The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-03-23
SuIIy & Co Thrown Into h.
voluntary Bankruptcy
SENSATIONS MAY DEVELOP
David n. Miller and Reney w. Taft Are
Appointed Receivers and Take
Charge of the Big Suite
of Offices.

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 & Co., compos-
ed of Daniel j. sully, Samuel F. B. Morse'
w. R. Fagin and Edwin Hadley, Jr., by
three creditors.
The latter, s. M. Wells & Co., having a
claim amounting it is alleged. to sum in
excess of $250,O00; ]. Temple Gwathmey "
Co., whose claim Is in excess of $4,000
and Shearson Hammill & Co, with a
claim in excess of 100000, alleged that
the firm of Sully & Co., also purchased
cotton from them, the prices to be due
and determined March 10, under the rules
of the cotton exchange.
On that day the petition states that the
firm of Sully & Co, notified the cotton
exchange and the creditors in question OF
Its inability to meet outstanding con-
tracts.
The act on the part of the trm consti-
tuting bankruptcy Is given as the making
of general assignment on March 49,
Judge Holt Appoints Receivers.
Judge Holt appointed as receivers Da-
vid II. Miller and Reney w. Taft, fixing
their bonds at 100000
Mr.. Taft is a member of the law firm
of Strong & Cadwalader. He is broth
er of William II. Taft, the secretary OF
| war
| 4 know nothing about cotton and do
| c..Il -rf1 IL
understand that Judge Holt Auggested
there be a lawyer appointed as co-receiv-
! er and he then appointed me. We cannot
take any steps In the matter until have
received official notice of my appoint
ment."
j. Temple Gwathmey, formerly presi-
dent of the cotton exchange, a creditor OF
d. ]. SuIly & Co., made the following
statement: "The proceedings in bankrupt
cy was commenced because 1t was
thought the best to properly conserve all
! efforts for the benefit of all the creditors
and 1t need In no way be considered a
| hostile step against Mr.. Sully or his part
ners. The opportunity to make the pro-
position to settle is just as good now as
! 1t ever was"
| d. ]. Sully said this afternoon: ut Is
too early for me to make a statement
| following the bankruptcy state of af-
fairs. | will have to wait until have
a consultation with my attorneys, whom
expect to meet late this afternoon"
Mr. Shearson petitioner. said an OFF,
cial statement might be made later In the
day on behalf of three petitioners. When
asked II the suit were friendly or un-
friendly. Mr.. Shearson said:
"Oh. I guess you'd better call II
friendly"
Meeting of Creditors.
| of Ctt1It ma late this
evening In the office of the board OF
managers at the Cotton exchange to hear
| further reports from the committee OF
| five appointed yesterday to receive from
Mr.. Sully mis- proposition for settle
ment 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 VIII
| be made through the receivers, who may
call a meeting to submit such offer 10
| the creditors.
Messrs. David Fl. Miller and r. w. Taft
| the new receivers, having filed their bonds
| and been sworn in, took formal posses
| sion of the Sully offices tonight. TIT
| doors of the extensive suites of offices
| with one exception, were sealed by th'
expert accountant, who will under thu
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 in charge of for such shor
time and their knowledge of the firm''
affairs were so meagre, that they coulC
say nothing that would be of interest
Mr. Miller II was reported today, woult
go to New Orleans and take charge OF th'
| New Orleans offices of the firm. bu
| L.I ~ cd
Taft said that the receivers were ignorant
as to the methods Of bookkeeping in th'
New Orleans offices, and whether or not
the situation would require an anclllarl
| in Louisiana. He said:
Are Settling UP Insurance.
| "About all we have done so far is tc
| settle a hard muddle in regard to the in
surance on a large amount of cotton In
storehouses here. On account of the
transfer Of ownership to us the insur-
ance on some cotton lapsed. On some OF
| the other cotton the policies had lapsed
| without this, II being the custom TO get
| insurance from time to time. For about
an hour there was a large amount OF cot
ton without insurance
Mr.. Taft was asked II the spot cot
| ton In warehouses amounted to about 30,-
900 bales
THAT Is very likely the ngure' ne
said, but do not know to a certainty.
| The feeling OF the street over the days
| happenings was that Sully's hopes of set
Ting with his creditors and resuming had
practically been destroyed and that the
possibilities in bankruptcy proceedings
were such as to make It probable that
sensations would develop later.
Section 21 OF the United States bank
ruptcy law states that creditors or other,
Interested may, by order. require any
designated persons. including the bank
rupt to appear and answer questions thai
lead to the determination of the bank
rupt's assets, or TO possible assets not IT
his possession, but which may be recov.
cred by proceedings
1t was beloved that the bankruptcy
proceedings Were brought with the idea
l.of recovering ssomething for the credi
tors from men who were said TO have