Savannah morning news. [volume] (Savannah) 1868-1887, 1886-01-22
A SHAMEFUL STORY.
The Transactions of the Firm of j. S.
Stewart ~ son Plainly Presented.
From Ire Macon Gan 7.leorapA.


From Ire Aacon (Ga.l Telegraph.
The figures which follow will make
more apparent the condition OF the affairs
of the firm of j. S. Stewart & Son:
Total number Of bales of cotton in the
warehouse at the time of the fire, Al. OF
this number, 102 belonged 10 outside par
ties. Subtractlng the latter number from
the former, remainder Of $50 tales will
be left, which may be considered the pro-
perty of the firm. The firm borrowed from
the banks $S4, COO, for which they pledged
receipts for 1,2S6 bales of cotton. They
obtained insurance on the 1885 re-
ceipts, which really represented only
33S bales OF cotton. to tn amountof about
1913, 800. Including the 102 bales that be-
longed to outside parties, what appeared
20 be original receipts for about 260 OF the
AL bales, which Were in the warehouse at
the time OF the fire, were present ted by the
firm to the adjusters for consideration in
the settlement. BY adding together the
1928 receipts held by the banks, and the
260 presented to the adlusters, il Will be
seen that there were outstanding receipts
for 1,647 bales of cotton, while only AL
were actually in the warehouse.
The proceeds of the cotton saved from
the fire amounted to IS, 400. The insurance
companies paid on losses $500. This
makes Total of $l7 600. About $4,000
was paid to Mr.. j. &. Ruan and other
outside parties who held Insurance on
their cotton in their own names. The
amount paid to the banks was $4,000,
leaving j. S. Stewart j. Son indebted to
| them about $4,000.
Yesterday afternoon the banks involved
the Central Georgia, the Exchange, the
Capital and the savings completed their
settlement with the firm. Several of the
firms customers, who ordered insurance
but failed to obtain it by the firms negli-
gence, were allowed to come into the set
| Element, so that the firm will have to
make good about $22, 600 To do this, Mr.
j. s. Stewart has turned over to the banks
! all his claims against planters. amount
ing to about $4,000, and his real estate,
amounting to about $4,000. Mr.. W. A.
Davis viii be made collector for the
banks.
1t appears that the receipts upon which
loans were obtained from the banks were
signed by f. NJ. Stewart, the junior part
ner in the firm. Mr.. J. 5. Stewart, how
ever, negotiated the loans. Duplicate
| and even triplicate receipts were used.
The Investigations of the adiusters devel-
| oped also that after loans were obtained
upon such receipts the cotton which they
were supposed to represent was sold and
removed from the warehouse.
The Telegraph is in possession of relia-
BILE information to the effect that Mr.. j. s.
Stewart did not draw and use money bOr-
rOwed from the banks, but accepted his
customers drafts, which the banks dis
counted. When the drafts became due, a
large number of them were not paid Oy
the planters. The loans we're made to
take up the drafts.
The Central Georgia Bank, the Ex-
change Bank, the Capital Bank and the
Macon Savings Bank, make the following
statement:
"Messrs. j. s. Stewart g. Son have sat
| isfactOuly adjusted their Indebtedness to
the banks, and they proceed with their
business as heretofore. To the credit of
Mr.. j. S. Stewart, although his transac-
tons looked fraudulent at the time of the
fire, his surrendering his entire property
has redaemed his characterO