The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-01-08
SULLIVAN COMPANY
IS GIVEN TIME
BY BROKERS
Local Men Agree to Plan
Whereby Corporation Is
to Put Up Stock as Surety
PAYMENTS TO BE
IN INSTALLMENTS

NEW YORK. Jan. THE Sheriff to-
day received an attachment for Sio2,S00
against the property of the l.. VI. Sulli-
van Trust Company of GOldhelds New
in favor of Frank :. Cotton, who resides
at the Hotel Belmont, this city, IN a
euis brought 10 recover damages grow
shares of stock of the Bull Frog Rush
Mining Company, an Arizona corpora
tfon.
The stock Is said 10 be worthless. Ii
fs ALLEGED that a receiver WIS appoint
ed for the Bull Frog Rush Mining Com
pany last month. The attachment was
granted by Justice Davis of the SUI
preme Court. A deputy sheriff served
copies Of the attachment on officers OF
A bank and two trust companies.
San Francisco mining stock brokers,
whose drafts on the /. n Sullivan
Trust Company to the amount Of about
$500 600 We're protested when sent 10
banks IN Goldfeld. met yesterday be-
hind closed doors with Peter Grant and
Graham Rice in the Office Of klink.
Bean e. Co in the Kohl building and
reached an agreement, so IL was given
out that they would extend the time
for the Sullivan Trust Company TO
make good and that they would take
no legal action against the company
in the meantime.
Grant and Rice agreed to make pay
rnents at the rate Of 100 cents on the
dollar in three installments, the first
10 be made in sixty days, the second in
ninety DAYS and the third in 40 days.
After the meeting a statement was
made by Klink Bean & Co. concern
ing what took place in the meeting.
The Sullivan Trust Company was Of
the opinion, so il was set forth. that
the amount Of coin necessary to meet
the san Francisco obligations would be
forthcoming in four months The san
Francisco Indebtedness to brokers is
something Ike One-third Of the entire
present liability OF the Sullivan Trust
Company. the total being estimated be-
tween 100000 and 100000 What
would be done TO satisfy creditors al
Salt Lake. Reno and other places was
not MADE public and that question may
be taken up later
The San Francisco mining stock
brokers naturally wished some securi-
" for the Sullivan Trust Company S
debts TO them An hour or more was
spent in talking the matter over. Final
". so II was given out Grant and Rice
agreed to a plan by which the Sullivan
Trust Company would put up 4or It's
San Francisco liabilities as many shares
they failed TO get paid for by drafts
on the company. The shares in the
present possession Of the San Francis
co brokers and those of equal number
70 be put up by the company will be
placed in escrow. If the company fails
10 pay 100 per cent cash within the
four months prescribed for the three
fnstallnnent payments, then all these
shares Will revert to the brokers. i
re company should pay. as Grant and
Rice promise IL VIII pay, then the
Z NJ Sullivan Trust Company would
take in all the shares from escrow as
its own.
One result Of this is that all the
shares that are now in the hands, Of
the San Francisco brokers in the min
ing corporations that are known as the
L. NJ Sullivan companies will be with
drawn from the market and viii not
remain TO be sold locally at prices that
might interfere with the prices to be
Obtained elsewhere. There is a short
SIS crest that might make for manipU-
lstion Of prices. Much OF this short
interest is seller thirty days. The
time would arrive when brokers who
have sold short would have to deliver.
il was submitted to the brokers. 50
a. was given out after the meeting. thai
the exact amount of the liabilities OF
the Sullivan Trust Company on account
OF protested uIdLlc " - MDL AnOMLl- =
mail pouch that may contain number
OF drafts Of considerable amounts has
been delayed. Possibly the brokers vii
know today how much stock the Sulli-
van Trust Company will be compelled
10 put in escrow and also how much OF
financial liability the company will try
10 make good within four months. The
brokers required that some guarantee
should be made by Grant and Rice that
II - -
the /. M. Sullivan Trust Company
would be operated continuously.
This is an additional means to pro-
vide that the Sullivan Trust Company
shall exercise it's best diligence to get
the money in hand that II has agreed
TO pay TO the San Francisco brokers
The arrangement reached was pro-
nounced by Klink, Bean & Co. over
their signature to be entirely salts
factory TO the brokers"
Those who were present at the con-
ference yesterday were Messrs. Noise
Toplitz, Donellan, Kreider, zadig and
Wollberg, all concerned as brokers IN
the making good of the drafts allowed
TO go to protest by the Sullivan Trusi
Company; also Grant and Rice OF thu
/. NJ Sullivan Trust Company, and
Charles B. Stone, who went to Goldhelc
for the Sullivan Company 10 invest.
gate the books and whose figures fur
nished the basis OF the report that was
given out by Klink Bean g. Co.
According to dispatch received In
this city last evening, the Sullivan
Company's officials in Goldf1eld made
no apparent effort yesterday to trans
act business. The window blinds OF
the Offices were drawn and from slight
glimpses gained Of the interiorsa few
figures could be seen IN the inner of.
fees. No statement was Forthcoming
and Larry Sullivan failed to make ar
appearance. He is said to be ill at his
home IN Goldheld.
It is reported in Goldheld that James
Degan, formerly assistant cashier OF
the Nye and Ormsby Bank and who fs
now q San Francisco stock broker, has
begun attachment proceedings against
the Trust Company to recover 5000
POSTPONE APPLICATIONS