lows Home National Bank of East Saginaw 2857431 First National bank of GreenvilleSE000 First National bank of Allegan 5250 First National of Dotroit 10500 Second National of Detroit 31 36775 Union National of Chicago 11750 McCornick Co Salt Lake City 86000Special dispatch dis-patch in the Chicago Times |