Rensselaer Semi-Weekly Republican, Volume 19, Number 3, Rensselaer, Jasper County, 14 September 1897 — BUSTED AGAIN! [ARTICLE]

BUSTED AGAIN!

Elmer aud Jay Dwiggins Score The Sensational Failure of the Season Their Liabilities Said To Keach the Million Mark. Reports of the phenomenal financial success of those two prodigies of finance, natives of Rensselaer, Elmer and Jay Dwiggins have been drifting back to Rensselaer for the past year or two. They were in business on Wall St and year before last they are said to have cleaned up their Klondike for $75,000, above expenses. For last year the eyes of their fellow native Hoosiers in this region were bulged out at the information that their clear profits were $240,000, in cold cash. They occupied elegant villas in one of the most aristocratic suburbs on the Hudson, traveled up and down that stream in their private yacht, and were the highest of the high flyers lyNow they have failed, made an assignment, busted/ The following Associated Press dispatches appear in today’s papers:

New York, Sept. 9. —James R. Willard, Elmer Dwiggins and Jay Dwiggins, who compose the firm of J. R. Willard & Co., bankers and brokers, with offices in this city, Buffalo, N. Y., Washington, Philadelphia and Montreal, today assigned to Jas. L. Starbuck, with preferences for §2O 000 to Win, H. Osterbout. It is estimated that the liabilities will reach §1,000,000. Jay Dwiggins is at present traveling in Europe. J. R. Willard, senior member of the firm, lias been a member of the Consolidated Exchange since Sept. 23, 1895. He had represented the firm in Chicago and had a branch office in that city up tq, a few months ago, when it closed and the business was taken over by John Dickinson & Co. Elmer Dwiggins was the working head of the firm. He made application to be admitted to membership in the Consolidated Exchange on July 31, but was not admitted. Elmer and Jay Dwiggins, who are brothers, are nephews of Zimri Dwiggins, who founded a large system of country banks irbJllinois, Indiana and other Western States, most of which failed in the panic of 1893. “The cause of the failure,’’ said Assignee Starbuck, “is simply that the firm has been on the wrong side of the market. It has been short on stock and grain.” The firm has done a big business on the Consolidated Exchange within sixty days, having run as high as 9,000 to 10,000 shares of stock daily.

The assignee, Mr. Starbuck, is one of the bookkeepers of the firm. On his behalf another employe made the following statement: ‘‘lt is, difficult to tell what the liabilities of the firm are, but they will probably amount to as much as $1,000,000. It is even more difficult at this time to give any idea of the assets of the firm. Whatever they are they consist mainly of cash in bank, outstanding accounts and securities. There is some prospect of a resumption of business, provided a reasonable settlement can be made with creditors.” Their Chicago Career. Chicago, Sept. 9.- —The firm of Willard & Co. was organized in

this city Sept. 7, 1895, the capital being furnished and the business being owned by Jay and Elmer Dwiggins. These young men are nephews of Zimri Dwiggins, whose financial methods are said to have wrecked a number of country banks several years ago and helped to carry down the Columbia National Bank in this city. The nephews delt in real estate and had elegant offices in the Chamber of Commerce building. ’ The Dwiggins brothers opened a “commissin house” and began dealing in grain and stocks and bonds under the name of Valentine & Co. It is also alleged that, in connection with Guy Arbogast, they conducted business under the names of Arbogast & Co. and W. Z. Wright & Co. Matters ran along smoothly foi a few months, and then Ciyic Federation and the Board of Trade officials began a crusade against bucket shops, and Valentine & Co. and their adjuncts ceased doing business. It was at this time that the firm of J. R. Willard & Co. was organized. Mr. Willard was one of the best informed men in the grain trade, bore a most excellent reputation and was a member of the Chicago Board of Trade, the New York Consolidated Stock Exchange and the New York Produce Exchange, Willard was guaranted a stated salary for his services and the use of his name, but he had no other interest in the firm and no voice in the management. Recently the good will of the house was sold to another firm.