The sun., 1908-04-26
MlNTYRE LIABILITIES GROW
BANKING INDEBTEDNESS ALONE
IS S57JDOO.

lAN lNulNl -huluiWeu IllAA the tlTn
Has Been Guilty Of ! Technical viola.
ton Of Exchange Hulv -TW o Recel, ers.
The banking Indebtedness of the iahei
e-nl Of T A, Mcintyre 4 D. was computed
by Irving /. Ernst, atcrey for one Of
r..e receivers, yesterday II {t75CCO It Ia
anuudantly secured, and because Of the
recent appreciation in stock il is expected
that q fair equity in the loans may be
ss.lred for the creditors Apart from this
equity all that the receivers have secured
possession Of is a miscellaneous assortment
of curb stocks worth in the aggregate some
5000 at present market pl'ces All Of
The hg CHER class collateral had bon hypothe.
rated, and the prospects are not bright
lor the payment Of any large PERCENTAGE of
the creditors claims
Including the banking Indebtedness. the
liabilities will nun far in excess of TIE 81 ,OOO-
10 estimate made on Friday Probably
they will amount TO tl,OOO,OOO in chims to
customers alone, but not even an approx
mate estimate was attempted by he re-
ceIyers yesterday. Claims ere submitted
N continuous succession by personal hter-
vlep and messenger, and there we're received
number Of kilograms and letters fom
customers Of the main and branch OFFICES
Many Of the customers demanded stods
which they said the firm had purchased f9
them or was carrying for their account y
It became known that the firm in many
cases had gone short OF stocks as it's GUS
toners went long Of them. From this fact
there arose a report that the firm had
bucketed orders given by customers for the
purchase Of stock. A representative Of the
firm denied fatty that there was truth in
the stories Of bucketing orders. On the
other hand he admitted that the firm had
committed technical violation Of Stock
Exchange rules In going short Of the market
in the panic weeks, when money rates were
very high, In the expectation Of buying In
stocks for customers subsequently. This
resource Of the panic days subsequently
turned out 10 be very expensive for when
stocks advanced one customer after another
demanded his stocks or his balance and the
firm was obliged 10 sacrifice block after
block Of securities 10 meet its own short
commitments or the claims Of Gust omers
Apparently some Of the partners, among
them George G. Ryan Of Syracuse, we're
ignorant Of the methods Of conducting
Transactions until matters came TO a crisis
last week. The assets Of the firm had by
this time become nearly exhausted and
ihe partners we're called together and
asked to raise additional capital. After a
bitter alterca tion some OF the partners
. absolutely refused TO 60 further and in
sisted on an immediate suspension John
6 Mcintyre, Thomas A. McInyre's
brother, Joined with them in signing the
assignment, it was said, because he was the
Stock Exchange member and otherwise
might have incurred a heavy individual
liability on the firms contracts
Theodore H. Price, who was said on
Thursday 70 have got the firm into his
recent deal in cotton, is creditor, not
debtorof the firm. Theamouut Of his claim
IS snlall and il was said that his operations
through the firm we're not large at any
time and that cotton was only in a small
measure responsible for the firms pre-
dlcament. The Indebtedness to Cotton EX-
change brokers will be about balanced by
the value Of the exchange seat. The Stock
Exchange Indebtedness, However, a repre-
sentative Of the firm said, would probably ex-
coed the value Of the Stock Exchange MEM
bership. The amount Of stock bought in for
he firm under the rule he 81 id, was over
10000 shares and the avera GO loss two
Ionts, or a total of sl2) 900 AID howard.
Friction between Arthur A. Peck the
assignee, and c. c. Birmingham, the re-
ceEer. developed in the course of the day.
II appeared that Mr.. Peck had been APP
pointed assignee Of firm Of five members,
Nhlh is the makeup Of the Boston firm
While Mr.. Birmingham, whose appointment
as receiver in bankruptcy superseded the
assignment was appointed for the New
lcrk FIRM, which has seven members
In the afternoon Wellman, Couch h
Snyth as 'attor neys for Mr.. Peck, went
before Judge Houghi in the United States Dis
irc, Court and settled the controversy by
Srtu1ng the appointment Of Mr., Peck as a
coreceiver with Mr. Birmingham. The ap- !
pllCdtiOn for his appointment was made OH
the petition Of three small creditors. James ;
D. Shields, Charles A. Hubbs Fud William !
} White. The attorneys represented to /
the Court that Mr.. Peck was thoroughly
familiar with the firms business and that !
they represented Syracuse creditors, in |
addition to those named, with aggregate |
claims OF more than Ss5N0. The Syracuse
branch did more business than any Of the |
othor branches, and the losses are heavier
there than in any other city. Mr.. Peck was
connected with the Syracuse branch.
Neither 7. A. Mcintyre nor GHy Of the
other partners was in the Office yesterday.
Ny Mcintyre was represented as in a con-
dllun Of complete collapse in his apartments
and denied himself 10 all callers except a
few in9mates. Many friends sent him
messages Of sympathy and pro7ers Of as
sls'aNce but one interesting telegram wCs
oi IN entirely di7erent tenor. This was
rom Arnold Lawson. who married Lucy
II read
ngratulations on your failure. This
he beginning Of the end
. 1ese Kind words set At res, reports that !
VI NClntyres relationship 20 the son Of
Thomas W. lawson might result in-the
res.o.a,ion Of the firm through the assist
sHcF U' the Boston operator. is far 6s lr.
Mcintyre himself was corcorred i became
known he had nc expectation Of any friend
lness from this source, for OF no time has
any love been lost between him end Arnold
Laws m. At the same timc Mr.. NcIntyre's
ir!t'Cs said the telegram s.ruc'i him as a
complete surprise He did not expect such
a telegram from cHy one.
Maurice Leon, attorney for Thomas A.
Mcintyre, gave out this statement last
nE.l
.u- months past tlr Mc!ltyres poor
hea!tl Las rrevonted him !,pfH giving his
bra thought 10 Lis b"siner5 Another
- .t-r 10 Lc considered 10 order 20 reach
correct conclusion as to whCt has brought
s.ou. the present sltuGtion is thct after
t"e O1tober panic the Gr'r found itsf
creditor 70 tie extent Of sS)0COO against .
Gus Drers Who would not respond TO call
Toy relni;jances.
lalt cOnsi lerable Fart OF this sum will
eventually be recovered for creditors is
confidently expected by the partners, how q
~. .l lt - lnrossi le 20 say. Rccoveries On q
srlH q sea j take time, however and 50 the
trH found itself derived Of the use Of :
Ne- large sun essential for is inn cdiate .