19042. Finance Company (Philadelphia, PA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
November 20, 1890
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
d0d64f18

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected

Description

Multiple articles (dated 1890-11-21) report that following the suspension/failure of Barker Bros. & Co. (Nov 20, 1890) the Finance Company of Pennsylvania made preparations for an anticipated run; checks were presented but all drafts were met, the company was described as solvent and a syndicate offered support. The bank did not suspend in these reports and operations continued, so classified as run_only. Corrected bank name to full form Finance Company of Pennsylvania as used in the articles.

Events (1)
1. November 20, 1890 Run
Cause
Local Banks
Cause Details
The failure/suspension of Barker Bros. & Co. (a prominent Philadelphia brokerage) prompted depositors to present checks and draw accounts at the Finance Company.
Measures
Promptly met all drafts; treasurer publicly assured depositors of solvency; directors reorganized leadership; syndicate (Drexel & Co., Brown Bros., Provident Life & Trust, Pennsylvania Co.) formed to advance funds if needed.
Newspaper Excerpt
At the Finance company's office immediate preparations were made for an anticipated run on its deposits ... A number of checks were presented during the last hour of the day's business and some accounts drawn out. All drafts were promptly met, and Treasurer Stern assured ... that the company was entirely solvent.
Source
newspapers

Newspaper Articles (7)
1. November 21, 1890 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 21, 1890

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Article Text

The Barker Bros. & Co. Failure-Well Known Financiers. PHILADELPHIA. Nov. 20.-Abraham Barker, founder of Barker Broe. & Co., bankere and brokers, who failed today, was one of the best financiers in the country and was formerly president of the Stock Exchrage. Wharton Barker. another member of the firm said this afternoon: "The assignment was unavoidable, as the people who owed us money. upon whom we depended, did not pay us. Of course the condition of the money market has much to do with the trouble. The step was necessary for the protection of our customers." The first matter which brought the house prominently before the general public was the announcement in 1877-78 that they had become financial agents for the Russian government in the United States. This mission was at that time highly important in view of a war between England and Russia, which then seemed imminent. In carrying out the instructions of the Russian government, Barker Bros. & Co. procured four ships of war, suitable ordinance, and completely armed and equipped them. The total expenditure amounted to several millions dollars the whole transaction was consumated to the utmost satisfaction of Russia. Wharton Barker, president of the finance company in Pennsylvania, was director of a finance company in Philadelphia, of which he was formerly vice president. At the finance company preparations were made for an anticipated run on deposits and a number of checks presented during the last hour of the day's business and some accounts drawn out. All drafts were promptly met, and Treasurer Stearns assured a number of persons who had an account there, that the company was entirely sol vent, and would pay everything presented in form of check or other demands. Failure Barker Bros. & Co., was caused largely by various unprofitable investments. They were identified with a number of railroad schemes which prudent financiers and capitalists avoided when the money stringency came found it impossible to realize upon them. A syndicate consisting of Drexel & Co., Brown Bros, & Co., Provident and Trust Co. and Pennsylvania Co. for the insurance of lives and granting of annuities has been formed for the purpose of advancing to the finance in the State of Pennsylvania any amount of money that may be necessary to meet outetanding liabilities. It is asserted that the company is certainly solvent and with the assistance of the syndicate will be able to tide over the crisis in its affairs caused by the failure of Barker.

