The San Francisco call., 1904-02-06
PARTNERS SHOW
NO RESENTMENT
Bolton and De Ruyter Feel
Friendly Toward Manager
Who Wrecked Their Firm
CREDITORS ARE SUSPICIOUS
Men for Whom Credit Was EX-
tended Said to Have No
Standing in Financial World

All kinds of rumors filed the air yes
terday concerning the failure Of Bolton,
de Ruyter & Co.. the firm of brokers
that has been forced to the wall un-
able to meet its obligations.
A peculiar state of affairs surrounds
the suspension of the brokerage firm,
and some of the creditors do not hes
itate to say that the members of the
firm may be called upon to explain
before the criminal courts the nature
of their business dealings.
Bolton and de Ruyter preserved a
calm attitude yesterday. They pro-
fessed that the public was not interest
ed in their failure and that they could
not give any information as to any of
their clients or their dealings.
The two members of the firm were
asked to give some explanation as to
the alleged dealings of Richard Genung,
their manager, which are supposed to,
have caused a loss TO the firm resulting
in insolvency. Mr.. de Ruyter said:
We do not think that Genung has been
guilty OF any action that would hold him in
law. He simply used the credit OF the firm
10 DO business on behalf of certain people.
Those people were not able to meet the OBJ
legations and the loss fell upon US. 1t MAJ
be called breach of faith bad judgment
on the part of Genung to money to
speculate for OF customers Our
bookkeeper. Daniel O'Conncll was cognizant
OF what was going on and We think that he
AFFAIRS We admit that have not exercised
that business acumen that should have
zone. Our business is peculiar one and
money Is won or lost rapidly. Yes, perhaps.
we should have known just how we stood
every day. but did not
Redington. the broker and real estate dealer
was given a credit OF $4,000 by GenunS and
the loss falls on us. We personally would
not have given Redington or any one else any
such credit. We do not know whether Red
lhston can make good the loss we have been
called upon to meet for him
GENUNG REMAINS SILENT.
Genung declined yesterday to make
any statement as to why he saw fit to
extend the credit of Bolton, de Ruyter
& Co. to a man who has the reputa-
ton of being "a curbstone dealer"
1t is common talk in stock and bond
circles that Redington has no financial
standing. He has wealthy connections
and was worth some money few wears
ago. Whether Genung expected to
share in any profits that might accrue
in the deals for Redington is a matter
of surmise.
The fact remains that Genung. man
ager for Bolton, de Ruyter G. Co, ex-
tended the credit of the firm for $40 900
in behalf of man who had no financial
standing in the stock market.
In the language of the street, Red
ington did his business in his hat"
He received his mail at All California
street, and his ''ofice" expenses did not
exceed SO per month.
Men of financial standing find it diff
cult to induce brokerage firms to ex-
tend credit for them on stock transac-
tions. Yet Genung, manager for Bolton,
de Ruyter & Co, carried" Redington
for more than eighteen months to the
extent of $40.O 900, and the principals Of
the insolvent firm say they did not
know of the transactions until last
Wednesday,
CLOSE EASTERN ACCOUNTS.
Bolton, de Ruyter & Co. telegraphed
to Eastern brokers on Thursday TO close
out their accounts. The stock held by
the insolvent firm in the East was sold
yesterday at the early morning New
York quotations. 1t Will not be known
for some days whether Bolton, de Ruy-
ter & Co. owes any money to its East
ern correspondents or whether the firms
in the East will have any balance to
hand over to the creditors of the in
solvent local firm.
Bolton and de Ruyter admitted yes
terday that they had not exercised the
vigilance that ordinary business affairs
demand. They excused themselves on
the ground that "Genung was their
manager and "O'Connell their book
keeper" and that they were busy all
the time in looking after the corre-
spondence and the stock busines on
change"
The experts who are working on the
books of Bolton &, de~Ruyter will not
finish their work for some days. but it
is known that Genung extended the
credit of the firm for certain persons
who have had no financial standing for
nearly two years.
The creditors of Bolton. de Ruyter &
Co. want to know why the principals of
the insolvent firm did not trouble them
selves to find out just how they stood
with those who invested their money
in good faith.
WILL NOT PROSECUTE GENUNG.
Bolton and de Ruyter stated yester-
day that they did not propose to take
any steps against Genung, their man
ager. They characterized his actions
as bad judgment" but showed no re-
sentiment against the man whom they
accuse of wrecking their business ca
reer
Attorney T. c. Van Ness. who repre-
sents Bolton, de Ruyter & Co, said
yesterday that he had nothing new to
give out for publication. He repeated
his assertion that his clients did not
know until last Wednesday that their