The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1906-01-19
If the Prior Series Are
Not Returned the CITY
Water Works Exten-
sion Bonds May be
Withdrawn.
Failure Of the Demand
May Meet With a Suit
for ] heir Recovery.
Local Officials in Con-
ference.


ference.
Cleveland, o., Jan. 1e.-The city Of
Canton has demanded the return of all
the forged Canton bonds that J.. W.
Prior put out. II the bonds are not
| turned in within q short time. the CITY
may withdraw the water WORKS extSn-
sion bonds from the market, and is
J sue O reiunding series. Should the
spurious bonds not De returned, the
..Iy may also sue for their recovery.
il. III. Johnson, attorney tor the
bankers committee, and also for the
holders of the spurious Canton bonds,
met Armstrong Ashbrook, city auditor
of Canton, and VIM. Day, city attor-
| ney, at the offices of Hayden, Miller &
Co., Monday afternoon and promised
them that the bonds would all be turn
ed in by Feb. Is, when the next pay
ment of interest Is due.
| In the meantime kountZe & Co., of
New York, have been ordered to stop
the payment OF interest of water
works extension bonds OF Canton. This
order may be extended to other serles
| If there should later arise any sds-
picion that there had been additional
torgeries.
The bankers committee which has
been handling the affairs of Denison,
Prior & Co., since the firm failed re-
tired Tuesday morning in favor of
Thomas II. Bushnell, the receiver ap-
pointed in United States court Mon
! day.
Accompanying the committee's ro-
linquishment of the bankrupt firms
laffairs, the following statement, auth
orized by the bankers, was given out
By Chairman Fl. r. Newcomb:
"1he investigating committee had
a meeting this morning and had the
fullest returns possible made to them
heir feeling is, a receiver having
been appointed In the United States
court, and matters turned over to
him. that it is due To the public that
they make the following statement:
THE total liabilities, including all
forgeries, aggregate approximately
three million, and there are valid as
sets either in the hands Of the firm, OF
up as collateral, of about one and q
half million. This total Of three mil
lion includes about one million of as
sets and liabilities in the Boston and
Cleveland bond departments, which
have not heretofore been taken into
account, as the bonds in the bond de-
partments are good and valid bond;
largely hypothecated, and more than
ample to pay obligations against
them"
Mr.. Dennison was in Boston last
Saturday and had shipped ON, to be
turned over 10 the receiver, something
over $4,000 of good securities, which
was all the property in the possession
of the firm in Boston"
In one particular the above state
ment differs from an estimate of as
sets and liabilities furnished by
Chairman Newcomb Monday after
noon, At the time he put the gross
liabilities, including $1,000,OO0 of fOrg.
ed bonds at S1,900,000, and the good
assets at approximately 100000, leav.
ing deficit of S1,40O,000. If, as was
possible, another 100000 forgery de
velcred, the gross liabilities would bt
S2,000,000, or about four times the as.
sets, said Newcomb.
Tuesdays statement adds $1,000,00t
to the previous estimate of assets anC
the same amount to the liabilities
The explanation given by Newcoml
for this addition is that it covers gooC
4 do NIL
tiated. The bonds will suffice to cover
the loans but are not available on the
general debts of the firm, except fol
small equities which, with careful
handling ought to be left, over ant
above the amounts of the loans. Thes,
equities will go into the general as
sets but they cannot amount to much
II was with the idea Of saving as mucl
as possible In these and similar equit
les by closing up the firms affair:
slowly, that the bankers committe,
was asked to act.
With liabilities OF $4,000 900, includ
ing the notes given BY Prior to hold
ers of his forgeries, and apparen
available assets of 100000 for tn,
; general creditors, 1t is apparent tina
; the latter will get about 25 cents OF
the dollar, II no further additions are
made to the debts by the discovery o
more forgeries. or other transaction
unknown up to this time.
An involuntary petition in bank
ruptcy was filed in the federal cour
Tuesday against G. p. Deaison, o
, Denison, Prior & Company. The plAln
| tiffs are the Cleveland Building com
! pany, the United States, Telephon