The San Francisco call., 1907-01-07
SULLIVAN TRUST
MAY BE THROWN
INTO COURT
Big Losses Threaten the
Brokers and Investors in
Stocks of the Company
WRITER EXPOSES
THE PROMOTERS


of the L. NJ. Sullivan Trust Company
has entangIed several local brokers for
limited amounts In such a manner that
the courts may have to straighten the
matter out by deciding In whose favor
the balance should be credited. 1t r.
said that Saturdays unhonored drafts
amounted to 100000. L. NJ. Sullivan
still refuses to be interviewed"
Interest in the affairs of the Sullivan
Company is general throughout the
United States as the stocks promoted
by the company were eagerly purchas-
ed in nearly every section of the coun-
try. The majority of their stock is
held in San Francisco. Los Angeles.
Portland, Seattle, Salt Lake. and points
in Nevada. Much Eastern capital has
also been invested in the stocks.
Should the affairs of the Sullivan
Company be thrown into the courts,
as is intimated in the Goldfeld dis
patch, the effect would be to send
prices down with rush. Local brok-
ers said yesterday that If the affairs Of
the company were in as serious condi-
tion as reported a great shrinkage in
the value OF it's stocks might be ex-
pected. Such contingency might re-
suit in a loss to brokers and investors
of nearely 100000
HOPES TO REORGANIZE
San Francisco brokers will hold
meeting today to arrange for an in
vestigation of the concern. George
Graham Rice, Peter Grant and other
officers of the company say they will
be prepared on Wednesday to meet
with the brokers and prove that their
company is solvent
When Peter Grant, treasurer of the
Sullivan Trust Company. was seen last
night he declined at first TO make a
statement. but later consented to talk
we will reorganize the company"
said Grant. "The trouble is we have
been trying to do too big a business
with too small a purse"
What has caused this sudden
change in your financial condition."
he was asked.
been made upon US. 1t is hard for any
financial concern TO withstand attacks
like those made against u.s."
One of the attacks referred to by
Grant was the matter written about
the firm by Lindsay Denison for publi-
cation in an Eastern paper. Denison is
a New York newspaper man. He has
many good things to say about the
Southern Nevada mines, but he pic
lures the Sullivan Trust Company as
dangerous financial institution, and de-
clared that it was backed principally
by men with unsavory regulations.
PROMOTERS NOTORIOUS
Among other things, Denison. pointed
out that none. of the Sullivan stocks
was listed in the Goldf1eld Exchange;
that none of the company's officers had
been permitted to be member oil the
exchange; that Sullivan had never ap-
piled to have his stocks listed on the
exchange, and that the members of the
company are not received into the best
society of Goldfield.
Denison said that L. M. Sullivan, the
president of the firm, was g. man of
much notoriety in Portland, where he
had been identified with a sailors
boarding house, and was often accused
of shanghaing men who patronized
him, giving him the name of 'Shang
hal Larry.
George Graham Rice, vice president
of the Sullivan Trust Company, also
comes in for criticism 1t was asserted
that Rice's real name was Herzog, and
that he is the son of respectable New
York furrier; that Rice had gone under
number of assumed names. and that
he was involved In serveral shady
transactions.
According to Denison, the firm OBJ
tained a standing in Eastern financial
circles by a free use of the name of
Goldield and connecting with itself
the name of John Sparks, Nevada's
Governor.
STOCKS OF THE COMPANY
Among the stocks which the Sullivan
Consolidation promoted are the Lou
Dillon Goldfield, the Great Bend Con-
solidated. the Jumping Jack Manhat-
tan. Stray Dog Manhattan, Indian Camp
Manhattan, the Fairview Eagles Nest,
the Fairview Haiistone and the Green
water Furnace Creek South Extension.
Denison said the Lou Dillon had
never shipped any ore; that the Great
Bend Consolidated Is bare prospect;
that the pay streak of the Manhattan
Stray Dog had pinched out when the
company bought it, being the only SEN
sationally advertised mine that had
shipped any ore for practical purposes;
that the Manhattan Jumping Jack has
shipped no ore for a long time; that the
Fairview Eagle stands well. but does
not adjoin the Nevada Hills. as was
represented, and that the Indian Camp
was a f1rst-class prospect. He had lit
tie information concerning the others
Rice. as we'll as Grant, is still in San
Francisco; but all requests to see him
are met with the statement that he is
sick. but will be we'll enough by We'd
nesday to meet the local brokers to
give explanations to them regarding
the conditions of the company. Rice
is looked upon as the brains of the
concern. Rice is reported to have been
in Los Angeles last week, and one
Goldheld mining man claims to have
seen him at the Ascot racetrack.
Local brokers allege that for the
purpose of boosting its stocks the
Sullivan Company had a habit of
wiring to brokers each day to sell a
certain amount of stock and to others
to buy the same amount. making it
appear to the spectators that the ac-
, tivity, of the stock in the market was
good. The amount the company or
dered sold and bought for itself
averaged each day about 100000 shares.
at an expense of the usual one-half
Of 1 per cent paid the brokers for
their trouble.
Ill Turk street. was held up and rob-
bed on Taylor street near Turk early