New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-08-23
BROKERSFO RCEDUNDER
MILLS BROS. s co. FAIL.
r. Il. Garfield Had Large account
s1th Stock Erchange Firm.

Mills BROTHERS & Co. of No. Il Wall street, q
Stock Exchange firm failed yesterday, with Ia
biltties said to be between 100000 and *Zo'-
600 Richard A. Garfield was customer OF the
firm and, according 10 his counsel. H Sno"oeh
Marshall of Battle & Marshall, of NO. 81 wan
street Mr. Garfield had a large account with the
firm which was at first operated ON the SHUT
side of the market with considerable proh' anu
was later operated on the long side with some
losses Mr. Marshall said. however. that MI
Garfield had not authorized any transactions
since previous to the March panic AT that uine'
Mr. Marshall said his client had a balance OF sew
eral hundred thousand dollars. which included q
large amount of Delaware & Hudson fenhsvi-
vana and Illinois Central stock. which MT. Cail-
field had put up as collateral on ms maj gins @
said the firm admitted balance due OF Sei'oV'
but they had not even been able to pay that' al
though Mr. Garfield had been trying 10 op'aii'
a settlement from them for more than 'nree
months Finally. he said. Mr.. Garfield had
threatened suit Their inability TO pay WAS "iio'
forced the failure. he added.
NJ Marshall said further that there had peeh
q great n,anv unauthorized dealings In the
stocks held for Mr.. Garfield and that safes ana
purchases were made on MS account
without authority from him.
Franz, A Lord of Rand. Moffat Wepo.
counsel for Mills Brothers q Co. ueineu
statement
r,ode purchases and sales of stock without au-
tboritv from Mr.. Garfield. The fact WAS "o
said that Mr. Canheld's margins had run 10"
and that the firm asked him TO put up more
margin but getting no reply they sold MIN OUT
nc ibe,- had q perfect right to do. He SAID tiia'
ON "Wednesday a member of the nrIh went ~
see Mr. Marshall and offered TO se''e o'i ~
firms terms. but that Mr. Marshau reius.u '
infer What the offer was MT Loro ulu 1o'
s+a.a but IT IS presumed to have peeh F'i'"0''
as that was the amount Mr.. Marshah saia' ',ia'
they showed In their final statement u o N
to Mr.. Canf1eld -, 49,. ,,o
-, ,,,os caused by customers not responding
. ,,,I,S for margins but that the liablllies "eio
comparatively small and that they nopeu W 10
able to resume business shortly Inc urn '''"
general assignment for the beneiit Oh 'heh -.
,tors to Edward Harding. Of Camppeh fiai"e
q Pratt OF No. as Exchange Place MI Sallip-
hsu attorney for the assignee. said that they
b.S M, had time to make an examination oi
the FIRMS affairs and that all he coulo say
a-an. pas that .he liabilities would
- bo,uean 100000 and S200.OOO and that
tho r-incfpal asset the Stock Exchange seat
held by Philip o. Mills. the board Inefhoer Vi
the firm: that there were other poss'nie aS'e'''
and that II expected the firm "oulo oe hOio
10 pay in full and resume business he saaa
he knew nothing about MI taflileiu = n~Ni'N
With the firm but that he understood the IAN
,re was due to customers not keeping up their
margins during the recent slump In the market
None os the members of the firm would talk
about the Garfield end OF the matter
The failure was announced on the moor OF the
Stock Exchange shortly after II o'clock IL
was not regarded as important and had no
effect on the market. II was reported on the
stock Exchange that the suspension OF the
firm was due TO it's inability TO deliver Stocks
IN Richard A. Garfield. after having closed ms
account because OF the margins running Low"
Shortly after the failure was announced there
vas a report in Wall Street that II was an
aftermath Of the suspension OF James w. Hen
ming last fail but this denied by friends Of
Mr. Henning who said that he had made n fun
se,freuent with Mills Brothers & Co. repre-
sentative OF the firm also denied that the Hen
ming suspension had anything TO do with the
failure.
The firm consists of s. Frederick Mills. J.
Henry Mason. tr. and Philip o. Mills. The lat
ter WAS the board member OF the firm He was
admitted TO the Stock Exchange May is. 18Uo.
and the firm was organized September - Of
that year.
The Mills brothers are sons OF General s. NJ.
Mills Philip o. Mills is we'll known in athletic
circles and was football player at Harvard.
having played tackle on the Harvard 1904 and
1905 varsity teams He also rowed in his class
crew.