Omaha daily bee., 1903-05-21
BIG FRUIT COMPANY FAILS
Concern that Handles Great Part of
the California Crop I'm Hands
of Receiver.

SAN FRANCISCO, May 2o-The Com
mercial community here was startled to-
day by the information received from
Chicago that the Porter Brothers company
which handle a great part Of the fruit
crop Of the state, had been placed in the
hands OF a receiver.
This unexpected act was taken by the
United States district court of the north
ern district of Illinois and, according to
the news given out in this city. was
forced by the demands of the bankers on
the firm at a time when a good part of
its funds are in the hands of fruit growers.
The receiver appointed is Henry l.. Wilson
Of Chicago. and in a telegraphic communi-
cation to. Thomas Lynch and Charles b.
Bills, local agents, he has designated them
as temporary receivers In this city to act
as his representatives until the affairs of
the corporation are Strengthened out.
The Porter Brothers company is one of
the largest houses in the United States.
dealing directly with the growers of fresh
fruits. 1t has branches in New York,
Boston, Chicago. Minneapolis. st. Paul,
San Francisco and agencies in all fruit
producing sections of the country.
All Of the managers have been tele-
graphed to by Receiver Wilson to conduct
the business in his name for the present
as he has u full management. The
amount Of the company's liabilities are
not known, but 1t is assumed by those In
a position to make an estimate that they
may run into the millions.
In his message to the San Francisco
managers, Receiver Wilson stated that the
assets would exceed the liabilities and the
embarrassment of the firm would be only
temporary. 81
Messrs. Lynch and Bills, San Francisco
representatives of the receiver. are now
following directions, making accounts of
the agencies and e~ndeavoring to ascertain
the exact condition of the ~company's af-
fairs. The receiver is a prominent imam
cial man Of Chicago and is looked upon to
protect the interests of the creditors.
A the local offices Of Porter Brothers
1t was announced the failure was due to
the demand of banks for the payment of
several heavy notes.
"It is probable" said Mr.. Bills, the
local manager, that the banks pressed
their claims without giving the Chicago
office notice. In other words the Chicago
ONCE was caught short. No doubt the
company has sufficient money to pay all
it's creditors, but lacked the money with
which to get together
One estimate places the possible liabili-
ties at 100000.
CHICAGO, May 2o.-John r. Adams. one
of the Chicago members of Porter Bros.
said today:
1.-THE receivership proceedings occurred
on May 10. Every EFFORT was made to keer
the matter quiet, and up to today were
successful"
Leonard B. Weed. Benjamin F. Smith
and Thomas F. Beaver, all of Chicago, are
named as the petitioners and alleged In
debtedness for money loaned on several
notes, aggregating $500, and declared the
belief of the petitioners that preferential
trNltment is being accorded other creditors
No details as to the assets or liabilities
were obtainable today. Receiver Wilson
asserted that he had no knowledge con-
corning the condition of the company'i
affairs and would not before Friday. On
that day a meeting of the members of the
firm would be held and his belief was that
the difficulties would be overcome.