The San Francisco call., 1907-01-05
SULLIVAN COMPANY
IN FINANCIAL
STRAITS
Drafts Are Protested ana
Stock Brokers in City
Are Among Creditors
EXPERT SENT TO
LOOK INTO ASSETS

The 7. NJ sullivan Trust Company
- Nya,.aa ts IN trouble Drafts have
come back protested to san Frah'.sO
from GoIdheId banks Brokers In ms
city viii lose thousands OF dollars A"0
an expert accountant has been SEN
GoldheId to investigate g. G- Hi0'
the manager Of the company, ana Felel
Grant. treasurer. are in this city anu
will prepare a statement Of the analIs
Of the company. Mr.. Lindsay OF r.
Nevada State Bank and Trust Conp@1s
is also in this city and has eohierreo
with brokers. o-.,,,
has bAen largely interested in the sale
of shares in the mines that IL cont
In Nevada According to the pest -
tainab1e information cross -, 80
been kept up of selling ana Duyl9
orders Something like a IoItnis
ago rumor was current lna1 .1-,.s
fairs of the company were 80
but there was no intimation tnat tne
corporation was not able TO meet us
obligations. -.
During the past few days NUMBER
OF drafts on the company have arrived
in this city from Goldfeld banks IN IN
satisfied. This circumstances threw
1
of excitement. Finally Rice ana Srsnc .I,
put themselves in communication Win
the creditors and told them tnat All
claims would be met.
One OF the large creditors OF tne
L NJ. Sullivan Trust Company Is Her-
man Zadig. of the San Francisco STOCK
and Exchange Board Aaols
knowledged last evening that ne was
out $4,000 by his dealings with the
L. NJ. Sullivan company He SAID that
he was confident that the company
had assets enough TO meet all ooh-
cations. He said that he had no idea
what the total liabilities might be, but
they could not be enough to change
his opinion concerning the ability OF
the company to pay In full
The L. II. Sullivan Company, said
Zadig. has the controlling interest In
good mines. II has stocks in tbfse
mines that are worth a lot of monsf In
the market. Rice has been away In
Salt Lake for some time and left Sulli-
/ van to manage We lose about $10.-
/ 900. 1 do not care to say who the
other losers in San Francisco are. and
do not know, in fact"
/ Zadig said that the losses were
caused principally because the sellers
Of stocks in the Sullivan COmpany's
mines were unable to deliver.
I The mines that the l. NJ. Sullivan
/ Company has promoted include the
Great Bend Consolidated. the Lou
Dillon. in the Goldneld district; the
Eagles Nest at Fairview, the Indian
Camp at Manhattan and the Stray
Dog and the Jumping Jack in the
Manhattan district. Some OF these
mines adjoin properties that are
/ good. Large blocks OF stock have been
sold in San Francisco. Salt Lake. New
York. Pittsburg and. other places TIE
/ full facts regarding the troubles OF
the company may not be known for
day or two. until returns are re-
ceived from all points where brokers'
have dealt in the Sullivan stocks
When seen after the fight last night
/ Peter Grant said,
Il don't mean to DENY that we are
/ temporarily embarrassed. but every
I thing will be all right again BY next
I Wednesday or Thursday. 1t Is easy to
! see that the protesting OF the drafts
was 8 mistake and that IL can easily
+ be rectihed- We have a rule in our
! company to have no checks payable
unless they contain the signatures OF
/ two Oficers- Sullivan went to see the
/ fight at TonOpah on New Years and
has not returned since. We will1 BE
/ able 10 fix things UP when we Fear
/ from him. The reports discrediting Us
have been inspired by malice. Experts
have been auditing our books recent
~. and they bear Us out in the claim
{ that our present assets aggregate more
I than s1.0O0.00O. There is no occasion
for uneasiness OF any kind"