The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-08-02
BUSINESS GREW TO DEATH.
The Phillips Commission Company
Has Suspended Operations.
VOLUME OF TRANSACTIONS TOO LARGE
Clerical Force Was Inadequate and as q
Result Everything Got Tangled
on the Books.

Chicago, August Board OF trnde and
business circles generally We're startled to-
day by the announcement that the George
ii. Phillips company which became famous
through Its operations on the Chicago corn
exchange during the last year transferred
all It's open trades TO McReynolds & Co.
II was at first rumored that large de-
falcatlon Ind been discovered Ia an ex.
animation OF the books, but this proved
untrue and found Its only foundation IN
the fact that one OF the head bookkeepers
WAS confined to his home by illness. At
torney John Goodwin, who Is representa-
tive Of the law arm of Black & Goodwin.
has taken charge of the conpany's affairs,
the sole reason for temporarily suspending
business being lack OF facilities for the
proper clerical needs OF the concern which
mad acquired an enormous commission
trade.
The tangled condition Of the books be
came 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 a detailed
account Of the entire transaction. large
force was then put to work on the books
and In their efforts TO disentangle the mul.
itudlnous trades 1t became apparent that
every trade on the eompany's books since
November, 1900, would have TO be checked
over, entailing an enormous amount OF
work.
As the FIRMS business kept increasing AZ
a remarkable rate, the machinery OF tho
house was found Inadequate and at mid
mSht on July 81 IL was decided 10 simply
transfer all trades and for the time being
throw the business OF the house In other
hands until a complete. new set OF books
have been complied. Mr. Phillips. willis
reyrettlng the necessity OF this action, said
10 him.
business" he said. "On the contrary, we
ehail execute Wll orders, but will have
q ask that tbs usual margins accompany
all orders until our BOOKS are checked
over /"
Following is statement given 70 the
Associated Press by Attorney Goodwin for
'The company was Incorporated in No
yeHher, 1900, with a capital OF $4,000.
Tle business grew 20 rapldly that IN the
efcased to $4,000 and with that increase
came large additional increase In business.
81 the onice force was Simply over.
v'helmed. We have been doing tie largest
commission business 81 any house In the
world, but II had recently come 20 the
attention OF the firm that che records Of
the TRANSACTIONS were not being kept In the
proper shape for such deals About .
weak ago expert accountants were put 70
work on the books. / have been over the
legal end OF the firms affairs and have
found II absolutely correct The expert
accountants found that II would be abso-
iutely necessary 10 make new set OF
books dating from January I, 1900, ana
checking every item az the immense busi-
ness The errors were apparently made
without partiailty. credits being deblted
and vice versa BEt up 10 ,. m. yester
DAY. after 4 weeks work ami after an
errors had been corrected up TO that time
the hooks showed the Arm 70 be absolutely
solvent"
The announcement Of the above TURF OF
tnhirs caused scarcely ripple on the board
OF trade today.