The Providence news. (Providence [R.I.]) 1891-1906, 1902-02-06
q CASHIERS
WERE DUPED.
Gst-Rlch- Quick Concern Had
Many Bank Officers on List.
MORGAN & co. DODGE INQUIRY.
Brother Of II: hssi Of the Firm Refuses 10
Testify and May Be Punished
Tor Contempt.
MORGAN & co. DODGE INQUIRY.

New York, Feb 6--Every possible OBJ
| stacle is being thrown In the way Of
creditors who are tryins 20 trace the
assets Of the defgnct brokerage firm of
g. W. Morgan & Co.
The hrm, AT the time OF it's COLLAPSE A
! little moro than year ago, consisted only
] OF Charles w. Morgan, although hts
I brother. William J Morgan. was "a mem.
Der OF The concern until aboIt year be-
forf the failure The creditors are now
trying TO find out how he obtained pos
session OF sane of the money which was
supposed 20 belong TO his brother
He refuses TO tell and steps we're taken
Yesterday to compel him to show cause
why he should not he punished for con-
tempt OF The United States district court.
Many or the creditors 6f the firm. how
ever. arr making no effort 10 recover
their losses These are NUMBER ~
cashiers Of New York banks. who all
lured by The advertisements OF the get
flch auick order. speculated through the
A POLICE RAID.
The prlncipsl office OF &. W. Morgan A.
Co, In the Empire building. was raided
hy the police on Dec g. 1900 many per-
sons having complained that they had
iost money Ia dealing with the concern,
which Was accused OF doing business on
ths get rich quick plan.
charles W. Morgan. who WAS a mem
Der of the Consolidated exchange was
arrested aud later Lewis g. Van Ripper
ana John B Mckenzie. discretionary
brokers' who had induced many persons
10 deposit money with him 20 cover stock
transactions, were taken into custody.
The criminal proceedings. however, were,
never brought to trial.
On The day Following his arrest, Morgan
made A general assignment to Bert Han
son. The assets the latter was able to
discover amounted To only about $1,000
although a short time before the failure
Morgan had been considered worth half a
million. lie lived I'm fne style a No. e27
West End avenue and had summer
home in Bensonhurst IL was found,
however. that most OF his real estate was
In the name of his wife.
BANK CASHIERS CAUGHT.
The claims OF creditors presented 10 the
assignee amounted "a sS0ea but law
Ners who have Investigated his affairs be-
I4Ne that small Speculators were out
One OF the lawyers said yesterday 10 a
reporter that many creditors had nor pre-
sented their claims because they did not
wish Il known that they had been dealing
There were $50 accounts on the books
OF the concern, said the lawyer Among
the creditors were twenty-three cashiers
men could not afford 10 have IL known
that they had been specHiating Most
OF them had been trading under fictitious
losses
When the assignee reported the true
Of affairs, several creditors filed
\ petition I'm the United States district |
court 60 have Morgan declared bank |
rupt. benjamin. Barker was appointed |
trustee Ia bankruptcy and he retained |
tielschmsn Fox as counsel, while Niles 1
Z Johnson appes rcd for Morgan. The /
,ase was sent Ia Referee ian Bankruptcy 4
Theodor Aub, of NO. lt9 Broadway.
MAY BE PUNISHED FOR CONTEMPT.
Several bearings have been held before
Referee Aub. William j. Morgan was /
before him yesterday as witness in 4
he 90 sc.
Within a little more than a year Charles
". and William !. Morgan appear TO
rave exchanged positions from a financial
standpoint. Ths former. who UP TO the
ime OF his failure posed as a wealthy |
nan, has moved from his West End ave- |
lut home 10 a modest fiat al No SOC West |
street William J. Morgan on !
he CONTRARY has branched ont as a real
stare operator. He has an Office in Ben |
onhurst. where he built dozen or more
louses last summer.