Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-03-23
e. IS BANKRUPT.
Z =
Involuntary Petition Against
! SILLY, Once Cotton King.
Three Of Heaviest Creditors Response
bic for the Action.
Appointment Of Reeeivess-eond Fixed
at 100000

Ney York. March 22-An involun-
tary petition in bankruptcy was filed
to6av In the United States District
court against the firm of Daniel J. Sully
a. Co. composed of Daniel ]. Sully.
Samuel F.. B. Morse. w. r. Pagan and
Edwin Hadley, .Jr., by three creditors.
The latter, S. NJ. Weld & Co, having
a claim amounting. it is alleged. to a
sum in excess of $4,000. ]. Temple
Gwathmey & Co, whose claim is in ex-
cess Of $4,000. and Shearson, Ham,
mill & Co, with u claim in excess OF
100000, alleged that Sully < Go. pur-
chased cotton from them, the price to
be due and determined on March 10
under the rules Of the cotton exchang-
es. On that date the petition states.
Sully & Co. notified the cotton ex-
change and the creditors in question
Of it inability to meet outstanding con-
tracts. The act on the part OF the
firm constituting bankruptcy is given
as the making of a general assignment
on March 10. Judge Holt appointed as
receivers David II. Miller and Henry
w. Taft. fixing their receivers bond
at $2OO.0HO.
Henry w. Taft, appointed co-receiver
with David II. Miller. is a member of
the law firm of Of Strong & Cadwalader.
He is p brother, of William II. Taft,
the secretary of war
Il know nothing about cotton and
do not know Mr.. Sully," said Mr.. Taft.
II understand that Judge Holt sug-
gested that there be a lawyer appointed
as co-receiver and then appointed me.
We cannot take any steps in the mat
ter until I have received official notice
OF my appointment.
Messrs. Miller and Taft, the new re-
ceivers. took formal possession of the
Sully office, tonight. The doors Of the
extensive suite OF offices with one eX-
ception were sealed by the expert ac-
countant, who will, under the super
vision of the receivers, go through the
books and accounts.
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 de-
cided definitely. Mr.. Taft said that
the receivers were ignorant as to tho
methods of bookkeeping in the New
Orleans offices and did not know
whether the situation would require an
Hnclllldry receiver III LOulSlaia. ne
said:
About all we have done so far is to
settle n hard muddle in regard to the
insurance on n large amount of cotton
in StOrehOuSeS here. On account of
the transfer of ownership to us the in
surance on some of the cotton lapsed.
On some of the other cotton the policies
had lapsed without this. it being the
custom to get insurance from time To
time. For about an hour there was Il
large amount of cotton without insur-
ance.
Mr.. Taft was asked If the spot" cot
ton in warehouses amounted to about
10000 bales.
THAT is very likely the figure" he
said. but don't know to n certainty"
S. NJ. Weld. one of the three credi-
tors who brought bankruptcy proceed
ings. tonight, expressed his kindly feel
ings for Mr.. Sully. He said Mr.. Miller
is conceded to be an admirable man
for the position of cO-receiver.
The feeling of the street over the
days happenings was that Sully's
hopes of settling with his creditors
and resuming had practically been de-
strOyed and that the possibilities i'm thu
bankruptcy proceedings We're such as
to make it probable that sensations
would develop later.