Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-05-23
BILLS USED OVER AGAIN
ALLEGED MANIPULATION OF
WAREHOUSE RECEIPTS.
Durant & Elmore, Grain Merchants,
Indebted to Banks for Many
Thousands.

] ALBANY, N. Y. May 23.-Through the
| alleged manipulation of warehouse re-
ceipts the firm of Durant & Elmore. grain
merchants, with offices in Albany. Chi
cago, Buffalo and Boston. has become
| involved in a financial tangle which
promises sensational developments. The
National Commercial Bank of Albany
holds the company's paper for 100000,
| the First National Bank has S77,500 and
many thousands more are said to have
been secured from out-of-town institu-
| tons.
| According to a statement by Vice Presi-
dent James H. Perkins Of the National
Commercial Bank. the company is
"hopelessly involved
I'VE are informed" said Mr.. Perkins,
that eight or nine banks hold the firm S
paper, besides grain commission brokers
with whom the firm has dealt, and a
number of individuals"
The exact condition of the firms af-
fairs Is not known. but an examination
is under way. Gibson Oliver, treasurer
of the company, had charge of the affairs
of its Albany Office, according to MEM
bers of the firm, but no statement from
him as to the alleged shortage has been
forthcoming.
Edwin w. Gilmore, a member of the
firm, who was summoned from Chicago,
is assisting in the examination. The
scheme by which the money Is alleged to
have been secured was simple one. As
soon as a carload of grain was shipped
from Chicago for the local firm the man
ager received a warehouse receipt. This
was in the regular course or 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 man whose
duty is said to have been to take up the
warehouse receipts when the grain was
actually delivered by the railroad COM
pany, 1t is alleged, did not do SO, and
hence the genuine bills were used over
again.
Banks Believed to Be Secured.
President Frederick A. Mead of the
First National Bank said today that his
bank holds $77,20O of the Durant & Ell
more paper bearing the personal indorse-
ment of Messrs. Durant, Elmore and
Oliver, and secured by original bill Of
lading drafts deposited as collateral Sc
curity for the loans. The company, he
said, had been gradually withdrawing its
business from the bank for some time
past Careful investigation led him to be-
| lieve that the bank would be amply pro-
rected from any loss.
Il do not believe the banks will lose any
money, SAID MI. Mead. 1ney Will mold
the railroads responsible We look to the
| railroad officials to take the initiative
The Durant 4 Gilmore Company is I'M
derstood to have grain in Oneonta and
in Boston valued at about 100000. and
considerable additional grain in transit
from the west. The company also owns
the business of the Oneonta Milling Com
pany. Edward A. Durant, one of the
firm. is said to have agreed, if necessary,
to turn over to the creditors of the COM
tyNo oil h4
Some time ago Henry c. Palmer, freight
agent of the Delaware and Hudson Com
pany in this city. was dismissed from
the company's employ, and a few weeks
later left for Chicago, where, it was
said, he had entered the employ of Du-
rant & Gilmore.