The daily morning journal and courier., 1897-05-10
E, s. GREELEY < COMPANY
RU1FORED DEF1LO1TION IN THE
 CONCERNS AFFAIRS.


 Confirm Nor Deny the story-He Is Inc vestigating the Books-Can Give No Statement Until Receivers Report is Made to the Court.
 The New York Herald of yesterday morning gave out the following con cerning the report of the receiver of the E. s. Greeley 6s Co.,, manufacturers Of railroad and telegraph supplies and electrical appliances, of Nos. and g Dey street. which may prove to be sen- sational:
 Various rumors are aaoat, the most startling of which Is that there was a big defalcatlon; that the firms cash was Improperly drawn upon for a per- iod extending over several years and that the leak and not the inability to collect outstanding debts, as was be- lieved at the time of the failure, caus- ed the crash.
 The receivers do not deny this, but say they do not want to talk of the matter at present, and that they cannot, because they do not know now just what caused the existing disastrous condition of the firms financial affairs. E. s. Greeley & Co. was incorporated under the laws of the state of Connec- ticut in 1887. The business was estab lished forty years ago by L. G. Tillot- son & Go. General Greeley of Connec- ticut became partner at the close of the war, and succeeded to the position of head of the firm after the death of Mr. Iillotson, In 1884.
 Al Aol three years later its capital stock was stated to be $250,000. It's factory and warehouse were In this city, and it maintained an office at New Haven, where General Greeley lives. The bus mess was once the most extensive in its line.
 At the time of the failure it was stated that the concern had been con- ducted at loss for three years; that Its assets were $20,000 more than its lia- bilities, but that the inability to collect its bills crippled the company.
 The liabilities were said to be $160,000, of which $65,O00 were due for merchant disc and $700OO due on notes, The as- sets were place at s1so,5oc, divided as follows: Accounts receivable, $125,000; IltECIldlulSe, Y4U,UUU, COulcILS Ol InS- tory, $15,00o; office furniture in Connec- ticut, $500 and cash on hand but s10O.
 As the firm was incorporated in Con- necticut and did business in New York; the matter of settling it's affairs was taken to the United States court. Judge Lacombe appointed as receivers for the benefit of the creditors General Greeley and Mr. James w, Sands, respectively the president and secretary of the cor poration.
 The receivers were reticent about talking of the matter yesterday. MT Sands, when asked, said he knew noth- ing of the matter and refused to an- sWer questions. I saw General Greeley later He said:
 "I am surprised that anything relat- ing to this matter has been made pub lie. We are not ready to say anything yet. We will make a full statement in a few weeks"
 Have you discovered that there has been defalcation?"
 T will not say that we have. I will not say that there has not been a de- falcation In fact, we do not know now whether there has or has not been,
 Have you discovered that any part of the s1250OO believed at the time of the failure to be due the company had been paid by those who were believed to be in arrears?'
 Now, you must not ask too many questions. I have endeavored to treat you with consideration, but I cannot say now what can only be stated to the court The whole story will be told to the courts in a few weeks-that is, if there proves to be any story to tell"
 General Greeley added that creditors are scattered throughout the country from Maine to California, and that there are but few creditors in this city.
 General E. S. Greeley was seen at his home on Trumbull street, last evening, in reference to the above publication. He said: "Yes. I saw the story in the Herald this moring A member of that papers staff called on me last sveek and told me that he had understood "thus and so," having in reference to the subject matter of the story you have just handed me. I will repeat as near as can now what I said to him There Is absolutely nothing to give out. We have disposed of the plant and all the stock of the concern and we are now at work on the books. We will make a thorough Investigation of these and there may or may not be some compromising developments. I am not prepared to say who, if any one, has been guilty of misapplying the compa- ny's funds"
 Continuing, General Greeley said: T asked the Herald reporter where he received his information. He replied that it emanated from New Haven. This I could scrarcely understand as all the business had been transacted in New York. I am as much at loss as to the author of the story, as I am as to It's original cause. As an officer of the court I could not give anything for publication until I make the report. But we are Investigating and we will recover property if we find 1t. We want every penny there is for the creditors, and besides that the guilty person should be brought to justice. I shall endeavor to brings both conditions about"
 AT CHRIST CHURCH.