Evening star., 1904-03-22
RECEIVERS IN. CHARGE
ASSIGNEE RETIRES BECAUSE OF
EXCEPTION BY CREDITORS.
Sully's Offer for Settlement on 40 Per
Cent Cash Basis and Rest
in Notes Refused.

petitlOu IN bankruptcy was Hleu toudy III
the United States district court against the
firm of Daniel ]. Sully & Co. composed of
Daniel ]. Sully, Samuel F. B. Morse, w. r.
Pagan and Edwin Hadley, jr., by three
creditors.
The latter, S. M. Weld & Co., having a
claim amounting. it is alleged. to a sum in
excess of S2jO.OOO ]. Temple Gwathmey &
Co., whose claim is in excess of $17OOOO,
and Shearson, Hamill & Co., with claim
in excess of 100000. alleged that the firm
of Sully & Co. also purchased cotton from
them the price to be due and determined
on March 49, under the rules of the cotton
exchange.
On that date, the petition states, the firm
of Sully & Co.. notified the cotton exchange
and the creditors in question of its inability
to meet outstanding contracts. The act on
the part of the firm constituting bankrupt
cy is given as the making of a general as
sisnment on March 10. Judge Holt APP
pointed as receivers David II. Miller ana
Henry w. Taft fixing their receivers bonds
at 100000.
Mr. Taft is member of the law firm of
Strong & Cadwalader. He is brother or
William Taft, the Secretary of War.
L know nothing about cotton, and 90
not know Mr. Sully," said Mr.. Taft. i
understand that Judge Holt suggested tna'
there be lawyer appointed as co-recelver,
and he then appointed me. We cannot take
anv steps in the matter until 1 have re-
ceived official notice of my appointment
Effect on the Market.
First prices the cotton exchange were
lower today on rumors that the Suily set
tlement would be unfavorable Opening
nrices were at a decline of 31a4S points on
the old crop months, with the new crop
13a22 points lower. May, opening at 1888,
sold down to 1865 before the call was COM
pleted and July, opening at 1883, dechneo
to 1878 and while there was evidently
very good demand from spot interests ana
some of the larger houses, with puyihs
orders from New England and Europe, ths
liquidation was heavy and the market ruieu
very feverish.
Spot dull; middling uplands 14.00; mid
ding gulf 14.25 ,
IA 600 bales against 1887 last week, and
Sis last year. For the week 5o.OVo pales,
against 64645 last week, and S9,54o last
year Today's receipts at New orleans
were $3.50 bales against 1912 last year.
and at Houston 2,730 bales. against 3,4o-
last year
The announcement that a petition in in
voluntary bankruptcy had been hleo Dy
certain of the creditors against j. ID. Sully
& Co was followed by renewal of iqulda-
ton, and May sold off to 1880 with July
breaking to 1874, net decline OF oiaoo
points From this level there was another
partial rally, and the market around mid
day was less active and somewhat steadier
at a net decline of from so to 40 points.
Effect at New Orleans.
NEW ORLEANS, March 22.-The cotton
market opened steady, but was from ~ to
73 points lower than yesterdays close. The
lower prices were caused by Disappointing
Liverpool cables and the weakness dis
played by the New York market Inc
latest information regarding the Suiiy set
A. loo ha6 n
market had a stronger tone later, and
prices showed substantial recovery.
At long and by no means harmonious
meeting of the creditors of Daniel j. Sully
& Co. late yesterday afternoon commit
tee which had been in conference with MI.
Suly for nearly two hours dehvered ms
proposition for the settlement of the hrm s
obligations This, it was declared, contem-
plated a cash payment of 40 per cent OF
the indebtedness, the balance to be dis
charged in a series of notes, running up to
two years. 1t was not accepted.
While Mr.. Suly announced last night
that the creditors seemed favorably dis
posed toward his plan. there were many OF
the creditors who held out
Attachment From Philadelphia.
Last night from Philadelphia came word
of an attachment issued for Frederick Ze-
raga & Co., to the use of George II. Nc |
Fadden & Bro, against the Suily hrm Jonn |
H. McFadden of the McFadden firm was
chairman of the committee of creditors |
which on the day of the failure and the 1
next day tried to effect some arrangement |
with Mr. Sully. This, it is believed, is only |
the first of many suits which Will be |
brought unless today brings some settle
ment offer which the creditors think is ad- |
equate.
In the discussion yesterday two names |
We're mentioned for the post of assignee 10 |
replace Joseph H. HOadley, against whom |
ba heep much protest. David Miller, |
favored by most of the creditors, was one, !
and Evans r. Dick of Dick Bros. Il Co. the i
other. In view of the protests against Mr' |
Hoadley. the mention of Mr.. Dicks name |
seemed somewhat peculiar to many of the |
creditors, who recalled that Dick Bros. &
Co. were behind the New York, Westchester |
and Boston Railway Company, in which !
Mr. Hoadiey was said to be a eading spirit, !
and that Mr.. Dicks interests were in great !
measure one with Mr.. Hoadleys Mr.. |
Hoadley did not resign yesterday. He was |
not at his office.
Sully's Statement.
Mr. Sully issued the following statement /
last night:
1--WE met committee of the creditors of |
Daniel ]. Sully & Co. this afternoon and |
submitted to them a proposition for the
settlement of the affairs of that firm, |
which, if carried out. will we believe, Sc
cure to the creditors payment of their
ment should be accepted by the creditors. |
to cooperate with them in placing the af-
fairs of the firm in the hands Of persons
admittedly acceptable to all interests.
1--WE have heard that this proposition was |
received in favorable spirit and that, If |
certain legal technicalties be arranged, |
it will probably be accepted. At the mo-
neht we are delaying action, awaiting
solution of these legal questions by the |
counsel representing the various interests |
concerned"
Early yesterday Superintendent King of
the cotton exchange issued a call for !
meeting Of the SuIly creditors after the
close of the exchange. They gathered, |
more than fifty OF them, in the managers |
room, and sat solemny while lawyers
talked and other creditors gathered. In |
the throng were c. CT. Gates of Charles G. |
Gates & Co, who recently introduced Mr.. |
Suly to the stock exchange; John c.
Latham. r. J. Soils of Dick Bros. & Co.;
w D. Springs of j. H. Parker & Co.. said |
to be the largest creditor of the Sully firm, |
and Henry Hentz and George Bailey of
Bailey & Montgomery. About 800 the |
meeting began, with President MacDougall |
of the cotton exchange presiding Ten |
minutes later there was general exodus, |
followed by the announcement of a COM
mttee of five, appointed to consult with |