New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-18
NEW COTTON SN|NDLE
CHARGED BY RECEIVER
AIIeqed False Bills of Ladlng
Crop Up Again in FIGHT for
Assets Made Here.
LOCAL BROKERS ENJ0INED
Steele. Miller & Co.'S Failure
VIII Cost Creditors Here and
Abroad More than a Mill
ion, Says Mr.. Pyle.


In the fight for assets to meet the heavy
liabilities OF the bankrupt cotton brokerage
nrm of Steele, Miller & Co. of Corinth
Miss which failed on May 6. the field of
action was transferred to this city yester-
DAY by the receiver. J. A z. Pyle, who sued
Stephen NJ. Weld & Co. cotton brokers, at
No. s. Beaver street. alleging fraudulent
preferences Mr.. Pyle obtained an injunc-
tion against the Weld company from Judge
Hazel in the United States District Court
restraining it from disposing of cotton,
notes, stocks and bonds alleged TO have
been turned over TO it by the bankrupts.
on April q knight, Yancey Co. failed
for $4,000 at Decatur. Ala, and cotton
brokers in this city we're said TO have lost
more than $4,000 because of failure to re-
ceive cotton on bills of lading upon which
they had advanced money. II was said last
night that the losses here owing TO the
steele, Miller & Co failure would be nearly
as large.
Il is said in the complaint of Mr.. Pyle
that prior to the failure Steele, Miller &
Co. by means Of forged and false bills of
IsdinE. swindled cotton operators in Ger
many. France, Spain Russia and in this
city out OF between 100000 and S1.5oo.0oo.
There has been complaint from abroad re-
Gsrdins this sort of swlndling and the
government. investigating the cotton bust
ness OF the country, has heard Of it.
As soon as the injunction was granted
Marshal Henkel served the papers on the
members Of the Weld company-Stephen
N Edward NJ and Rudolph Weld George
n. Neville ard Robert c Cairns-and also
the New York Dock Company. which is
alleged 10 have received or to be about to
al -yad 70 F7,21 hepr 81
BY the bankrupt firm for Stephen NJ. Weld
& Co.
Weld Makes Denial Here.
Rudolph Weld said last night that his
firm did not have a bale of cotton that it
lad not paid for in the regular course of
business. He also denied emphatically that
there had been any collision with Steele.
Miller & Co. to obtain preference in the
settlement with creditors. Mr. Weld said
that his firm had not been swindled by the
bankrupt firm. Counsel for the Weld COM
rsry will file a general and specific de-
NAL IF the charges made by Mr.. Pyle.
Ny. Pyle set forth in his complaint that
ii was few weeks before the filing Of the
petition in the creditors bill and the petit
non in bankruptcy that the firm Of Steele
Miller & Co obtained. by means OF fraudu-
lent and false bills Of 1ading a vast sum
of money from creditors in Germany
Spain. France. Russia and in this city He
cannot compute the amount the foreign
and domestic persons and concerns were
swlndled out of. but with the cotton which
figured in tho transactions the amount IS
said to be between one and one and a half
millions of dollars
II is declared in the complaint of the re-
oeiver that the bankrupt firm never made
an attempt 10 ship the cotton on which it
obtained the great sum of money. Mr.
Pyle said also that on MAY 2 four days
before the court appointed him receiver. a
member OF the Steele-Miller company sent
message by telegraph to Weld & 60. 20
send 4 representative 10 Corinth and that
M Neville went 10 the Mississippi city
and got securities to the value of more
Than $4,000. and also got Steele Miller &
60. TO ship 10 Weld & Co, a lot of cotton
from Memphis. Corinth. Miss. and from
Greenville. s. q. This. MIR. Pyle says, was
done TO obtain a preference over other
creditors
Dock Company Also Enioined
Expecting that this cotton which Mr.
Pvie alleged was shipped and either had
been received or was sun on the way
would he received by the New York Dock
Company. or mad been received he had
The injunction cover the dock company in
g far as tie cotton which the YIELDS were
alleged 70 have received or to be about to
receive was concerned. The number of
bales charged by Mr.. Pyle TO figure in the
alleged transaction is said 10 be several
hundred
Nj Pyle ends his complaint as follows:
Your complainant would further show that
the Arm Of Steele, Miller & Co is hopeless
~ insoivent, and that the conduct of the
defendants, Weld e. Co. and of Steele
Miller & Co. was in fraud of the rights Of
81 other creditors. and is an effort on their
Part 10 gain 2 preference over the other
creditors
The Involuntary petitions in bankruptcy
against the Corinth firm were filed in the
federal district Of the Northern Division of
Mississippi on May by s Cohn and other
local creditors, and by Knoop & Febarius
and other creditors i'm Bremen Germany
Judge Niles granted the petitions al Jack
son Miss W. !. Lamb Is the counsel for
the receiver. and has been here since last
Friday looking up facts in connection with
the petition fer an injunction