The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-23
Miller and Taft Give
Bonds for 100000.
THE CREDITORS MOVE
An Involuntary Petition in Bankruptcy
Filed Against SuIly's Firm by
Three Parties Whose Claims
are Over Half a
Million.
(By the Associated Press

(By the Associated Press
New York, March 22.-An involuntary
petition in bankruptcy was filed today in
the United States District Court against
the firm of Daniel j. Sully e Company
composed of Daniel ]. sully. Samuel +.
B. Morse, W. X. Fagan, and Edwin Had
ley, Jr., by three creditors.
The latter. S. M. Weld & Company hav-
ing a claim amounting, it is alleged to
a sum III excess of $250,00 j. Temple
Gwathmey & Company, whose claim is in
excess OF $4,000, and Shearson. Hamill
& Company with a claim in excess of
100000, alleged that the firm of Sully
& Company, also purchased cotton from
them, the price TO be due and determined
on March IS, under the rules of the Cot
ton Exchange. On that date petition
states, the firm of Sully Company, notl-
fied the Cotton Exchange and the creol-
tors in question of its inability to meet
outstanding contracts. The act on the
part of the firm constituting bankruptcy,
is given as the making of a general as
signment on March 10. Judge Holt ap-
pointed as receiers David H. Miller and
Henry w. Taft, fixing their receivers
bends at 100000.
| The receivers filed their bonus and were
sworn in this afternoon.
Mr.. Taft is a member of the law firm
! of Strong & Cadwalader. He is 4 brother
of William Taft, the Secretary of War.
Il know nothing about cotton and I
do not know Mr.. Sully," said Mr.. TAFT.
II understand that Judge Holt suggested
that there be a lawyer appointed as CO.
receiver and he then appointed me"
Mr. Sully said this afternoon:
1t is too early for me to make a state
ment following the bankruptcy turn to
affairs. There are too many ramihca-
ticns of law involved, about which / know
but little, at all events l shall have to
wait until / have a consultation with
my attorneys"
Mr.. Shearson, one of the petitioners,
said that an official statement might be
made later on behalf of the three petit
icrers.
When asked if the suit were friendly
OF unfriendly, Mr. Snearson said;
"Oh, / guess you'd better call it friend
w."
A statement was made this afternoon
by j. Temple Gwathmey formerly pres-
dent of the Cotton Exchange, one of the
creditors of d. j. Sully & Company. 1t
is as follows:
Tho proceedings in bankruptcy were
commenced because it was thought to be
the best way properly to conserve all the
efforts for the benefits Of ell the credi-
tors, and In no way need be considered
a hostile step against Mr.. Sully or his
partners. The opportunity to make the
proposition to settle is just as good now
as it ever was.
Creditors Of Sully & Company met late
this afternoon in the office of the Board
of Managers at the Cotton Exchange to
hear further reports from the commit
tee of five appointed yesterday to receive
from Mr.. Sully his proposition for a set
tlement. When the committee reported
that no additional proposition had been
made by Sully the creditors decided to
adjourn without date.
1t is understood that if Mr.. Sully has
any other propositions to make they will
be made through the receivers, who may
call a meeting to submit such offer to the
creditors.
Messrs. Miller and Taft, the new re-
celvers, took formal possession of the
Sully Offices tonight. The doors of the
extensive suite of offices, with one excep-
tion, were sealed by the expert account
ant, who will, under the supervision of
the receivers, go through the books and
accounts.
Messrs. Miller and Taft together made
a short statement TO the effect that they
had been for such a short time in charge,
and their knowledge of the firms affairs
was SO meagre, that they could say moth
ing that would be of interest Mr. Miller,
it was reported today, would go to New
Orleans at once and take charge of the
New Orleans offices of the firm, but he
said he had not decided definitely. Mr..
TAFT said that the receivers were ignor-
ant as to the methods of bookkeeping in
the New Orleans offices, and whether or
not the situation would require an ancil-
larry receiver in Louisiana, he said:
About all we have done so far is to
settle a hard nuddle in regard to the
insurance on large amount Of cotton in
store houses here. On account of the
transfer of ownership to us the insur-
ance on some of the cotton lapsed.
'On some of the other cotton the poll
cies had lapsed without this. it being the
custom to get insurance from time to
time. For about an hour there was a
large amount of cotton without insur-
ance"
Mr.. Taft was asked if 'spt'' cotton in
warehouses amounted to about thirty
thousand bales. THAT is very likely the
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