New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-18
GAY & co. In TROUBLE
FRAUD CHARGE rs MADE.
Bankruptcy Petition against Boston
BrOkers-LiabilitieS, SIS, 900 900.

Fsoston Oct. l7.-E. II. Gay & Co. stock brokers,
,fth Offices in Congress street. petitioned into
bankruptcy by creditors in the United States Dis
,-ict Court here to-day. The firm consists OF Eben
u GAY and Joseph W. Jackson. The creditors who
h-ousht the petition ]. Morris Beardslee, OF
canton Penn who had obtained judgment
peanst the firm in the New York Supreme Court
Cor sOs7: Elliot Norton OF New York, who got a
Judgment for $50 and Horace E. Harrington,
clerk employed by the firm. who says that s2oI
for salary is owed him
In their petition the three creditors set forth that
The alleged acts OF bankruptcy are that on Au-
s,,st the firm made general assignment to John
p REYNOLDS il. the benefit OF creditors. and
that the concern conveyed and transferred TO Reyn-
olds the whole part OF the property, with in
tznt 10 hinder. delay and defraud."
The action of the firm in August followed the
easing OF interest payment the bonds Of the
Hudson River Electric Power Company, in which
tbev were largely interested While assignment
was made TO John P Reynolds on August s. by
agreement Of the largest creditors. il arranged
.ts- the business should be hquidated instead OF
th-ovru into bankruptcy. Mr.. Reynolds in a state
,snt to-day said that than SO per cent OF the
AIMS creditor banks assented to 8 six months eX-
-a,s5or Of their loans. He refused comment upon
.h bankruptcy proceedings 1t is generally believed
o1,onE bankers and brokers of this city that the
liabilities will reach 100000. E. II. Gay & Co.
o-ganized about ten years ago, and have made a
s,4ctslty Of dealing steam and street railway,
electric power and municipal bonds
F71iot Norton. OF this city, one Of the three pc
,,.sorers against the firm of E. H. Gay Co.. said
80. that the management of the firms affairs
nv Nj Reynolds had not proved satisfactory to the
majority Of the creditors He said Mr.. Reynolds
seemed 20 them 70 be acting in the interests only of
=. 1e-per creditors Mr.. Norton added that the
,,-se petitioners would be joined by many others,
- that there are creditors all over the country
,enreseuting claims aggregating nearly 100000
,,bo spproved the action taken in Boston to-day
-be n-esen. plight of the company dates from last
- vheo MI Norton obtained a Judgment for
-,ora than $4,000. whereupon the creditors re-
,,,-e5 the firm 10 place itself under the manage
rnert OF Mr.. Reynolds.
This firm. besides .ts main office in Boston also
had Offices IN New York Philadelphia, Montreal
sn6 Psttshurg It was considered OF the largest
--syate banking houses Of Boston
The Affairs OF the firm became impaired. it is
aid by its financing certain projects which proved
disastrous. The Hudson River Electric Power Com
ANY which recently defaulted IN payment of !n-
.orssr m its first mortgage gold bonds. among
,bs numerous concerns in which E H Gay e. Co
mere involved The firm also became heavily in
,e-ested financially in the Pitfsburg. Binghamton
& Eastern Railroad Company and the Tacoma
Gas and Electric Company.
II IS said in this city that the outstanding in
6ebteduess OF the firm aggregates about E.oooo oo-
OF this amount over & 90 is in the form Of notes
held by banking institutions and individuals. A
great many of these holders Of notes are In the
New England States. where the firm operated very
extensively. There a number OF noteholders in
this city who have claims against the firm. how
ever. among them being the Irving National Bank,
SIS 60 3; Plaza Bank. SoOoSe co. the First Ma
tCusl Bank, Sos .2sz Os; the Standard Trust Com
pary. s9264 =; Brown Bros & Co, f42525. and the
Enckerbocker Trust Company, $4,000