Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-08-02
CORN kings BOOKS
ARE IN A BAD TANGLE.
GEORGE II. PHILLIPS TRANSFERS
ALL OPEN TRADES on THE
CHICAGO BOARD TO
OTHER BROKERS'.
CAUSED A GREAT FURRY
TEMPORARY SUSPENSION ATTR,B-
UTED TO LACK OF stFEi.
GENT CLERICAL FORCE.

CHICAGO, August Hoard OF trade
and business circles were startled to-
day by the announcement that the
came famous through its pool opera
tions in the Chicago corn pit during
the last year. had transferred all its
open trades to McReynolds a Co. 1t
was at first rumored that large de-
faleation had been discovered in an ex-
animation of the books but this proved
untrue, having It's only foundation In
the fact that one of the head book
keepers was confined to his home by
Illness.
Lack OF facilities for the proper cler-
ical needs of the concern. which had
acquired an enormous commission
trade. according to a statement made To-
Attorney John s Goodwin. who. as a
representative of the law firm of Black
& Goodwin, has taken charge of the
company's affairs, was the sole reason
for temporarily suspending business.
The tangled condition of the books
became apparent some time ago, when
the board of trade directors ruled that
the Phillips Company should furnish
to each member of the May corn pool
detailed account of the entire transac-
ton. A large force was then put to
work on the books and In their efforts
to disentangle the multitudinons trades
| it became apparent that every trade
on the company's books since Novem-
ber 1900, would have to be checked
over, entailing an enormous amount of
work.
VIII Not Quit Business.
As the firms business kept increasing
at reasonable rate. the machinery OF
the house was found inadequate, and at
midnight on July 81, 1t was decided to
transfer all trades, and for the time be-
| ing. throw the business to the house
| into other hands until a complete new
set of books shall have been compiled.
Mr. Phillips, while regretting the neces-
sity of this action, said it was absolute
ly the only course open to him. This
does not mean that we are quitting
business" he said. "On the contrary.
we will execute all orders, but will have
to ask that usual margins accompany
all orders until our books are checked
over"
"The company was Incorporated IN
November, 1900, with capital OF $50
900. The business grew so rapidly that
in the spring of this year the capital
was increased to $250.000, and, with
that increase, came still additional in
crease in business, so that the once
force was overwhelmed. We have been
doing the largest commission business
of any house in the world. but 1t had
recently come to the attention or the
firm that the records of the transactions
were not being kept in the proper shape
for such deals. About week ago ex-
pert accountants were put to work up
on the books. / have gone over the
legal end of the firms affairs, and have
found it absolutely correct.
The Books show Firm solvent.
"The expert accountants found that
It would be absolutely necessary 10
make a new set of books, dating from
January /, 1900, and checking every
item of the immense business. The
errors were, apparently, made without
partiality. credits being debited and
vice versa.
up to 4 p. m. yesterday, after
weeks work and after all errors had
been corrected up to that time the
books showed the firm to be absolutely
solvent. On my advice they cut OFF.
however, all old business at midnight
last night-the last day Of the month
and transferred all their open trades
to McReynolds, and every trade made
Yesterday was made at profit for the
customers.
Following is a statement given the
Associated Press by Attorney Goodwin
for Mr.. Phillips:
Eve are sending out circular asking
all our customers to send us state
ment of their claims against the com
pany, so that we may have them
audited and use them in preparing
new set of books with the expectation
that. unless something happens which
does not seem probable, we shall take
care of every claim and proceed with
the business the heretofore. The ac-
countant, so far, has found no evidence
whatever of criminal irreguIarity, bat
simply mistakes due to the immense
amount of business handled with In
adequate facilities for caring therefor.
Caused Scarcely Ripple.
The announcement of the above turn
of affairs caused scarcely a ripple in
the Board of Trade markets. Corn
eased about as, but soon regained the
loss. The wheat market was but
slightly affected and oats followed the
course of the corn market.