Democratic Sentinel, Volume 9, Number 26, Rensselaer, Jasper County, 24 July 1885 — FAILURE OF JOHN ROACH. [ARTICLE]

FAILURE OF JOHN ROACH.

The Famous Builder of Ships Compelled to Make an Assignment. Preferences Given for an Aggregate Amount of Over One Hundred Thousand Dollars. [New York telegram.] Saturday afternoon a notice of assignment was filed in the County Clerk’s office by John Roich, the well-known ship-build-er. About the same time notice was posted at the iron-works on East 9th street to ttie effect that employes would be paid on Monday by Mr Mooney, Roach’s bookkeeper, and that the works would be closed till further notice. George M. Quintard and George E. Weed are named assignees, and preferences are given to the amount of $122,217.78. The preferred creditors are William Rowland, of New Brunswick, N. J., $62,217.18; the Mechanics and Traders’ Bank of Brooklyn, $20,C09, and P. W. Gallaudet & Co., $40,000. Shortly after the notice was posted at the works Mr. Roach, accompanied by his two sons, Garrett and Stephen, left for the shipbuilder’s place on the Sound. Mr. Garrett Roach said in answer to que tions that the complications arising from the recent decisions of Attorney General Garland had induced his father to place all his property in the hands of trustees, so that the interests of all creditors might be guarded. Mr. Quintard, one of the assignees, said the assignment had been a surprise to him. There was no doubt as to its being due to Secretary Whitney’s action in the case of the Dolphin, and he (Quintard) thought Mr. Roach feared similar action on the part of the Secretary in regard to other contracts. There was $69,1)00 owing to Mr. Roach for repairs on the double-turret monitor Puritan, besides money on the three cruisers, the Atlanta, the Boston, and the Chicago. He believed there was $223,000 due on the Chicago, and $6,000 each on the Atlanta and Boston, and uncertainty as to payment of these amounts was the cause of the assignment. Mr. Quintard thought Mr. Roach’s property was sufficient to pay all claims. He added that Mr. Roach was completely broken down physically. Mr. Aaron J. Vnnderpoel, one of the great shipbuilder’s lawyers, said his client, was a very sick man,. but he was sure every creditor would be paid in full, as Mr. Roach could pay $2 for every $1 he owed. [Chester (Pa.) dispatch.] The news of the failure of John Roach caused considerable excitement here, where his solvency had never been questioned. Up to within a year ago his weekly pay-roll was never le>s than $15,000. Now it is about $7,000, but this will be reduced tomorrow, when 400 men will be laid off. Only enough workmen will be kept to finish the Mallory ship Comal. Representatives of the Winchester Company say the shipyard was a separate corporation and was not included in the assignment. The yard will be affected, however, and as Mr. Roach is a large stockholder in the Chester rolling mills, blast furnace, and Combination Iron and Steel Company, located here, it is difficult to foretell the result on these places. Work on the cruisers Boston and Chicago and the monitor Puritan will virtually be suspended.

Secretary Whitney on the Failure. [Newport (R I.) special.] Secretaiy of the Navy Whitney, speaking of the assignment of John Roach & Sons, said to-night: “I must admit that I was j very much surprised to learn of the assignment of Mr. Roach, and lam sorry for it, yet I do not see how the Navv Department of the Government is iu any way responsible. As a matter of fact there is only $15,000 or $20,000 difference between the Government and Mr. Roach. All he could connect the Government with in the matj ter is this: He would say: ‘The Dolphin is ready, and the Government refuses to receive her, and I cannot get my $15,000 or $20,000.’ Now whether that would cause the suspension of a man like that, I cannot tell you. In the matter of the assignment, and the individuals preferred, it is clear | that the Government i# protected, for the reason that we hold the bondsmen whom j Mr, Roich has given the preference.” The | Secretary said there was no reason why the | other contracts should not be proceeded with.

Roach on the Disaster, “As to the causes which have led up to my assignment, strict v speaking, it is not a failure,” said John Roach to a New York reporter; “that is to say, my assignees will be able to pay $2 for every $1 of liabilities if they realize anything like the real value of my property. I cannot say what the exact amount of my liabilities is, nor what the sum of the assets will be to meet them. If the people understood this matter, if the mendacious free-trader had not so extensively deceived them, the failure of John Roach would be looked upon from ocean to ocean as a national calamity. This is not a party question. I have been a Republican, but above that I have first, last, and ever been an American. It was my great ambition that our nation should recover its glory and prosperity on the seas. I incorporated companies to Rail vessels, and, despite the fact that the Government lent me scant encouragement, while foreign Governments practically supported their ship-builders, I I have proved that it is possible for us to secure an immense foreign trade and to become. if the Government would but lift its consenting finger, the greatest sea-trading nation of the earth. Business became stagnant about a year ago when the Presidential nominations were being made. The ‘ free ship ’ movement was strong, for it has a catchy •ound. The Democratic party is supposed to favor free ships, and when the election excitement began and people saw the possibility of Democratic success and of the passage of a law that would mean the annihilation of American shipbuilding there was no business. All the work, therefore, that I have on hand has been th« construction of the new dispatch-boat and the three new cruisers. In the meantime the Democracy had come into power, and prepared to prove their prophecy that th» appropriation was not honestly spent Ths Dolphin, a strong, substantial, excellent vessel, was condemned on the most puerile technicalities, and to add to this injustice, Mr. Garland has repudiated the contracts and practically said that there exists no binding agreement between me and the Government. That capped the climax. ’’