St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-09-10
STARTLING RUMORS IN CONNECs
TION WITH THE OsLEARY
FAILURE.
STOCK SAID TO BE SHORT.
WHICH, IF TRUE, AFFECTS THE
COLLATERAL OF SEVERAL
INSTITUTIONS.
BANKS HEAR OF THE REPoR1
But Are Assured That Everything
Will Be Found to Be All
Right.

A sequel to the failure of John
J. O'Leary & Sons, the large meat
packing firm, which occurred last
Friday, developed yesterday and
caused a decided sensation. The
failure, according to the reports in
circulation, is not only much worse
than was at first supposed, but may
result in criminal proceedings
against some people. 1t is said on
good authority that the firm has
borrowed S217 ,0G0 from various banks
on storage certificates issued by the
storage and warehouse company
where its products were stored, and
that it now develops, according to
report, that but small part of the
stock represented by these certifi-
Gates is actually in the warehouse
of the cold storage company, the
certificates having been issued
against insufficient amounts of goods
stored through earelessness or worse
on the part Of some employe. Just
how much stock is short has not
yet been ascertained to a certainty,
but current report has II that there
is not to exceed $4,000 worth repre-
senting all the certificates on which
the S217, 900 was borrowed.
Representatives of all the banks
interested held a meeting yesterday,
at which the matter was discussed
with the officers of the cold storage
company, j. F. Broderick, the as
signee of the firm, and a representa-
tive of the firm, who were present.
The proceedings were kept very
quiet, and it was learned last night
that an understanding had been
| reached that none of the facts were
to be made public if II could. be
avoided. 1t was agreed that an in
ventory Of the amount Of stock in
the cold storage company's ware
| house should be taken today, when
the real shortage will be made
known.
An effort was made by a Clio b e
reporter last night to see Mr.. Brod-
erick, but that gentleman was not
to be found. William H. Thurston,
vice president and general manager
of the cold storage company, was
seen, but all he had to say was that
there was absolutely no truth in the
report. Questioned on the different
phases of the affair, his answer was
| just the same-"There is no truth in
| it whatever
William H. Patterson, president
and treasurer of the cold storage
company, was next seen. Mr.. Pat
terson admitted that such a rumor
was af1oat to his own knowledge, but
denied that there was any good
| foundation for it. Rumors were al
ways common regarding failures OF
as much Importance as this one.
Every certificate issued for stock
| stored in our warehouse is issued by
Mr.. Thurston or myself he said,
land every one of the certificates
held by the banks here is genuine"
But do you and Mr.. Thurston
| not have to take the word of some
of your employees as to what goods
have been received?" was asked
Yes, of course we have to take
| the certificate Of our warehouse
man." he replied. but there is no
evidence that every barrel OF meat
| called for on these certificates is
! not in the warehouse. We do not
know until an inventory is taken.
| believe it will be found that every
barrel called for is on hand 1 took
| account of stock in the Tenth street
warehouse myself and found that
| there were 240 barrels more there
than the certificates call for. In
this little warehouse alone there is
| over $1,000 worth of stock.
THE bankers held meeting this
evening" he continued, ''and will go
down to take stock in the large
warehouse tomorrow. Then we will
know just how things stand. The
officers of the st. Paul National
bank checked up the stock on which
their bank had loaned in the large
warehouse, and found it all there a
short time ago, and there is moth
ing more than suspicion to indicate
that all the others may not find
theirs on hand, too"
John j. OLeary Jr., the head of
the insolvent firm, is seriously i'll.
and could not be seen, but an effort
was made to see D. W. Lawler. his
brother-in-law. Mr.. Lawler han
pened to be absent from home. how
ever, and could not be found.