New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-07
BANKERS
SUSPEND PAYMENT
Chaplin, Milne, Grenfell &
Co. Unable to Meet
Liabilities.
rBy Cable TO The Tribune. !

ures which has occurred in London Tor
many years was announced to-day. "heh
Chaplin. Milne, Grenfell & CO. posted
notice on their doors that they had sus-
nended payments later announcement
said that the books Rad been placed III
the hands Of chartered accountants ana
that there would be no further announce
ment until tho accountants report was
completed. The failure is estimated N
the City at figures varying from S-0'VD'-
900 TO 100000. while the firm Sto;
Exchange interests are so involved that
It is feared there will be several other
suspensions. Later estimates, however,
reduce these figures materially.
The suspended firm conducted business
as merchants and bankers at Princes
St, opposite the Bank of England. The
company. which was registered in 1889 20
take over the business Of Morton, Chap
lin & CO. formerly Morton, Rose & Coz,
had an authorized capital Of 81, 10000. IL
conducted general and private banking
and company promoting business. The
directors include Ernest Chaplin, q. I'll
nell Milne and X. W. Skipwth
extending over a long period OF a lonG
line OF Canadian securities, notably Grand
Trunk, in anticipation of a generally pre-
dicted stock market recovery, but the con-
stantly falling prices made the huge load
more and more difficult to carry, and
few weeks ago some heavy liquidation in
Canadians caused reports on the Stock
Exchange OF the impending failure OF an
unnamed firm which later cryStallized into
the statement that an important private
operator not n member Of the exchange
was in trouble. This was followed by the
statement that American interests had
come to the rescue OF the operator with
an advance OF s2j,OG0,OO0 TO take the bal
ance OF his line of Canadians off his
hands. and almost simultaneously the re-
trcment of Arthur Morton Grenfell from
the Chaplin-Milne firm was announced.
Earl Grey. whose daughter was Grenfell s
first wife is reported TO be among the
creditors.
Arthur NJ Grenfel is a member or a
well known family of bankers and brokers
which includes Field Marshal Lord Gren-
fell dis uncleJ and the Grenfell of Nor
gan, Grenfell e. CO.. which is the London
branch Of J. T. Morgan & Co 1t is gen
orally believed that it was the Morgan
company of New York which came to
the rescue recently. II now appears, how
ever. from the guarded statements made
that the negotiations failed on account Of
the high level of prices at which the
greater part Of the securities had been
acquired and the futility OF hoping for a
recovery within any reasonable time. and
the failure Of the negotiations involved
the downfall of the firm
The affairs OF the bank were largely
involved with those of the Canadian
Agency. Limited, which is controlled by
Arthur Grenfell. lie and the Canadian
Agency had been engaged in campaign.
described as one OF the most daring Of
recent years. for the purchase of con-
trolling interest in the Grand Trunk
Railway.
Arthur Grenfell also recently formed
group for the purchase of controlling
interest in the General Petroleum Com
pany OF California and Earl Grey has
been visiting California in connection
with the negotiations. Grenfell is re-
firing from the transaction, which will
now be carried through by other members
Of the group.
The members OF GrcnfelIs family. 1t
is believed, will come TO his assistance in
the settlement of his affairs
Los Angeles. Cal, June 6.-The sus-
pension in London to-day of the bank
ing house of Chaplin. Milne, Grenfell &
Co. will have little or no effect on
the oil deals OF British capitalists in
California. J. 7. Currie. representative
here of the Welr-Smith interests, which
recently purchased control OF the Union
OIL Company, a S5OCO0,O00 corporation,
made a statement to that effect to-day.
Arthur Grenfell one-time partner I'm
the suspended firm and one OF the or
ganizers of the British syndicate which
has been active in California for some
time, had only a comparatively small
interest in the pool represented by
Andrew Weir and r. Tilden Smith in the
recent negotiations which resulted in the
transfer OF Union Oil. Mr.. Currie said.
J. Pierpont Morgan. head Of the firm OF
J. p. Morgan & CO., Of this city, denied
last night that his firm had attempted
to avert the failure of Chaplin. Milne,
/ Grcnfell 81 Co. OF London. by taking over
part of their market commitments IN
Grand Trunk and other Canadian secul
ties. as reported from London. He said
that the failure of the London FIRM was
not nearly as large or as sensational as
had been reported, and that its assets
were IN pretty good shape. but perhaps
could not be realized upon to the extent
OF keeping the firm in business
The matter OF helping the Chaplin.
Milne. Grenfcll firm was discussed by mem
bers OF our firm here, but no action was
taken" said Mr. Morgan. The firm was
not in such n position as to render pos
sible our London firm coming to its az
slstance The failure of the Chaplin firm
does not involve anywhere near the
, amount of money reported. II is not an
/ important failure from that point O
view"