The evening world. [volume] (New York, N.Y.) 1887-1931, 1894-10-06
"DEBENTURE" BONDS.
Coffin & Stantou's Creditors Are
Anxious to Know Their Value.
The 0efunct Firm Had About $780,
900 Worth Outstanding.
Rumor that Receiver Erb's Removal
Is to BE Asked For.

yesterday, intend to do, Is the question
being asked in Wall street this morn
| ing. At the offices of the rrm ~ Broad
way. II big force OF laburcrs IL at work
removing all the belongings of the
firm and office fixtures. The expensive
rugs fine furniture and furnishings
have been almost entirely removed since
yesterday, and men are taking down
the brass ratings and bookcases. Ev-
erything indicates that the moving was
calculated on before the reCeivership
| became known
| There were many callers at the office,
and they stood about amid the dust and
| dirt incident to the tearing up of
| things, waiting to see Receiver Erb or
some of the firm.
The receiyership was something of a
surprise to wall street, but now that
1t is fact. 1t is learned that "A number
OF the leading banks have for some time
had numerous inquiries from their
| country customers AS to the reliability
OF Coffin n stanton and the securities
| which the firm were putting out all
| over New England.
The particular thing which the coun-
sci for the creditors Is trying to ind out
| this morning Ia what the American
| Dcbenture Company" consists of. 1t
was upon the notes Of this concern that
the firm obtained loans for large
custom to put in few securities OF
some worth, along with lot of the
| Dehenture bonds.
| The latter have no guarantee other
than that OF Coffin Il Stanton OF
| these bonds there are at present out
standing about s25O,oOO worth They
the Holland Trust Company, and later
| with the Atlantic Trust Company, Of
| the securities of the various water
companies, town and railroad companies
| which Coffin & Stanton handled.
| The actual value of these securities
is a matter OF interest just now,
| People who know are disposed to laugh
at the statement. issued by Receiver
| Neuman Erb yesterday 20 the effect that
he knew nothing about the FIRMS affairs.
| Erb has for long time had his office
with the firm of Cofiln q stanton, In the
same room. and has generally been re-
garded as the adviser of and an interest
| ed party in the transactions of the con-
Germ. This, however, is denied by Mr..
| Erb.
Another matter which is being largely
commented on by brokers this morning
is the complete ARRANGEMENT when Vas
made for the recelvership, when the frm
| knew that legal proceedings were con-
tempated by more than one party to
| recover securities which 1t was alleged
the firm held without right.
| The alleged falling out between the
partners Is looked upon by many as n
| mere excuse to account to the public
| for the receivership. The firms handling
of the Topeka Water Works Company
bonds, Of the Indianapolis city bonds,
the bonds OF the Water Works Company
bonds of John Y. McKane is sharply
| commented on by the bankers and others
who are more or less familiar with the
| transactions.
1t is also reported that the firm rs in
Of the Inddianapoiis National bank, and
that an accounting with that institution
| Is yet to be made
| II is stated definitely that Coffin &
stanton settled all their obligations to
| the American Loan and Trust Company,
which failed in 1891, soon after the re
ceiver took hold of that concern. Their
| Indebtedness to the American loan and
Trust Company amounted TO $4,000 on
| demand loans, secured by collateral con-
| sisting of water, county and railway
bonds of town all over The country.
Coffin & Stanton's relations with John
| Y. Mckane will, ii is said, be an inter-
est!ng matter for INVESTIGATION;
The rm was loaded up with Graes-
esd per, cent. Local Improvement
| bonds, which they offered to bankers all
| Ger the country from Male 10 Georgia,
| through the medium of drummer
| which they kept on the road, II is said
| that no cash was ever paid for these
| bonds by Aim g. stanton, but that Nc
| Kane deposited them with the firm To
| dispose of as hey could.
| ing banks here, from country instltu-
| tons as To the value of these Graves
end bonds. In many instances they
were successful in placing substantial
rate of interest . or 3 per cent. higher
| than good paper was bringing in New
! York Their excuse for going into the
| country for money was that they want
ed to give the small bankers a chance
| to make good interest, The, country
people caught on" but when the
| loans matured. II was simply case of
| renewal or take the securities, which
usually averaged, on realization, much
less than the amount of the loan.
| Here Is sample of one of Coffin x
| per cents.
Clty OF Gloyersylle y. Y. water works per
| cents
CITY OF Muncie Ind, refundIns per cents.
pehonturc Guarantee and Assurance Company OF
Great britain and America series CO.. per
| cent dchentures.
WinnebHgD County. Ia, retuniing b per cents,
payable Feb. II. 1884
1t VIII be seen that the milk in the
coaconut to Coffin 4 stanton Is the block
Of Debenture bonds sandwiChed in be-
tween the more valuable securities.
A REPORT was current around Wall
street this noon That the counsel for the
creditors would institute proceedings
looking to the removal of MIR. Erh As
receiver, on the ground that he was
associated with coffin a Stanton- ami
was counsel for the firm. and therefore
the creditors preferred some more dis
interested party.
When Diil. Chandler 2, SeEman. CouU-
sci for the creditors, were seen they
idecliued 10 say anything about the mat
ter further than to state that certain
| proceedings were contemplated, ana
luntil the action contemplated was con
summn ted they would say nothing, l.
was intimated that interesting deVel-
opments were close at hand.
Inquiry at IN" Office Of the firm for
Mr.. CONN eNcited. the information that
ne had not been down andw uuld not
put in an appearance hrIor" next
week
In connection with the failure brokers
are recalling an adventure some Of their
sumber went through out at StantOn's
place out AZ Hilsdale. y, J., secral
months ago stanton invited u party
out there t. see - patent heating ap-
ptratuS in which ne said there was
millions. The brokers went out, stan
tuu started up the ihetter," and by
/ forming his quests We're almest dead
from gas. some Of them In fact were
given Up hy the doctors
The affair created sensation At the
time. and after their recovery some OF
the guests brought suits for heavy dam
ages THAT was the end OF Stantons
Nt O'Clock to-day a statement was
made that the firm would pay 10 cents
An attachment for $1,000 was granted
to-day by Justice Lawrence against
property in this city belonging TO Cot-
nm & Stanton. limited. OF London, IN
favor Of Martins Bank, limited, Of