2. November 21, 1890 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, November 21, 1890

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A FAILURE IN PHILADELPHIA. Barker Brothers & Co., Stock-Brokers, Go by the Board. (By telegraph to the Dispatch.1 PHILADELPHIA, PA., November 20.The failure of Barker Brothers & Co., bankers and brokers, was announced on the Stock Exchange this afternoon. The firm is composed of Abraham and Wharton Barker, The firm at 1 o'clock stopped receiving deposits at their offices at Fourth and Chestnut streets, and at 1:15 o'elock the doors were closed. The members of the firm refused to make any explanation of their troubles. The firm has of late been doing very little business through the Stock Exchange. An assignment has been made to Edward Mellar, who is a son-in-law of Wharton Barker. UNPROFITABLIE RAILROAD INVESTMENTS, The failure has been caused largely by various unprofitable railroad investments. Barker Brothers & Co, were identified with a number of railroad schemes which prudent financiers and capitalists avoided, and when the money stringency came they found it impossible to realize upon them. Among the railroad securities with which the firm were identified in recent years were Ohio and Northwestern Oregon Pacific, San Antonio and Aransas Pass, and Charleston, Cincinnati and Chicago-all of which have drawn heavily upon the resources of the Barkers. Wharton Barker was president of the Finance Company of Pennsylvania, and was a director of the Investment Company of Philadelphia, of which latter company he was formerly vice-president. Just before the Barkers' suspension was announced today meetings of the directors of these companies were called, apparently with haste. Whataction was taken by the directory of either of the two corporations is kept inviolably secret. PREPARATIONS FOR A RUN, At the Finance Company's office immediate preparations were made for an anticipated run on its deposits, and subsequent developments showed that the precaution was well taken. A number of checks were presented during the last hour of the day's business and some accounts drawn out. All drafts made upon it were promptly met, and Treasurer Stern assured a number of persons who had accounts there that the company was entirely solvent, and would pay everything presented in the form of a check or other demand. In the office of the company after 3 o'clock Charlemagne Tower, Jr., vice-president of the company, said that the Finance Company was under no stress ; that it could pay every obligation against it. and that the meeting of the directors had no reference to the Barker failure. At the Investment Company's, President Hoyt said that no action was taken at the meeting of directors that could interest the public in any way, and that it had no reference to the Barker failure.

3. November 21, 1890 Evening Journal Wilmington, DE
Article from Evening Journal, November 21, 1890

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namely, the In WHARTON BARKER. vestment com pany. The Investment Company of Philadelphia started three years ago with cap ital of $2,000,000, which was made $4,000, 000 eighteen months ago. The main function has been the promotion of new undertakings of promise, and the capital mostly locked up in such enterprises. At this time, if forced to liquidation, these ventures would necessarily be sacrificed and the Investment company's capital consequently impaired. Not a Great Surprise. If carried the several undertakings will, as reasonably anticipated, make good returns in course of time. The Investment company has very little impending indebtedness. The stockholders are the main creditors, and these are strong men, who have agreed to suspend dividends for three years. To many the suspension of the old and famous brokerage house was not a surprise, as the firm's credit has been affected for the past two months. A Correspondent of the Barings. The house is the Philadelphia correspondent of Baring Bros. The firm consists of Wharton Barker and Abram Barker. Wharton Barker is president of the Finance Company of Pennsylvania. The firm also controls the Wharton Switch company, whose works are at Jenkintown, Pa. It gained a world wide reputation some time ago byits Chinese inter-telegraphing banking scheme. It was also associated with the great Reading pool. In the iron trade the failure is considered of slight importance to iron interests. Mr. Wharton Barker is largely interested in the Bethlehem Iron works and other concerns, but has no controlling interest in any of them President Barker Resigned. The directors of the Finance company held a special meeting. The resignation of Wharton Parker, as president, was presented and accepted. Charlemagne Tower, Jr., vice president, was elected president, and Philip C. Garrett, vice president. A syndicate, comprising Drexel & Co., Brown Bros. & Co., the Provident Life and Trust company and the Pennsylvania Company for the Insurance of Lives and Granting of Annuities has been formed for the purpose of advancing to the Finance Company of Pennsylvania any amount of money neces sary to meet its outstanding liabilities. The Company Declared Solvent. It is said that the company is certainly solvent and with the assistance of the syndicate will be able to tide over the crisis in its affairs caused by the failure of Wharton Barker. The Finance company is one of the newly created trust companies and had paid up capital of $5,000,000. It has deposits amounting to only $150,000, due mostly to stockholders. Its creditors are said to be chiefly banks, holding the company's notes, amply protected by collateral. The business of the company has been mainly the acquirement of real estate in Philadelphia for the Reading Terminal railroad and the floating of railroad securities. . Abraham Barker's Grief. Much sympathy is expressed for Abraham Barker, the venerable head of the firm, and many well known men in all kinds of business called on him to assure him of their sympathy and esteem. Mr. Barker was very much affected. He said he thought it very hard after a business career of fifty-three years to be thus overwhelmed by a financial cyclone. "During the past few days he said he had devoted all his time and financial ability to raising money for the help of others, and when his own time of need came those who were indebted to the house failed to meet their obligations and suspension became inevitable. From $6,000,000 to $15,000,000. The firm has not yet prepared any statement of liabilities and assets. The liabilities are variously estimated from $6,000,000 to $15,000,000. Wharton Barker has assured some of his friends that their assets exceed their liabilities by over $1,000,000. Their Work for Russia. In 1868 Wharton Barker became a member of the firm. The first matter which brought the house prominently before the general public was the announcement, in 1877-8, that they had become the financial agents of the Russian government in the United States. This mission was, at that time, a highly important one, in view of war between England and Russia, which then seemed imminent. In carrying out the instructions of the Russian government Barker Bros. & Co. procured four ships of war, suitable ordnance, and completely armed and equipped them. The total expenditure was several millions of dollars, and the whole transaction was consummated to the utmost satisfaction of Russia. The Big Chinese Scheme. Early in the summer of 1887 it was reported that concessions on an enormous scale had been secured from the Chinese government by a Philadelphia syndicate, of which Mr. Wharton Barker was the head. Count Eugene de Mitkiewicz had been to China and had secured the concessions. They provided for the establishment in China of a Chinese-American bank, with capital of 25,000,000 Shanghai taels, with power to increase the capital eventually to 50,000,000 taels. The bank was to have the privilege of coining and issuing gold and silver money and paper, and also to build railroads and equip telegraph and telepbone lines. A special Chinese envoy, Mr. S. P. Ma

