The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-12

RVNthA llANNlN A"A - -
keut their own collectors on the grouno
and saw 10 il that their owp men got tne
cash from the goveTnnnent ~ the ~urTaH's
fell lduc and transmitted u 70 tnenl'
larse number Of Others entrusted the col
lection Of their accounts TO MAnuei oil
veiva
Hero ia a statement dictated yesterday
nv the ranking partner OF one OF the largest
New York houscs engaged in the Cuban
warrant business:
sSiIycira a Co. have been the principal
aRpbtS in Havana for the collection OF
soldiers warrants owned here and abroad
Reinittancre have been made to parties
Interested here for n large part OF these
w%arTnnta. Undoubtedly Silveira A Co. still
retidn warrants or funds due parties here
and abroad. but to what extent has not YET
been ssCPrtalned.
now THE BUSINESS IN WAS DONE.
A word of explanation regarding ten
maturity Of the warrants il necessary,
The, claims first proved took precedence
in m Every claim was numbered
according TO its sequence in the time OF
proof II IL only the high numbers, ac-
coraingly, that have matured TINS year
and,onlV the highest numbers remain out
For Celallos 4 Co. and d large number
Of other firms Senior Manuel collected the
high numbers and cent the returns on
In the beginning Ceballos 4 Co. had claims
of the face value of 5000, 900. Up to the
time Silveira grew lax in his remittanoes
the firm had received $500 900, and $l,OOO.-
900 in warrants is Deposited in the Cuban
Treasury and il safe. The firm heard yes
ltsrday that $500 900 in warrants had been
found in Senior Manuel's safe. The re
manning $500 900 the firm heard yesterday
bad come into the possession OF Silveirn
and they suspect that it Is in the hold OF his
treasure chip.
So with the other bankers.
R-Why do we not receive the money due
on our w%arrants2" they asked Silveira.
~The political conditions are very unset
tied on the island and the Government ia
husbanding its resources" was the reply.
Investors in the warrants must appreciate
the large amounts of money they were
making, Senior Manuel said later, by way
Of appeasing them. They must appreciate,
too, that Cuba was a Spanish American
country and though, no doubt, the Govern
'ment had the money to pay and really ought
40 nay, yet the Constitution and the law
amount to very little. after all. In times OF
revolution. Must not the Government
have money to hire soldiers and buy pro-
visions and ammunition2 Was not self
preservation the first law Of nature and
must not the authorities look after Them
selves first and the debtors after wardH
Meanwhile, bankers believe, Senior Manuel
was looking after himself.
WHAT suvEIRA TooK WAS PROFIT.
: How much Silveira secured from other
bankers than Ceballos d Co. lone of those
Interested in the claims yesterday would
attempt to estimate. 1t ia known, how
ever; that apart from the issue Of bonds,
which are readily salable, there has been
paid in FASH this year Sll 500 900 OF the
principal alone of the soldiers warrants.
They bear interest at 8 per cent. Perhaps
s, perhaps 10 per cent of this money liz now
in Sehor Manuel possession.
Ii must be borne in mind that a large
part Of the money warrants which came
into the possession Of New York. and foreign
bankers came through merchants and
bankers in Cub In other words, they came
to these houses without the use OF persuasion
on their part upon the Cuban Government
in the manner which, it is notorious, was
practiced at the time provision for the pay
ment Of the warrants was made by the
Cuban authorities. New York bankers took
many of them from needy Cuban holders
after the warrants had passed out Of the
hands of the soldiers. They took them at a
discount. il is true, but in most cases we're
innocent holders for value.
Yet Appointment banker said yesterday,
IF il he that any OF the money acquired
by bribery and corruption il in Senior Man
uel's treasure ship, IL may he that the Senior,
absCOndcr as he is alleged 10 be, is never
theless administering retributiVe Justice"
IL is understood that both Ceballos 4 Co.
and William Solomon 4 Co., among other
houses simply, purchased warrants secured
by Silveira from Cuban soldiers, mer-
chants and bankers. The same truth
applied 10 A. b. Leach 4 Co., another house
which handled large numbers of the war
rants, with the exception that A. b. Leach
4 Co. secured none of their bills from Sill
veira and have realized on practically all
their investment. These houses, in other
words, ministered TO the commercial needs
of the island by cashing Government paper
held by various Cubans.
IL il everywhere conceded, however,
that the business was immensely profitable.
The discounts were remarkably large even
when the competition for the warrants
became the keenest. Accordingly, what
ever the amount of money Silveira has in
his possession, except in the case of Ceballos
d Co, he has taken only part of the profits
and not a bit of the principal of the bankers
Investments.
William A. Solomon 4 Co., it became
known yesterday, had loaned 10000 to
Ceballos & Co. This loan, il was said at
the offices of the firm, was made an col
lateral amply securing the loan.
HoLD CEBALLos's STERLING BILLS
Other probable creditors Of the sus-
pended Arm are a number Of houses which
accepted demand sterling bills of exchange
drawn recently by Ceballos d Co. IN vari-
GUS houses in London. The bills are now
on their way across the ocean and very
likely will be presented for payment in a
day OF two. Contrary to usual custom
they are not secured by bills of lading
or other collateral Of any kind. Their
Validity depends entirely on the Cre0lC OF
Ceballos a Co, who apparently drew the
hills in anticipation Of payments by Silveira.
Purchasers Of these bills in an aggregate
amount of $275 900 are known as follows:
National Bank of Commerce. $50, 900; Stand
ard Bank of Africa, $4,000; Sovereign
Bank of Canada, $25. 900; Bank Of Montreal,
SIS, 100; Canadian Bank Of Commerce,
81, 900; Heidelbach, Ickelheimer 4 Co,
s25, 900; Muller, Schall Il Co, SIS 900; Kessler
h Co. t25. 900; G. Amsinck n Co., SIS 900.
TIT National Bank Of Commerce was the
principal depository Of the suspended
firm. Officers Of the bank refused to dis
chss any phase Of the failure.
LETTERS FROM SILvEIRA DESTINATION
UNKNOWN.
The special partner in Silveira's banking
house was jose Beola, the wealthiest man
in Cuba and one of the most prominent.
Cehallos & Co. expressly and e~mphaticalIy
absolve Senior Beola from any completely in
or knowledge Of Silvejra's transactions
On the other hand. he is doing everything
in his power TO s~traighten matters out for
the suspended finn. Late yesterday after
noon the firm received this cablegram from
him.
Il find the deficit 81, 900, OOO. Outside
liabilities of the firm are 500. 900. Letters
received from Manuel dated five days after
sailing on Carmelina state that his desti-
nation is unknown"
The 81 900, 900 deficit relates TO the loss
- rakoIloa 4 70 . the a1OO On0 IL - ha-