Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-05-24
Alleged Manipulation Of
Warehouse Receipts.
Banks and Commission Brokers
Hold Firms Paper.
Banks Say They Will Look 10 Rail-
roads for Reimbursement.

| Albany, N. Y, May 23.-The firm Of
Durant & Gilmore, grain merchants,
! with offices in Albany, Chicago, Buff
falo and Boston, is practically In the
hands Of the officials of the National
Commercial and First National Banks
| of this city who are it's creditors to
the extent Of nearly 100000. BY the
alleged manipulation of bills Of lad
| ing, the company Is alleged to have
been able to borrow hundreds of
thousands of dollars from banks in
Albany and other cities. The total
amount involved has not been ascer-
tanned. 1t is understood, however,
that the firm has outstanding paper
aggregating between 100000 and $780,
900.
r Just where the money went has not
been told but it is said the firm was
dealing heavily in the grain market.
Word came to this city from Bos-
ton recently to the effect that some
of its paper had been refused in that
city and Immediately representatives
of the National Commercial and First
National Banks asked for an explana.
ton. They were unable to clarity the
situation.
Henry c. Palmer who was freight
agent of the Delaware & Hudson Rail-
road Co.. until about eight weeks ago.
and whose name has been mentioned
in connection with the matter, today
said: 4rt
Il am innocent of any wrongdoing."
The hanks which are creditors of tho
firm and which suffered from the use
of the unredemed bills of lading, 1t Is
said, win look to the railroad COM
panies for reimbursement.
Albany, N. Y, May 23.-Through
the alleged manipulation Of ware
house receipts the firm of Durant &
Elnore. grain merchants. with of
fees in Albany, Chicago, Buffalo
and Boston, has become involved In
financial tangle,, which promises
sensational developments. The Ma.
tional Commercial Bank of Albany
holds the company's paper for $780,.
900, the First National Bank has ST.
200 and many thousands more are
said to have been secured from out
of town institutions. 4
According to a statement by Vice
President James H. Perkins of the
Naticpal Commercial Bank, the com.
pany is "hopelessly involved"
I'VE are informed" says Mr.. Per-
kins, that eight or nine banks hold
the firms paper. besides grain COM
mission brokers with whom the firm
has dealt and number of individ-
uaIs"
The exact condition of the firms
affairs is not shown, but an exami.
nation is underway. Gibson oliver,
the treasurer of the company, had
charge of the affairs of it's Albany Of
flee, according to members of the
firm, but no statement from him as to
the alleged shortage has been forth
coming.
Edmund L. Elmore, a member OF the
firm who was summoned from Chi
cago, is assisting in the examination.
The scheme by which the money Is
alleged to have been secured was q
simple one. AS soon as q carload or
grain was shipped from Chicago Tor
the local firm the manager received a
warehouse receipt. This was In the
regular course of business. Later on
the warehouse receipts are said to
have been so manipulated as to make
possible the heavy loans from the
banks upon the bills as security.
The men whose duty Is said to
have been to take UP the warehouse
receipts when the grain was actually
delivered by the railroad company, t
is alleged, did not do so. and hence the
genuine bills were used over again.
President Frederick A. Mead Of the
First National Bank said today that
his bank holds $77,20O Of the Durant
& Elmore paper bearing the personal
endorsement Of Messrs Durant. FL
more and oliver and secured by origi-
nal bill of lading drafts deposited az
collateral security for the loans. The
company, he said. had been gradually
withdrawing it's business from the bank
for some time past. Careful investi-
CATION led him to believe that the bank
would be amply protected from any
loss.
Il do not believe the banks will lose
any money! said Mr.. Mead. They
will hold the railroads responsible. We
look to the railroad officials to take
the initiative" 49,
The Durant & Elmore Co. is UNDER
stood to have grain in Oneonta and In
Boston valued at about 100000 and
considerable additional grain in tram
sit from the West. The company also
owns the business of the Oneonta Mill
ing Co. Edward A. Durant, one OF the
firm, is said to have agreed II neces-
sary to turn over to the creditors Of
Continued on Page Twelye.)