The San Francisco call., 1905-06-27
Knight, Donnelly
& Go. Forced Into
Bankruptcy.
Closing Grain Prices
Show Net Liabilities
of $3.50, 900.
Belief That the Collapse Will
Not Seriously Affect the
Stock Markets.

CHICAGO June 26.-Knight, Donnelly
& Co. one of the most widely known
grain and stock brokerage firms in the
West and Of reputed financial standing
throughout the business world, became
involved in involutary bankruptcy pro-
ceedings in the United States District
Court late this afternoon. The petition
ing creditors. with claims amounting to
$4,000 filed the petition before Judge
Lands. and Edward {. Potter was ap-
pointed receiver, in bonds of 100000. The
Bankruptcy proceedings are believed to be
friendly because of the presence in
court Of Attorney Silas H. Strawn, repre-
asonting r. H. Donnelly one of the mem
bers Of the firm The case was carried
through the court burriedly, and after
the Proceedings weiJ completed but little
information could be obtained from those
interested.
According to the petition of the re-
ceiver. there is $3.50 ooO outstanding in va
Iious kinds of grain. stock and bond
transactions- Attorney Whitney. for the
brokerage firm declared tonight that the
failure would cause little excitement on
the Chicago Board of Trade or the New
York Stock Exchange tomorrow morn
ing, as the trades We're so evenly bal
shced that the transactions on the long
side of the market would to a great ex-
tent offset the trades On the short side
For every transaction made by the
firm, said Whitney, the Chicago banks
hold collateral, and if the banks sell out
at the present market price money will
be gained instead of lost
The petition for the appointment Of a
receiver sets forth that if an attempt be
not Immediately made to realize on the
S250,000 worth Of transactions the deal will
necessarily have 10 be closedf out at a
great sacrifice.
r. r. Donnelly. senior member of the
firm, declared tonight that no one would
be harmed financially, but he refused to
give any reason for the failure of the
company. He said:
LAS ne-rly as 1 can estimate tonight,
our liabilities are about s250.0oO and our
assets about 100000 This estimate is
made by taking as a basis the closing
prices of stocks and grain to-day AS
soon as Receiver Potter cleans up our af-
fairs the firm Of Knight. Donnelly & Co.
viii be dissolved"
The firm had wires running to New
York, St. Louis and o,her leauiag finan-
cisl centers of the country
TERRE HACTE, Ind, June 2s-The
Vigo County National Bank issued the
statement to-day that Cashier CONF
manthes has resigned and that a short
age Of about $4,000 had been discovered
in his accounts. Conzmanthes has turned
over securities amounting to $50, 900.
Later run" upon the bank was started,
but all demands for deposits were
promptly met
PHILADELPHIA, June 2s.-J. Hamp-
ton Moore was to-day appointed perma-
nent receiver for the City Trust Safe De-
post and Surety Company of this city.
Moore was formerly chief of the Bureau
of Manufactures in Washington, and be-
came president Of the City Trust three
weeks ago.
CLINTON, Mo, June 2s.-The Circuit
Court to-day appointed John B. Egger,
q banker Of Appleton City. receiver of
the closed Salmon Bank Cashier Thomas
NJ. Cassr, who was arrested yesterday,
charged with forgery, is i'll at his home.
under guard.
CINCINNATI, June 26.-Holzman & Co.,
brokers and bankers, who recently as
signed. were to-day declared bankrupt
by the United States Court.