The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-14

would represent In round ngures probably
about S436, 600.
The taking OF this cotton for use unbe-
known to broker or banks and without
authority IL called misrepresentation, In
the polite language Of trade. Every day
folks might call 1t theft.
Action Of the peming Co.
Promptly upon the collapse Of the
Bennett and Columbia mills and tho dis
covery OF the misappropriation or the
cotton owned by the IL. III. Deming Com
pany and In storage at New Bedford, the
Providence cotton firm were confronted
with this situation: They were liable TO
the banks for a sum amounting To more
than 800, 600 and the collateral on which
the money had been advanced them, ana
which was their security with the banks.
had disappeared or at least good deal OF
10 had. OF course the banks looked To
the X III. Deming Company TO Square
them for what In somo instances would
have been quito considerable loss, while
the cotton firm had only TO look TO the
receivers of the Bennett ana Columbia
property for whatever might come out
after an overhauling Of those concerns.
There was only ono thing for the X. III.
Deming Company TO do provided they
Were In situation % meot the imposing
banks Fortunately, tho Gotten men
were able to meet the obligation and they
did it. They did IL at once. They did It
without making any fuss about IT, a
bank official whose bank held some OF
the paper told a News representative that
representative Of the H. II; Deming
Company came TO his bank. to take up the
obligation held there before the bank was
aware that anything was the matter
Within "a hours tho affair so far as the
banks were concerned, was satisfactorily
settled and the Deming Company didn
owe dollar TO any bank or to any indl-
yidual on the Bennett and Columbia
account They put their receipts and
securities In the safe together and pocketed
tho loss to await whatever may ultimately
come back TO them from the receivership
with what resignation was possible under
the circumstances The statement In the
foregoing report from Now Bedford To
the effect that the receivers will prob
ably reimburse the banks" Is accordingly
all rubbish. The banks have already
been takon care of by the DeminS Com
pnny weeks ago, and the receivers have
nothing TO do witnt case.
The News had knowledge Of these facts
and the satisfactory arrangements made
so long as three weeks ago. That no
reference was made of the exact situation
was due entirely TO desire To conserve
the interests Of all concerned. Tho prac-
tice of transactions in cotton as outlined
In the foregoing is OF long standing ana
lllb ldtlS III iIt DtuittV anu Noiuii'''ss
collapse as affecting the brokers and
jeopardizing the banks. If mado known,
would have threatened the successful
prosecution Of the cotton business
throughout southeastern New England.
Despite the satisfactory settlement
scare would have been created and the
consequences would have been most seri-
Gus. As IL was the prompt settlement OF
the Deming Company prevented even IA
ripple of alarm from coming TO the sur
face and the business has gone on as us
ual, it is believed, without any with
drawals Of credit or anything else TO ham
per tho cotton men ana the mills and
compel them to readjust business meth
ods for many years approved and prose
cutcd only TO the best interests and con-
venience Of all concerned.
The dispatch from New Bedford was
thus calculated to do great deal of dam
age not only because IL calls the credit OF
the Deming Company into question, but
in a broader way, opens up situation
that. thanks to tho prompt action OF the
Providence concern, was handsomely got
ten over without furry or any unusual
public attention being called to it,