4. November 21, 1890 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, November 21, 1890

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FAILED FOR THREE MILLIONS. Financial Smash at Philadelphia of Barker Bros. & Co. Philadelphia, Nov. WL-Barker Bros, & Co., bankers and brokers, of this city, announced their suspension on the Stock exchange yesterday morning. The failure affected prices in New York, which were firmer at the commencement of trading, owing to favorable foreign advices. Barker & Co.'s liabilities are estimated at $3,000,000. The suspension was not much of a surprise to the well-informed, as the firm's credit has been poor for the past two months. The creditors are not numerous. The firm is said to have an interest in the stock market, and failed because of their inability to realize on outstanding securities. Two Other Institutions Interested. Wharton Barker was president of the Finance Company of Pennsylvania, and was a director of the Investment Company of Philadelphia. Just before the suspension of Barker Bros. & Co. wasannounced meetings of the directors of these companies were called in haste. The proceedings of the meetings were kept secret. At the Finance company preparations were made for a run on its deposits, and subsequent events showed that the precaution was well taken. A number of checks were presented during the last hour of the day's business and some accounts drawn out. All drafts upon it were promptly met. Treasurer Stern says the company is entirely solvent. Wharton Barker Resigns. It is learned that at the meeting of the Finance company yesterday the resignation of Wharton Barker as president was presented and accepted. Charlemagne Tower, Jr., vice president, was elected president, and Philip C. Garrett vice president. A syndicate comprising Drexel & Co., Brown Bros. & Co., the Provident Life and Trust company, and the Pennsylvania company, for the Insurance of Lives and Granting of Annuities, has been formed for the purpose of advancing to the Finance company of Pennsylvania any amount of money necessary to meet its outstanding liabilities.

