The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1911-07-13
GRAIN HEAD IS J
. SHORT 100000
Pettit's Deficit Due to Unauthor-
lied Deals.
FIRM ISSUES A STATEMENT
officials Of r. n. Peavey Company De.
clare That Drowned President
Did Not Personally Profit
by Irregularities.

st. Paul, Mimi, July Thames
Petit, president and general manager
Of the Peavey Grain company of Chi
cago, whose death occurred by drown
Ing at Chicago on July s, was short
approximately 100000, according to
a statement issued from the Offices of
+. II. Peavey & Co, the parent of
dozen subsidiaries, which is the owner
of the stock Of the Peavey Grain COM
pany.
The statement was issued from the
Minneapolis Office, after a conference
with representatives of Minneapolis
and Chicago banks and commercial
paper houses of Chicago holding notes
tioated by Mr.. Petit in the name of
the Peavey Grain company. The state
ment says in part:
Company Announces Shortage.
ION Saturday afternoon, July s,
following the death of James Petit, a
representative of F. H. Peavey & Co,
who had been sent to Chicago to as
sist in the office Of the Peavey Grain
company during Mr.. Pettit's Illness,
discovered that certain unauthorized
and concealed speculations had been
going on in the business, which subse-
quent investigation proved will result
in shortage of approximately $1,000
600.
Mr.. Petit has apparently in no way
profted by these speculations, and
they were carried on absolutely con-
trary to the instructions and without
knowledge of F. II. Peavey & Co.,
and in direct violation of the well
known policy of the Peavey company"
The statement adds that the officers
of the banks in Chicago and Minneap-
oils concerned were called together
and advised of the situation. and that
a meeting OF all concerned was held
in Minneapolis.
=. II. Peavey Company Not Affected.
F. III. Peavey & Co.'S interests in
the Peavey Grain company arise from
the fact that they are owners of the
stock Of the Peavey Grain company Of
Chicago. Just what condition the
Peavey Grain company is in the Off
Gals at Minneapolis would not say.
We wish IT understood" said Vice
President Wells, that neither F. H
Peavey & Co. nor any of its sui III,
iaries is directly affected in this mat.
ter The company never deals in
grain. and, in fact. the only brokerage
business we ever did was through the
Chicago house Of which MI Petit was
IN charge.
Now that Mr. Pettit's credit is gone
we will close down The question
which remains is whether the holding
company will shoulder the burden of
the shortage"
May Exhune pettit's Body.
! Chicago, July 12-Followtng the
discovery of a million dollar shortage
in the accounts Of James Petit pres
ident of the Peavey Grain company
! insurance companies which carried
large risks on Petit that were not
payable in the event of his suicide
started a searching investigation
which. it was declared, might lead tel
a demand for the exhumation Of the
body Of the dead broker
Speculation on the board Of trade
is said to have been the cause Of
Pettit's shortage, most of the money
to meet the losses having been oh
tanned from various banks which made
advances on notes of the Peavey
Grain company, signed by James Pet
tit as president, and which in some
cases we're secured by collateral Sc.
curties belonging to the grain com
pany of which he was president, but
In other cases secured only by Pettits
personal signature and the grain
company's liability.
Banks Assured Protection.
Among the banks which advanced
large sums of money % Petit we're
the First National of Chicago and
the Corn Exchange National bank
Officers of these banks received as
surances from the directors of the |
Peavey Grain company that all liabil
titles would be met. whether they
we're those of the company or Pettit's |
personal obligations. Most of this |
money is believed to have been lost
In an attempt to corner the oats mar
ket about two years ago. when Petit
and George W. Marcy we're suspend |
ed from the board of trade for one |
day for their manipulation of the
market