New-York tribune., 1909-04-27
HE BLUFFED M'CARREN
RECEIVER'S CLEVER ACT.
Russell Bought Stock 1cith Senator s
O7cr Check Just IN Time.


The real facts Of the transaction by which Re
ceiver Russell turned over to Senator Patrlck H.
McJ,arren she stocks standing IN his name on the
, books Of the defunct firm Of Ennis & StopIam
and made $4,000 for the creditors on the deal
came TO light yesterday. They show that the re
ceiyer carried on 2 grand game OF bluff with the
Senator over the delivery him Of his secuTlileS
and that as matter Of fact. he bought the stock
in the open market with MCCaTren's own checK
only five minutes before the market closed on sat
urday
The stc-y as told by man who knows all the
particulars the transaction. is that shortly AFTER
blind account S3q had been traced 10 Senator
McCarren the latter called the receiver up on the
telephone and acknowledged that he owed the ao-
count. and would pay il provided the actual STOCKS
were delivered him. Although MI Russell did
not the stocks in question all the securities
in the possession Of the firm having been put up
with various banks collateral for loans ana
had money with which to buy them, he quickly
decided TO let such opportunity 90 by 10
collect over 100000 which the account showed was
for the creditors and promised 10 GeliFer ti'e
stocks 10y the end Of the week
He then set about planning how TO get the stock
o his bluff Sood, and finally decided TO boT-
row the securities from 4 Stock Exchange house
deliver them 10 the Senator and upon the receipt
Of lis check buy the necessary stocks in the open
market. and return them to the house from Whlch
he had borrowed them. The first hitch in his plan
came when he was Informed that TO New York
:
him any stock on the ground that he was receiver
OF a Consolidated Stock Exchange firm MI kus-
sell, however. had a conference with President IL
H. Thomas and Secretary Ely, of the big board.
at which It was agreed to allow him to borTo" tHe
necessary stock from member Of the exchange
on his personal credit and not the receiver OF
Ennis & Stoppani.
DELAY IN CERTIFYING CHECK
This arranged. Mr.. Russell borrowed the STOCK
and with the certificates in his pocket went to
meet the Senator. Then came the second hitch'
for there was a delay getting properly cerJlhed
The check which. as already published had been
| made out by J. 5. Bache & CO, TO whom the Nc
Carren account had been transferred When 1t was
| finally returned from the bank only five minutes
remained before the close of the market.
Mr. Russell had a at the telephone. ready TO
give the order the broker on the floor OF the
| exchange who was to buy the stocks the instant
the check was received. The order was given ana
the broker rushed TO tho Amalgamated copper
most where he bought twenty-five hundred shares
Al the market: then 10 the Brooklyn Rapid Transit
post, where he purchased two thousand Shares "I
that stock and finally the post where United
States Rubber stocks sold at which he bought
fifty Rubber first preferred A second after he
completed his purchases l. o'clock struck and Il
being SATURDAY. the gavel Of the presiding ofil'er
announced the close OF the market The tanSa'-
ton had been completed in time. and Mr.. Russell
was able TO return the stock he had borrowed to
the lender and a the same time add over Sl"htVV
To the assets Of the failed firm.
Yesterday Mr.. Russell examined Mrs T A
Ennis the wife of the senior member Of the de-
funct firm and Mrs E A. Riley. his mother-in-
law The TWO women answered every question OF
the receiver fully and frankly Mrs. Ennis told him
that ready To turn over everything Sie
had provided a settlement could be made with the
creditors She explained that. il addition to the
house at No So Park Place, Brooklyn. worth about
$50 60 she had d small amount of property, lncIud-
ing furniture three horses and carriage and some
securities She said that her husband had given
in Tae TArB
the contrary, she had put into the firm in the last
four without receiving any security lracu-
cally all the property she could iquidate In Inc
hope Of saving it from bankruptcy
SAYS SHE COUNT HELP BANKRUPTs.
Mrs Riley told the receiver that neither she nor
her daughter. Miss Florence Riley, who is i'll. had
any property belonging to the bankrupt firm. or
auy personal means with which come to the
assistance Of the bankrupts. She said that the
safe deposit box which had formerly stood in
her daughters name had been given up two
years ago.
The reartne which was to have been held to-day
before United States Commissioner Alexander has
been adjourned and Nj. Russell said yesterday that
il might not be necessary 10 hold 1t at all II the
witnesses who had been suhppnaed continued 10
tell him voluntarily all they knew about the hrm
affairs.
The plan proposed by Irving L Ernst, attorney
for bankrupts. providing for the formation
Of "a corporation to take the assets Of the
lieu Of their claims, with the addition Of a small
cash payment has fallen through owing TO the
discovery that all business on the Consolidated
Stock Exchange must bc done by individuals Mr..
Ernst said however that he had evolved new
plan under which he hoped to have the firm re-
sumo business as a co-partnership and issue notes
of Indebtedness the creditors in exchange for
their claims These notes would run about a
wear and half and be payable at stated times.
probably every six months. Creditors who accepted
the note proposition would sign release Of their
claims against firm and provided they all
agreed TO the plan. the firm would he able to
meet the rule OF the exchange that TO be rein
stated II must be solvent. Mr. Ernst hopes TO
have the latest plan ready for submission to the
I creditors next Thursday.
Charles H Badeau. president Of the Consoii-
dated Stock Exchange. when asked about the
. prospects Of the defunct finn being renstated
the little board" said
To lie reinstated the members would have to
snow absolute solvcncy. and unless IN" committee
on admissions was fully satisfied that each mem
be- was able to meet his he would not be
I readmitted. Some members have been reinstated
when they had outstanding liabilities. but in all
those cases their assets fully covered their in
debtedness.'
ASSETS GROWING.
Things began look little better for the credit
crs yeste-da. far assets are concerned. Aside
from Mrs. Ennis's promise everything
She had To the receiver provided a settlement
could be reached with the creditors Mr.. Ennis
himself turned property amounting in value
to S.5Ga0 including a yacht. house at Allen
hurst. y. J.. automobiles. stock in an industrial
concern and other personal property. Mrs. Stop
only returned the $4,000 in collateral she had re-
l,f,..s @rop, the Tlul as security for a loan Of