The San Francisco call., 1904-02-05

The creditors aof the suspended
ployes of Bolton. de Duyter Co.
& Co. met yesterday. They appointed
a committee Of three to investigate and
heard a preliminary statement Of the
financial condition Of the house, which.
as summarized by Thomas c. Van
Ness, attorney for the brokers, shows a
net Indebtedness of $4,000 and net as
sets amounting TO s9s,OOO
After the meeting Attorney Van Ness
made a statement. He said the fall
ure was due, as reported in The Call
yesterday morning, primarily TO the
failure of Sharp & Bryan and sec
ondarily to the actions of trusted en-
ployes Of Bolton, De Ruyter Co.
The employees referred to by Mr.. Van
Ness are Rich.rd Genung, manager,
and Daniel O'Connell, the former book
keeper. Mr.. Van Ness estimated the
loss by manipulations Of Genung and
O'Connen at $4,000.
Later in the afternoon, being inter
viewed by a reporter Of The Call,
Genung, after having the statements
Of Mr.. Van Ness repeated to him and
being offered a chance to make a reply,
positively refused to say one word for
publication. Mr.. de Ruyter, who was
present at this interview, said in an
swer TO a question that the firm had
10 intention of proceeding against
Genung or OCOnnelL
The creditors, after their meeting,
were not very sanguine, as they openly
expressed their opinions that they
would not receive any large percentage
of their total claims. The assets are
largely book accounts against persons
in this city who have done business
with the firm in ordering purchases of
stocks or other securities on margins
and who are owing sums of varying
size to make good stocks that are re-
ported to be held by brokers in New
York and office fixtures. There is also
a claim for S3S, 900 held by the firm as
an asset that is based on chattel and
second mortgage on land and crops in
California. One person, whose name
was not given out by the firm, is re-
ported to owe the sum of $4,000 on
margins. This claim is reported to be
good. The stocks that are in the East
were purchased in the names Of New
York brokers, but are reported to be
available as assets.
Mr.. de Ruyter claimed yesterday af-
ternoon that his firm would be able
to eventually pay every dollar to cred
itors. but time would be needed to ac-
complish this.
VAN NESS EXPLAINS.
The chief interest in the proceedings
of the day was attached to the detailed
statements of Attorney Van Ness, in
substance as follows:
l called the meeting OF creditors to order
to-day and explained what the causes OF sus-
pension were. These were the failure OF
Sharp & Bryan, which taxed the resources OF
Bolton de Ruyter & Co. and the reduction
of the cash capital by Genung, who allowed
credits 10 run on the books of the firm. on
which there are losses of $4,000 to $50, 900
TO pay, without any return TO the nrm. The
partners found that there was no cash re-
naming with which TO carry on business and.
as TO go on would be operating in the marke
against their customers, advised suspension
The preliminary report OF the oookkeepers
This made the net liabilities about $90,UOO
and the assets about $4,000. OF which S1s-
900 on the books is bad, but S9s,OOO Is prooa-
bly, good. The present available net assets,
excluding chattel and second mortgage for
S3s. 600. is about 100000. II the $4,000 is
lar for dollar. The liabilities and assets as
quoted. 1 would not be understood saying
are the total liabilities and assets. but they
are the net ones. The real figures might be
$500. 900 and 5000 as represented on the
books. The net figures are representative of
the conditions existing II the assets were TO
be sold to-day.
will explain how Genung could operate as
he has done Suppose a friend of his came in
and asked to have chance TO gamble and
said that he had money, but asked Genung
to put up. the friend promising to make good
for any loss Possibly the friend might prom
Use TO give Genung half of the profits for the
credit. Genung would then take the money OF
Bolton, De Ruyter & Co. and put 1t UP. II