New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-13
WALL-SE. COMPLICATIONS.

PROCEEDINGS IN TIE BANKRUPTCY CASE or GEORGE
BIRD GRINNELL & CO.-CHARGES OF CONSPIRACY
AND COLLISION.
In the United States District Court on Sat
urday, in the case OF Henry Myers agt. George Bird
Grinnen & Coz and in the Of the same petitioner
agt. George b. Gnnne Co., Mr.. Da Costa presented
proof the service Of the order requiring those firms
10 show cause why they should be adiudcaed bank
rups and asked that they should be so adudlcated.
Judge Blatchford wanted to know IL answers
had been filed behalf of the alleged btnkrupts; and
Martin Smith, their counsel said that answers had not
and would not be fled "Then," said Mr. ia Costa, "
move that upon the petitions Of Henry Myers, the gen
eral partnership OF Geo. b. Gruncll q Co., and the
special partnership OF Geo. Bird Grnrci Co., re al
Indicated bankrupt by default"
William NJ Eyarts-Before your Honor grants or re-
fuses that motion, l desire 20 be heard 1 appear In
behalf OF several OF the parties 10 this proceeding who
have been restrained by injunction from dsposue OF
their property and among them are Blake Bros Co.
charge that the proceedings ia this case are founded 10
fraud and that there Is "a collision between TIE petition
ing creditor, Mr. Myers, and Grunell Co. Blake
Bros d CO. have been euoined rom selling certain
stocks held by them; and AK that, the ground OF
fraud aud couson le injunction agains. them be d-
solved The motion dissolve that INJUNCTION rs made
on papers copies OF which have been served aud justice
requires that IL be granted.
Judge Biatchford-sIch litigation would Of course, he
good grounds for dissoivng the injunction and II You
present the Court petition giving sufficient reasons
for believing that the proceedings IA tins case arc no,
legitimate there will be- OF course only one thing to DO
Mr. Eyarts-My position Is that tbs proceedings IN
tins ease are not legitimate.
At this point great confusion was created by lawyer
springng their and announcing that hey appeared
for the following parties who had been restrained from
disposing OF their property: william Ahen huo.er loi
TriEci, T. Waller CO.. Weston Co., Lawrence. Bro :,
! A. Co and j. VI. HafshOrue q Co; judy Henry T.
ieron Tor j. g. Colgate CO.; and Z. " stquslton f0r
the estate ~ the late lIouc. 4. Cara. J.. =. lioF'
scott Strong Il CO., MusAridc Co. }. Is. G.ncit Coz
Kuhn Loeb & Co, Edward Is. Wesley, Receiver ot the
Union Trust Company, were also represented oy tne'
| attorneys.
After much promiscuous discussion Il was agreed Ia
allow the case relative the special partnership o
George Bird Grinuei Co. 90 stand over yil next PAT
of George g. GrinueIl a Co. taken up MI. taoate
Of counsel for Bake Brothers * Co read IS aitNl Oh
f. f. OcOt of that hrm, 10 me enrct that MS aEe
had any dealings with the firm Of George - Grinncll o.
Co that the claim upon which the proceedings aie
founded was based upon trahsHcliph' With n' ,'e q,
place between him and certain Ohcr hrm IL Whch IL
had become indebted TO him mat thc Only connection
the firm OF George b. Grnnc & Co. ever mad with My
ers was transfer the aforesaid Indebtedness Ia NYer
credit on books aud that the Information IN Myers
petition must nave beeh lurnlsneu u5 So,ls melpCl
! The firm of George =. GIinnel * Go. The all
Tities held by Blake Brothers 4 Co., IA which. is
alleged the firm Of George r. Grinneli * Co. hat an III
tcrc- ut the time Of the service o Tue INJUNCTION.
| Mr. DaCosta read the Joint affidavit Of George luu
| Grinneu and Joseph c. Williams it is subStan-
published IN full IN TIE TRIBUNE, WIN the exception
that IL says that Myers did receive ms luunltiOn from
tine firm Of George Bird GuEnell o., ana mat IL
Wa furnished 20 INN as would nave bee 10 any OlLeL
| creditor desiring II.
| Mr. Eyarts replied TO the af1layls substantially as
| follows: II the firm OF Geo. Is. Crnncl 4 GO. were
honest it would have sought a voluntary bankruptcy
BY the course pun sued however, that IRA has made an
experiment in tie stock market favorable 10 itslt aud
prcudicial TO those 10 whom stocks pledged. l.
other firms should do there would be bankruptcy on
All sidcs The conduct OF Geo. Bird Grinncu q Co Is
! well undcrsOo on the Street. they cOnspred, I'M
der the scheme OF bankruptcy TO ruin Others" IL Is
also well understood that "collusio1 exists between
MYERS and that firm" and IS " the COurt going o. save
IN by running hundreds OF Othcrst II IL Is tue opera
tions OF people In their commerce must nc suo-
| pended or the Bankruptcy Act must bc repeated
After considerable crOss-lng on the part or COUNSEL
JuIge B.aohtOrd sand: " think understand the case
| now but vet Il like TO know when Myers got tue
guarantee mentioned in his affidavit accompanying his
petition He does not give copy or H. nor htite Wheh
IL was executed If t made Tor tue purpose az IN
huencing these proceedings, 10 would be question Tor
tho Court to consider II the agreement were made 1T a
time when it could not be open to question, then II
! could not fall. | confess 1t ike TO see IT,"
The Judge then announced that he would reserve his
decision and court adjourned The cases Oi the rest
of the efoiued parties the proceeding were put over
TIL Saturday when heavy sAru.suIAS along the ehur e
| line may be expected.
The proceedings in the Grnneu bankruptcy case were
the main feature OF interest IN Walst, on saturday
The uncertainty attending its resu Is exercised de-
press ng eff, the stock market, ana particularly
with respect TO Lake Shore and western Union.