5. November 21, 1890 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, November 21, 1890

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Barker Resigns One Office. Philadelphia, Nov. 20.-At the special meeting of the directors of the Finance Company, of Pennsylvania, the resignation of Wharton Baker, as president, was received and accepted. Vice-President Charlemagne Tower, Jr., was elected president, and Director Philip C. Garrett was chosen vicepresident. A committee of three directors was selected to act as advisers to the president for the present. A syndicate, consisting of Drexel & Co., Brown Bros. & Co., the Provident Life and Trust Company, and the Pennsylvania Company, for the insurance of lives and the granting of annuities, has been formed for the purpose of advancing to the Finance Company of Pennsylvania any amount of money that may be necessary to meet its outstanding liabilities. It is asserted that the company is certainly solvent, and with the assistance of the syndicate will be able to tide over the crisis in its affairs caused by the failure of its president, Wharton Barker. The Finance Company of Pennsylvania is one of the newly ereated investment trust companies, and had a paid-up capital of $5,000,000. It has deposits amounting to only $150,000, due mostly to stockholders. Its creditors are said to be chiefly banks holding the company's notes, amply protected by collateral. The business of the company has been mainly the acquirement of real estate in Philadelphia for the Reading Terminal railroad, and the floating of railway securities and similar investments. When the suspension became known there was among business men a universal expression of regret and of sympathy with Abraham Barker, the venerable head of the firm. Mr. Barker is a general favorite in financial circles, and many bankers, brokers, merchants and men in various lines of business called on him to assure him of their sympathy and esteem. Mr. Barker was very much affected, and he showed by his evidently suppressed excitement that he felt keenly the failure of the house. He said he thought it very hard after a business career of fifty-three years to be thus overwhelmed by a financial cyclone. During the past few days he said.he had devoted all of his time and financial ability to raising money for the help of others, and when his own time of need came those who were indebted to the house had failed to meet their obligations and suspension became inevitable.

6. November 21, 1890 Evening Star Washington, DC
Article from Evening Star, November 21, 1890

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THE BARKER FAILURE. The Assignment Necessary to Protect the Customers of the House. Mr. Wharton Barker of Barker Bros. & Co. of Philadelphia, who assigned yesterday. said in the afternoon regarding it: "The assignment is unavoidable. We hoped to be able to avoid it, but it was impossible. People who owed us money and on whom we depended did not pay us. We expected that they would do so, but they failed to meet their engagements, and now we have failed to meet ours. That is all that can be said now. Of course, the condition of the money market has much to do with the trouble. The step was necessary for the protection of our customers." Wharton Barker was president of the Finance Company of Pennsylvania and was a director of the Investment Company of Philadelphia, of which latter Company he was formerly vice president. Just before the suspension was announced meetings of the directors of these companies were called, apparently with haste. At the Finance company immediate preparations were made for an anticipated run on its deposits. All drafts made upon it were promptly met, and Treasurer Stern assured a number of persons who had accounts there that the company was entirely solvent and would pay everything presented in the form of a check or other demand. Charlemagne Tower. jr., the vice president of the company, said that the Finance Company was under no stress; that it could pay every obligation against it, and that the meeting of the directors had no reference to the Barker failure. The resignation of Wharton Baker as president was received and accepted. Vice President Tower was elected president, and Director Philip C. Garrett was chosen vice president. A committee of three directors was selected to act as advisers to the president for the present. A syndicate, consisting of Drexel & Co., Brown Bros. & Co., the Provident Life and Trust Company and the Pennsylvania Company for the Insurance of Lives and the Granting of Annuities, has been formed for the purpose of advancing to the Finance Company of Pennsylvania any amount of money that may be necessary to meet its outstanding liabilities. UNIVERSAL EXPRESSIONS OF SYMPATHY. When the suspension became known there was among business men a universal expression of regret and of sympathy with Abraham Barker, the venerable head of the firm. Mr. Barker is a general favorite in Philadelphia's financial circles, and many bankers, brokers, merchants and men in various lines of business called on him to assure him of their sympathy and esteem. Mr. Barker was very much affected, and he showed by his evidently suppressed excitement that he felt keenly the failure of the house. During the past few days, he said, he had devoted all of his time and financial ability to raising money for the help of others, and when his own time of need came those who were indebted to the house had failed to meet their obligations, and suspension became inevitable. HISTORY OF THE HOUSE. The firm of Barker Bros. & Co. consists of Abraham Barker and his son, Wharton Barker. Abraham Barker, the founder of the firm, is the son of Jacob Barker, the famous financier, and was born in New York city June 3, 1821. Abraham Barker began his financial career in 1837 in New Orleans when he was seventeen years old. He entered the firm of Horace Bean & Co., correspondents of Jacob Little, who was then the Jay Gould of Wall street. In 1842, when Abraham had attained his majority, he went to Philadelphia and established himself in business as a banker and broker at 28 South 3d street with his brother, Andrew Sigourney Barker. Wharton Barker, Abraham's son, became a member of the firm in 1868. In 1877-78 the firm was brought prominently before the public by the announcement that they had become the financial agents of the Russian government in the United States. In view of the fact that war between England and Russia seemed imminent at that time the mission was a most important one. When the Russian government intrusted the firm with the purchase of the four men-of-war Wharton was the principal agent, and in 1879, as a reward for his services, he was decorated by the czar with the second rank of the Order of St. Stanislaus. After the completion of the contract for the men-of-war the Russian government offered Mr. Barker some contracts for developing the coal resources of southeastern Russia-contracts that involved many millions. To view this property Mr. Barker went to Russia during the summer of 1880. THE CHINESE CONCESSIONS.

