The Savannah morning news., 1901-12-05
THE RISE IN COTTON
CARRIED WOODS g. MALONE, COT
TON FACTORS, TO THE WALL.
TO DECLARE THEM BANKRUPT
CREDITORS HAVE FILED PETI-
TION IN UNITED STATES COURT.

Involuntary Bankruptcy Proceed
ings Instituted by Garrard IS Mel
drim. Representing Some of the
Firms Country Creditors, Holding
Claims AggregatinE S1,60O-Lin-
bilfties Are Reported to BE Be
tween $4,000 and 100000, With
Assets $4,000 Less-Judge Spcer
Asked to Appoint a Receiver to
Take Charge of the Business.
The expected of the last two days
happened last night, when a petition
in involuntary bankruptcy against
Woods & Malone, cotton factors, was
filed in the Office of the clerk of the
United States District Court. The hear
ing has been set for Dec. 10.
The petition was filed by Garrard &
Meldrim, on behalf of a number of
country creditors. The creditors
named in the petition rep
resent claims amounting to
only about $780, but it is currently
understood that the liabilities of the
firm are much larger, the estimates
of those, with the exception of the par
ties Immediately at interest, best in a
position to know, placing the amount
at between $3.50, 900 and $16oOO0.
Col. William Garrard left
for Macon, carrying with him for the
approval of Judge Speer, a petition for
temporary receiver, filed at the same
time as the petition in bankruptcy.
On 0f he
claims are represented in the petition,
it is alleged that the firm of Woods &
Malone is in a bankrupt and insolvent
condition, and that it is unable to meet
the liabilities which are now due. 1t
is on this ground that the order de-
claring the firm bankrupt and asking
the administration of it's estate in
bankruptcy, is asked.
The firm is composed of Clayton r.
Woods, Charles B. Malone and 7.
Lewis Malone, and has generally been
regarded as one Of the leading and
most solvent in the cotton factorage
business in Savannah. 1t succeeded
the old firm of Garrett, Woods & Co.,
for many years cotton factors and
commission merchants on the Bay.
No one of the members of the firm
was at its Office yesterday. and a state
iiSill vi It's assets ana llaDllLleS could
not be secured. Mr.. W. l.. Gignilliat,
of Gignilliat & Stubs, legal represen-
tatives and advisers of Woods & Ma
lone, declined to discuss the situation,
or to make any statement. The cur
rent report is that the assets of the
firm are $4,000 behind the liabilities.
For two days the knowledge that
the firm was in condition approx
mating bankruptcy has been common
and that some of the creditors would
institute bankruptcy proceedings had
been expected. To those on the inside
the announcement that this has been
done will occasion no surprise.
The understanding is that the firm
had been specializing in cotton and that
1t was caught short of the market on
Tuesday, when cotton, under the i'm
pulse of the government estimate that
the crop would be under 10000, 900
bales, jumped "a points skyward. This
rise in cotton was not the sole cause of
the firms insolvency; it was rather the
elimination of a series of misfortunes
by which Woods & Malone have been
recently attacked.
The local banks, of course, are among
the creditors of the firm, but the i'm
preston seems to be that they hold
rather less of its paper than would
naturally have been expected. The
CuStOHleIS Oh the urn throughout Sd~
vannah's section of the cotton belt will
be the principal sufferers should the
assets not suffice to extinguish the liza
bilities.
Since the rumors of the firms insol-
vency began to be current, two days
ago, the country creditors have been
placing their accounts in the hands of
counsel for collection, and it is proba-
BILE that the greater proportion of these
are now represented by Savannah law
yers.
Col. Garrard will appear be-
fore Judge Speer to-day and
present his application for the appoint
ment of a receiver named.
1t is expected that an effort will be
made to straighten out the financial
difficulties of the firm. and permit it
to continue in business.