New-York tribune., 1909-04-15
BROKERS' ASSETS FEW
RECEITER NOT HOPEFUL.
Ennis & Stoppani Creditors May Oct
Less than p Ccrts on Dollar

-,s ,-,-es+iea.ton Of the failed firm Of Ennis &
...-,,r, ~, the receiver Lindsay Russell. so far
- q, had rroreeded yesterday, held out small en-
o,,,-ar.,,e-- for the unsecured creditors, whose
claims are estimated at considerably over $1,000"
Mr Russell said rhat the only tangible assets ne
had been able 30 discover up to the present. aside
from the ssoo0n collateral put up with the banks
.n which the firm has an equity Of probably $1,000
-,re -ba r,aoopany furniture and rugs in the main
Office n ~o q New street and $3.50 in cash lie
thought that the creditors would receive less tHah
y cents the dollar In other quarters Il Nds
said tha; the receiver too hopeful and that
the creditors would be lucky if they received peI
cent Of the amount Of their claims
AL the securities the firm had had in lis posses
sion so far as ne had been able TO ascertain MT.
Russell said, including those belonging 10 Gus
TONERS had been pledged with banks as securl'!
for loans This practice Of hypothecatlng Gus
-o-ers' securities II will remembered. was fol-
lowed bv the Mcintyre and Brown firms. and the
late Thomas 4 Mcintyre. head Of the former hTnl'
tn his testimony before the referee in bankruptcy
declared that il was the custom Of brokerage
houses IN Wall Street thus TO plense 'iei 'U9
toners stock
Mr. Russell declined TO discuss the right OF the
brokers from a legal point Of view to hypotheca'e
their customers stock without the latter con
sent but said that the banks being innocent INN
PARTIES could sell the stock TO cover the aih'ul''
Of their loans The balance. if any, would 3" 10
the customers. provided they could es'aoilSH 'li'
ownership Of The stock. he said
All such customers stock, TO have been accepted
r,v the hanks. it was pointed out. must have been
Endorsed in blank, unless the customer lhu"'se .
,nen1 was forged in which bank would nave
no claim upon the security The only way IN "illCi
q customer could identify his stock. II ino"FSeu HI
blank would be by The number or, by tracing me
fund by which it purchased MI husse" Sa'i
that he had idea how much of us ous'onieIS
stocks the firm had hypothecated, but that me lola
amount Of securities pledged with the bailhS IA |
city was about S4o0.@E The firm ne aouel' '
74cred sort Of deposit business, IN aoui'ioii
10 its brokerage and banking business. and num-
far or its customers left their securities IN It's
charge. So far ne said he had also found that be
tween twenty-five and thirty customers had haIheu
with the firm and had balances with II
The accountants he had engaged to examine the
hooks Of the firm. Russell said, were ALREADY
al work and had found that they were kept IN
fairly good shape. He added that II would lake al
least TWO weeks Of nard work 10 learn what lhe
liabilities Of the firm were and that until some
thing definite was learned it was best To keep I"
the already published estimate Of $l'oo."oe CoNn-
Sc for the receiver said however tna' lle ieui'
might reach 81. ooo coo
The largest customers account he had kno"ledse
Of Mr.. Russell said. for S5o,ooo. and from
that they ran down S25o the average being
about $500. Altogether TWO thousand separate ac-
counts have been found on the books None OF the
accounts Is in the name Of the firm
Nr Russell said he had sent out notices TO
twenty banks in different parts Of the country with
which the firm had accounts, asking them 10 send
him a statement Of the amount n their balances
10 the credit Of the firm. He added that be had
found substantial balances in the four New York
City banks in which the firm had accounts
In the afternoon Mr.. Russell held a conference at
the offices Of the -ailad firm with its attorneys,
Cleveland q Cleveland Al this meeting TreadweI
Cleveland. to whom the firm made general as
signment Tuesday morning, following the bank
ruptcy proceedings. surrendered peaCeahle posses
sion Of the assets TO the and agreed to
operate with him in every way possible He also
promised TO Use his best endeavors have the two
members OF the railed firm Thomas A. Ennis and
Charles F. Stappani. who have SO far failed 10
appear although roth are known 10 be IN the city.
come before the receiver to-day Mr. Russell said
II the hankrupts did not come before him vol
unfairly this morning he would get order of
court compelling them 70 do so
Speaking Of the suspension OF the firm and the
causes leading up it, Mr.. Russell said that he
had not beer able learn definitely Yet just what
caused the failure that he convinced that
no the of7ce knew that the firm insol-
vent three DAYS before tho suspension took place.
He added that the urm's running expenses amount
ed 10 over sl,eloel7 year Il was rumored in the
Street yesterday that besides being the wrong
side Of the wheat market in Chicago the firm was
heavily short Of Union Pacific and Reading in the
stock market here.
The main Offices Of the concern continued yester-
day 70 be crowded with customers seeking lnfor-
nation in regard the failure 4 large number
Of the creditors n poor circumstances and their
losses viii amount 10 practically all they had
Many OF those al the Offices yesterday were East
Side Hebrews and they were about detected
lot Of humanity could he found anywhere.
As soon as a referee in bankruptcy has been ap-
pointed which. il is expected will be in days,
a general meeting OF the creditors viii be called
The application for she appointment Of referee in
bankruptcy Tor the failed firm viii be made by
House. Grossnlan & Norhaus, counsel for the
ceiver who represent also great number Of the
failed firms creditors
nDnI-IrTl II-IZInIr