New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-15
MEMBER Of H0LL|NS CO.
IS FACING CHARGES
Stock Exchange Investigation
Under Way at Time Broker
age Firm Failed.
TROUBLE BEGAN IN 1911
LAWYER Says Complaint Is
Against Business Methods of
Concern and Involves Flota-
ton of Keystone Co.

Charges OF a sensational nature, In
volving a member OF II. b. Hollins u
Co. were under consideration by the
officials of the Stock Exchange at the
time the big banking and brokerage firm
announced its suspension, on Thursday.
This was learned yesterday through the
statements of Eliot Norton. lawyer, Of
No Rector street. who filed the charges
for his client.
| Each OF the forty governors OF the
Stock Exchange" said Mr.. Norton. "as
well as the president and secretary or
| the exchange, was given n copy of the
charges. They are sworn to by my client.
who is an agent of group OF men whose
names are known all over the country
and are a complaint against the methods
of business which the Hollins firm en-
/ ployed.
| 81 am not al liberty 10 give the details
or 10 divulge the name of my client at
| the present time. In general however.
! they concern n man still a member OF
! the Hollns firm, and are I'm regard 10
/ transactions in connection with the fiota-
| ton OF the keystone Materials Company.
I'm which the Hollins firm is heavily inter
| osted
THE trouble with the firm. growing out
Of representations made to my client ny
! this member, was started almost two
] years ago After 1t became impossible 10
| obtain any satisfaction from the firm, the
charges. taking up twelve pages Of print
Ell matter. were presented 10 the Stock
| Exchange officials. 10 call their attention
/ 10 the condition OF the firm. Within the
| last two weeks the charges were referred
! 10 n special committee. and this COM
miitee is stlil investigating the transac-
/ ton"
! While II had been rumored for some
| time that reflections had been made. pre-
sumably by an investor, upon one Of the
| offerings 81 the Hollins house. 1t was not
until yesterday that II became known
| that the firm was the subject OF official
! action by the exchange. None OF the
/ governors would say who had made the
charges or what was alleged In the de-
! tails OF the complaint. nor could 1t be
! learned how much financially was IN
volved In the matter. The charges. 1t
was stated. do not include n request for
! reimbursement, bpt are only protest
/ against certain business methods.
! Both the governors and L. added Mr..
! Norton. ARE Of the opinion that until
official action is taken by the Exchange
we are bound 10 keep the matter In con
! ndence. II my Client decides 10 bring
| suit for damages. however, the whole
! matter naturally will be disclosed
The keystone Materials Company. Of
! 40. ll6 West 32d street. was one Of the
recent promotions OF II. B. Holllns q 20.
/ Its president was William Guggenheim. OF
/ the prominent family OF Guggenheims'
| and II was understood he had the back
| Ing ~ his relatives. II. b. Hollins was
director Of the company and two OF the
members Of his firm were officers.
| The company was capitalized at $4,000
| : per cent cumulative preferred stock and
| e. 900 common stock. II was a hold
! ing company for several subsidiaries maxi
| ing asphalt. cement and gypsum products
! the ACQUISITION OF some OF these com
panies not having been completed. III
! was IN reference to the acquisition OF the
subsidiaries Il was said. that the charges
/ to the stock Exchange were made.
| Two of the firms creditors are j. /.
! Morgan & Co. and william X. Vanderbilt
The former, 4 was announced, lent ABOUT
! 10000 TO the firm. whose head was a
| close friend Of the late J. i. Morgan, out
| these were call loans on excellent col
| lateral The Indebtedness To w. *. van
derbilt, Il was said. is not heavy. Prl-
vate loans were distributed among two
or three individuals and will comprise but
a small portion Of the total liabilities.
A. Leo Everett. who was appointed re-
ceIver for II. B. Hollins a Co. on Thurs
| dav. said that II would probably be n
week before a complete accounting could
he made. lie added. however. that OF the
| total liabilities approximately 2Ao.cO
consisted Of call loans among the leading
Wall Street banks. secured by Stock Elk
| change collateral.
The receiver has devoted much OF his
| time I'm making up the failed companys
weekly payroll.
my time is now taken up with such
| sub-lunary details as getting money for
the boys around the Office" was his COM
ment