The sun., 1910-05-23
LOANS ON BOGUS RECEIPTS
DURANT & ELMORE. GRAIN
FIRM, HOPELESSLY INVOLVED.

Bank Advances 20 the Amount og a8gg..
OOo. Nest % Whleh Are BASED On
False Warchouse Receipts Delaware
and Hndson Railroad Responsibility
ALBANY. May z2-The Affairs Of the
DurAnt 4 ElmOre Company. grain oper-
atom. with Oiices in Albany and Chicago.
seem 10 bs hopeleSsly involved. The
National Commercial Bank Of Albany
has tho oompGnys paper for $4,000
and the First National Bank for 81. 500.
A New York institution is interested
m the Commercial Bank loan. Gibson
Oliver. the treasurer Of the company.
had charge Of the Affairs Of the Albany
Offices. according 70 the members Of the
firm. Il Il said that the bank collateral
II composed largely Of warehouse re-
oaipts which had onOe been honored
but not taken up. and that these ~ Ceipts
now represent nothing In storage.
Il " reported that . discharged en-
ploy ee Of the transportation company
involved made 4 possible for the ware
house receipts % be retained and that
this neRliRsnce ID attributable 10 the
transportation company. which may have
70 ssttls the banks claims based on thesa
warehouse receipts.
This statement was made by The on
GERS Of the National Commercial Bank
tonight:
1T Il true that 20 far A. our inveStiga-
ton has gone We have become convinced
that the Durant a Elmore Company II
hOpelesaly involved. A in all such cases
where insolvents have been engaged in
large transactions and the volume of
assets are dependent upon the value Of
outstanding drafts and obligations. Il
u impossible 20 dstermine anything with
any dagros Of approximate certainty.
We are Informed that eight or nine banks
hold the firms paper besides grain CON-
mission brokers with whom the hrm has
dealt and q number Of individuals.
Whether we have sustained any loss what
sOeveF will depend upon the determina-
ton % legal questions which We are
advised win arise under q peculiar state
Of facts which we have discovered and
our counsel have under consideration.
Nevertheless. in accordance with our
custom, We shall Immediately charge
oh the amount Of tho possible loss from
our undivided prohts. All the paper
We hold h not the property Of our bank.
a. others are interested with US
Il was stated tonight that the total
amount involved II In the neighbOrhood
Of 500. coo and that the Mechanics and
Metals Bank of New York city and a
banking and brokerage house IN that city
have some Of these duplicate warehouse
receipts a. collateral for loans.
The transportation company involved
is tho Delaware and Hudson Railroad
and the banks we're induced 70 lend this
money on warehouse receipts which did
not represent goods IN storage or in
transit but were made available ~ bank
collateral through a conspiracy between
a local freight agent Of the D. and H
discharged q month ago and a representa-
tive Of the firm Of Durant a ElmOre. Il IL
understood that the system has been IN
operation for some time.
An examination of the Affairs Of the
firm IL In progress and an exact condition
Of AFFAIRS will not be known for q day or
two. The local banks hold the Delaware
and Hudson Railroad Company respon-
sibls for tho warehouse receipts which
they hold a. collateral
There have been no arrests made a.
vet