7. November 28, 1890 The Great West Saint Paul, MN
Article from The Great West, November 28, 1890

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"Capital Will Withdraw!" No! you don't say so! God bless you, is that possible? Happy day for farmers when the Eastern Bloodswipe wipes his crimson jaws, and says, "No more money for that state!" Halcyon promise for toil when it becomes impossible to mortgage another farm Capital-foreign or eastern capital? Why, the daily plutocratic spittoon-cleaners imply that capital importations are a blessing! Blessing? Yes, in the same sense that pirates are-they keep money "in circulation"-and blood too. Farmer, don't mortgage that farm now! Look out! You know well the breakers are beating against the shore-and in a few hours your craft will strike! Let the west teach the east the want of value in a leech when there is no blood to suck. Thefailure of Barker Bros., of Philadelphia, with liabilitis of $3,000,000, at the close of the last week, indicates that the financial difficulties are only smothered. The western dailies continue to write headlines to state that "Everything is Brightening." "The "Finance Company," a Philadelphia TrustConcern,with$5,000,000 assets, also closed its doors. LATER.-The money market is again quieting-as it did between each of the previous shocks. Our advice to poor people is. to save up a little money and keep it by you. The present processes of "covering" has kept these "crashes" from spreading, so far, and may continue to do so-but it is "safer to be safe." The man who runs the supposed St. Paul end of a labor journal called the Industrial Age puts in a column and a half this week on our plea at Stillwater to Lathrop's suit. The fact is the little game to ruin the GREAT WEST did not work-and among the minions of plutocracy who were disappointed was an exBaptist Clergyman from New York via Chicago, who stepped into the Alliance work in time to ask Bierman for an office-and who now runs the St. Paul end of that sheet. As for the Industrial Age, ask the organized labor of Duluth how well it represented them there. Mr. Lathrop's accounts have been published down to the repayment of $145 nearly 40 days after his removal as Secretary. It will all be published again, with the letters received, and the shortages noted-before entering upon the prosecution. The GREAT WEST was just a little too early a riser to be caught in that trap. As for the Ind. Age, let it buzz-it is as harmless against the G. W. as it is against the plutocrats. If it has ever done anything in the cause, what is it? We understand that Mr. H. E. Boen, Register of Otter Tail County, objects to our statement that certain farmers of the county led by Mr. Plowman and urged by the GREAT WEST, got him to make the mortgage report. In other words he claims the "credit" of doing the work of his own motive. As one of the cash sponsors for "the job" the GREAT WEST objects to this view of the case. Mr. Boen was not willing at first to undertake the work, and objected to it both on account of expense and usefulness. That he undertook the work, however, is greatly to his credit, and for it we thank him. This horrible expose took our breath away. The party papers are silent on the matter, and well they may be. It was the picture of ruin