Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-24
FAKE HITS SOUTHERN
Officials Worried Concerning
Forged Bills of Lading.
INVESTIGATION is GOING ON
Determining Extent Railway Is In
volved in Cotton Frauds.
STEPS TO STOP USE OF THEM
10000 Bales Invoiced With Spu-
rious Bills, Declares Member of
Bankrupt Concern.
INVESTIGATION is GOING ON
steps TO STOP USE OF THEM

| A commotion quite out of the ordinary
was created among officials of the South
eTn railway by the announcement yes
terday of the failure of knight, Yancey
& Co, large cotton buyers in the south,
doing business with Boston and Liver
pool.
| Conferences were in progress through
out the day among the Southern rail
| way officials, with a view to determine,
| If possible, how deeply involved the
system may be in what is alleged to be
the issuance Of fraudulent bills of lad
ing on cotton shipments.
Extent Is Not Known.
1t is impossible for the company tc
say definitely yet how many, If any,
fraudulent bills of Iading have been is
sued used in its name.
a thorough investigation of the mat
ter has been instituted by President Fin
ley, through General Counsel Thorn and
Auditor Plant. Until that inquiry is con-
cluded it will not be possible to say
with any degree of accuracy to what
extent the Southern Railway Company
may be involved.
By direction of President Finley. steps
have been taken to prevent the use of
any forged or otherwise fraudulent bills
of lading that may have been issued.
Thus far the company knows practically
little more of the situation than already
has been developed in the news dis
patches from points in the south and
from Liverpool.
President Finley's Statement.
President Finley has authorized the
following statement concerning the mat
ter. expressing desire, at the same
time, not to be pressed for further de-
tails at this time:
"A report has come to us, as It APP
parently has to the public through the
press, that number of fraudulent bills
Of lading have been issued for cotton
by knight. Yancey & Co.. a large cotton
firm recently failed in Alabama.
THE report is that these bills of lading
Have been improperly issued in the name
of a number of railroads. and among
them is the name of this company.
I'VE have not yet been able to ascer-
tain definitely to what extent this has
been done. But the company is taking
all appropriate steps to see that no cot
ton is delivered except on the surrender
of valid and bona fide bills Of lading
fully verified
10000 Bales on Fake Bills.
BIRMINGHAM, Ala, April .23-W.. D.
n eSOlt OF birmingham, a HleulDeT Oh lne
firm of Knight, Yancey & CO., this after
noon made the following statement:
"Thirty-odd thousand bales of cotton
were invoiced with spurious bills Of lad
ing and drawn on, for which. upon in
vestigation, we could find no actual cot
ton. l will not attempt to say who is
responsible for the spurious bills OF lad
ing, but there is no doubt that spurious
bills of ladng have been dealt with
Cotton Dealers Checking Accounts.
NEW YORK, April 23.-The extent of
the loss which may have been caused to
American cotton firms through fraudu-
lent bills of lading, marketed on the con-
tinent and in England. was still far from
definite knowledge today.
George Brennecke. president of the New
York Cotton Exchange, said today that
he had not reached any further details
concerning the Liverpool frauds.
II know one firm said Mr.. Brennecke,
which has lost $4,000. It Is impossible
to say how many other firms have been
hit"
Members Of the cotton exchange and
dealers in cotton are busily engaged to-
day In trying to check up their holdings
In cotton, and telegraphing and writing
to their agents all over the country in
an effort to learn whether they actually
had the cotton for which their bills of
lading called.