New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-26
BIG FAILURE IN BOSTON.
SEVENTY-ONE BANKS HIT.
Banking Firm Files Petition, zoith
S1,714,S68 Liabilities.

Boston, May 25.-seventy-ons banks and
trust companies. most of them in Massachu-
setts. but several situated in various parts Of
the country, among the creditors of the
banking firm of Burnett Cummings & Co. Of
No. 43 Nik-st., this city, which to-day filed a
voluntary petition in bankruptcy in the United
States District Court. with liabilities placed at
Sl71436S The assets stated to be uncer-
tain, but the creditors have been given to un-
derstand that they will not exceed 100000 if,
indeed, they prove to be OF any value. The
bankruptcy petition is the heaviest ever filed in
this district.
]. T. Auebaoh, counsel for the bankrupt firm,
said that the cause Of the failure was the build
ing and financing Of the Concord and Boston
Street Railway Company. the Mddleboro,
Wareham apd Buzzard's Bay Street Rail-
way Company, the Lowell and Boston
Street Railway and the Bristol County Rail
way Company. These roads were in thinly set
tied districts and were unable to make advan-
tageous connections with roads running to Bos-
ton. The four companies were placed in the
hands Of receivers. and their notes became
valueless. Furthermore, the Massachusetts Sc
curities CompRny's bonds, which were secured
by obligations of the railways lost value and
entatled losses the firm. Mr.. Auebach stated
also that the buying of the Hampden Trust
Company of Springfield, and the Taunton Safe
Of which unknown to the firm. We're in serious
| financial straits and which were placed in the
hands of receivers hastened the firms financial
embarrassment The refusal Of the extension
Of credit by banks then made continuance in
I business impossible.
The secured creditors number eighty-seven
and the unsecured eighty-one. There are thirty
two Massachusetts savings banks in the list o:
creditors, and thirteen Massachusetts national
banks 1t is understood that the securities
given the banks for their loans were bonds OF
/ the Massachusetts, Securities Company, which,
/ in turn were secured by notes of the bankrupt
electric railways One of the largest creditors is
the Worcester FiYs Cent Savings Bank, of Wor-
cester, with claim Of SSO600.
Among the Western institutions affected are
the Chicago Savings Bank, So 039; the State
Savings Bank, Ann Arbor, Mich. $1.345; the
Western Trust and Savings Bank, Chicago
S11 1896: Fort Dearborn National Bank, Chi
cago, $7,S6S. and the State Bank of Chicago.
81 425.
The firm of Burnett Cummings & Co. is COM
posed Of Archie c. Burnett and Charles c. Cum
mings. I'd. The firm has been in business three
and a half years. succeeding the firm of c. s.
Cummings s. Co. The State Savings Bank Com
nissioners said this afternoon that so far as
| their Investigations had gone The savings banks
which lent money the Massachusetts Securi-
ties bonds had not violated any laws.
Worcester, Mass, May 25.-Chandler Bull
lock, counsel for the Worcester Five Cents
Savings Bank. said tonight to a reporter for
THE Telegram" that his banks claim against
Burnett, Cummings & Co is fully secured
The difficulties of Burnett, Cummings & Co.
have been known to bankers in Boston and this
city for more than a year 1t is not believed
that any local institution financial interest
! is among the creditors.