The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-06-01
FLIGHT FOLLOWED BY FAILURE
DRY GOODS FIRM At ATLANTA GOES
TO THE WALL.

Junior Partner Alleged TO Have
Lost the Firms Money by Secret
Speculation in Wheat-MOrtEaEes
Aggregating s95,432 Filed by
CreditOrs-MissinG Partner Sup
posed to Have Carried $4,000 in
Cash Away with Him.
Atlanta, Ga. May Sl.-A sensation was
created here to-day by the announcement
of the failure of the wholesale dry goods
firm of Moody & Brewster and the flight
and defalcation of George S. Brewster,
the Junior member of the firm.
Mr.. Brewster made away with approx
mately $4,000. 1t is not thought that he
took much of the missing money off with
him, however, but his partner declares
that he had already dissipated it in spec
ulation.
The crash and defalcation came to pub
lie light through the filing of a number of
MORTGAGES to secure local creditors this
morning. These mortgages aggregate $685.
432.S and are secured by the stock on
hand in the warehouse of the firm, on
Lloyd street.
MIR. Brewster, who was a well known
figure in local business circles, left town
last Saturday Since that time he has not
been seen here, and Mr. Moody to-day
said he suspected that he was either now
in Canada or well on his way there.
The first information Of the trouble Mr.
Moody had, according to his statement to-
day, was yesterday, when he received
note signed by his absent partner giving
him the details of his overdrafts and spec
ulations. This note was written on last
Saturday.
Mr.. Moody would not consent to allow
its publication in fun at this time but said
that in it MIR. Brewster acknowledged
tfat in April he had discounted $50, 900
worth of the firms paper in New York
and later he had drawn $25 600 of the firms
money from bank with which to continue
his speculation in wheat. He wound up
by saying that he was going to leave this
vicinity for a while al least
Before going Mr.. Moody said Brewster
got $4,000, or thereabouts, from local
banks on the firms credit. 1t is probable
that he took this sum or part of 1t along
with HIM to pay expenses.
The mortgages given to cover Brewster's
loans to-day were as follows:
Rosser & Carter .....................$ 900 90
Bowery Banking Company 49, 500 90
Marietta Trust and Banking Co. 5000 90
Capital City Bank NEUTRALITY-SUSPICIOUS.. $4,000 90
Exchange Bank ACKNOWLEDGEMENTS. 5000 90
o. A. Smith & Co.................... 20,5l5 90
Bacon & Co .....t...,.,............ $500 %
Nunnally Bros ...................... 917 81
Marietta Guano Company ......... 5000 90
The firm of Moody & Brewster has been
in the wholesale dry goods business only
since last December.
Previous to embarking in that line, they
had been for some years doing a private
banking business and were also dealing
in fertilizers and real estate
Both members of the firm We're regarded
as exceptional business men, and always
enjoyed a high credit
Mr.. Brewster was a deacon in Grace
Methodist Church, and lived in a beauti-
full home on Jackson street. He left be-
hind him a wife and several small chill
dren.
Mr. Moody does not claim that his part
ner has embezzied but comedies that as a
| partner he has a right to use the firms
name to secure credit.
Mr. Brewster was not given to specula-
ton, but his friends think that the recent
phenomenal rise in wheat caused him to
think that he could make a fortune sure
| by the use of ready cash, and he risked
everything to make the turn.
AS near as can be Appropriated to-
night, the liabilities of the firm will run
beyond S250,0OO probably $500 900, while the
assets do not amount to more than $125 COO.
receiver win probably be appointed
at the request of the unsecured creditors,
who are scattered all over the country
The house, although established only last
December was handling a large volume
| of goods, and, as it now appears, owes
most, if not all its connections, on open
account.
AS result of of the failure Of Moody &
Brewster, Smilly & Co. of 1853 Decatur
street also failed for $500
1t is said that the firm owes $150OOO in
| Georgia alone
I Mr.. Brewster, in the note he left Mr.
Moody, stated that he lost $4,000 in spec
ulation in Atlanta and $4,000 in New York.
Mr., Moody said to-day that the firm has
lost $4,000 in speculation in cotton and
wheat
The firm, while engaged in the whole
sale dry goods business, also operated I'M
der the firm names of Southern Pacific
Guano Company, Moody Loan & Banking
/ Company and T.. A. Smiley & co.
Mr.. Smiley, who has also failed. is
/ brother-in-law of Mr. Moody.
! The bill for a receiver makes many al
! legations and an amendment will be filed
tomorrow morning, which is said to be
! of sensational character.
ELECTRIC LIGHT PLANT SOLD.