St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-07-18
MILLIONS Sc00pED.
NEUTRALITY-SUSPICIOUS. DOLLAR ECHO
OF THE OLD POTTER-LOV-
ELL FAILURE.
CHICAGO BROKERS ACCUSED
j. v. FARWELL & co. CHARGED
WITH SPIRITING AWAY Sc
CURITIES.
DEMAND FOR AN ACCOUNTING.
Securities of the GOgebic DeveI-
opment Company Represent
the Greater Part.

CHICAGO, July 17.-John Brooks
and George D. Bullen, assignees of
Potter, Lowell & Co., of Boston, to-
day filed a bill of discovery against
the firm of j. V. Farwell & Co., of
this city, asking that the firm be
compelled to account for $12, SAC, 900
of securities which it is alleged were
fraudulently transferred on the
evening of the assignment of Potter,
Lowell & Co., in August, 1890. Pot
ter, Lowell & Co. We're stock brokers,
with capital of 100000, and at the
time Of their failure they had assets
of 100000 and liabilities of $4,000
600. A few days before the failure, it
is alleged in the bill, securities val
ued at $5,000,000 were taken from the
firm and secreted. Potter, Lowell
d Co. did brokerage business with
Farwe1 & Co., and John V. Far
we'll was a stockholder in the firm
OF Potter, Lowell & Co. from Jan. l
to Aug. 81 1890. 1t is alleged that
before the failure the firm fraudu-
lently appropriated 100000 of other
peoples money and pledged $500, 900
more. 1t is claimed that the Far
wells We're cogniZant of these tran
sactions. 1t is also alleged that the
transfer of a large number of Sc
curltieS was made to the firm of
F'arweH & Co., and that John T.
ChumaSero, partner of John V.
Farwell, carried these securities out
OF the state of Massachusetts,. The
securities said to have been taken
are: Five notes of c. w. Clement,
trustee, $4,000 each, $3.50, 600; 1,4OO
shares of stock in the Worcester
Steel works, $4,000; $50 first mort
gage bonds Of the Gogebic Develop
ment company, $500 5000 shares
stock in same, $125, 900; 24O first mort
gaze bonds of the Brazos River Chan
mel and Dock company, $780, 900; $50
bonds of the Gogebic Development
company, $750,000; $4,000 shares in
same, $9,460,00 Ii, 125 bonds of the
Gogebic Development company, ST.
1850 The suit was filed in the
United States court.
HARD TO REACH THEM
Walter Lowell, the treasurer of the
brokerage firm, the aSsigneeS declare
LETT the country shortly after the
failure and is living in Mexico. Last
April, it is asserted, he visited New
York, and statement of the transfer
was secured from him. Since Aug. 81
1890, no member of the firm of John V.
Farwell & Co., or its successor the
John V. Farwell company, has been
Within the state of Massa
The firm, it is said, has claimed to be
a large creditor OF the assigned firm of
Potter, Lowell & Company, but no proof
OF that claim has ever been submitted.
CHARLES F. Harding, attorney for the
John V. Farwen company, made the
following statement regarding the suit :.
In the fall of 1890 Potter, Lowell & Co
were owing John V. FarwelI & Co. a.
considerable amount of money. and had
been owing it to them for a long time
perhaps year, before they failed.
Potter, Lowell & Co. gave JOHNNY. Far
well d Co. collateral note for the debt
and deposited, to secure it, some of the
bonds or stocks which are the subjects
OF this suit. Many of the stocks and
bonds and other things mentioned in
the demand were not so deposited with
US and never have been with us. Some
Gays before the failure this collateral
note was renewed and the same securi-
tles were again set out in the new note
L nave not seen the bill as filed. but
understand its object is to recover
PACK, under the insolvency laws of
massachusetts,, securities given imme-
dlateiy before the insolvency proceed
lngs were held in the Potter, Lowell &,
Co failure. The insolvency law of
massachusetts, provides that the trans
Ter of any securities within six months
OF insolvency is a fraudulent transfer.
The John V. Far well association claims
that such Of the securities as it ever
mad transferred to it were given the
year before the insolvency proceedings
and hence do not come within the
statute