The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-07
BANK FAILURE
ALARMS LONDON
Old Established Firm of
Chaplin, Milne, Grenfell
& Co., Ltd, Suspends.
LIABILITIES $15.OOO.OOO?
Failure Due to Operations in
Grand TrC TX of A.
NJ. Grenfell.
HAD S25,OOO,OOO ACCOUNT
ROthschilds Said to Have Tried
to Support Firm-Canadian
Agency Nay Go.
HAD S25,OOO,OOO ACCOUNT
Special Gable Despatch to The srS

Special Gable Despatch to THE srS
LONDON, June 6.-Extensive operation,
In Grand Trunk Railway securities by
Arthur Morton Grenfell. n former member
Of the firm of Chaplin. Milne Grenfeli &
Co.. Ltd. bankers and merchants at q
Princes street are believed to be re-
sponsIble for the suspension OF that firm
to-day. The liabilities. 1t Is said. amount
TO sl5,000.000. The bank was capitalized
at S1.750.O0O. As the firm had always
borne a high reputation the suspension
created great excitement In business cir.
Giles. coming as It did just at the close OF
the weeks business. The outstanding de.
posits are sl.250,0e0.
The Arm carried on n general and prl-
vate banking business and also acted as
promoter OF various corporations. II
was registered fifteen years ago to take
over the business OF Morton. Chaplin &
Co. This was formerly the firm OF Nor
ton. Rose & Co. which at one time was
the London house OF Morton. Bliss n Co.
OF New York. In which Levi p. Morton
was the senior partner.
Fad Account Of e25,OOO,O 900.
Mr.. Grenfeil had been consist
ent bull operator In Canada and es-
tablished the Canadian Agency. backed
by the Bank OF Montreal. for the
exploitation and development OF Ca
madam securities particularly immigra-
ton land. The failure OF Mr.. Grenfell a
few weeks ago disclosed the fact that he
had beer specializing enormously. that ia.
he had an open account amounting to
$4,000. 900 (s26. 900. 0oo) Of Grand Trunk
securities.
For the past fortnight leading London
bankers, including, according to reports In
the city. the Rothschiids and Sir Edward
II. Holden. chairman OF the London City
and Midland Bank. Ltd. exerted every
effort to keep the firm alive The sus-
pension. In the eyes of the City means
that there are grave fears that the
Canadian Agency here is doomed unless
the Canadian Government comes to its
rescue.
The crash fortunately came on n Sat-
urday. a half holiday in banking cir
Giles. and Its effect will not be ascertained
until Monday. THE SUN correspondent
hears that the bigges; financlers OF Lon
don are spending the week end no. In
the country but In consultation In an
effort 10 mitigate the effect OF the crash.
Incidentally II Is rumored that the King
is mot uninterested nor are the leaders of
the Unionist party, to whom Mr.. Grenfell
h. a,,a. ~
adviser.
Report He Relied on Morgan.
A story is current to the effect that
Mr.. Grenfell. relying on the friendship OF
interests close to J. =. Morgan & Co.
was satisfied that Mr.. Morgan would 10
to his rescue Immediately. The story goes
on to say that Mr. Morgan refused to
advance fl0.000,0O0 $3.50, 000,o00l and
this precipitated a crisis. which many
think 10 the most serious since the Barring
failure. A prominent hnancier. who re-
fuses to be quoted. said to-day:
Courses on American ragtime. which
has made English finance ragtimely AID
neurotic."
Alarmlst views OF the suspension can
be discounted. owing to the great social
and political influence Of the firm. aren-
fell being a cousin OF Baron Grenfell, the
former field marshal. The suspension
however. Is a particularly unfortunate ad-
dltion to England's woes at this time OF
social unrest.
Among those who are said to have been
heavy losers In Grenfeirs campaign Is
Earl Grey, father Of Grenfelrs first wife.
Earl Grey visited California on a busi-
ness trip In connection with Grenfell's
formation of a syndicate to take over the
controlling interest in the General Petro-
leum Company of California. Grenfell is
getting out OF the enterprise. but the deal
will be carried out by the other members
of the group 1t Is said that several COM
panies in Canada and elsewhere In which
Grenfeil was financially interested are
affected by the suspension but no further
failures are expected.
Arthur Morton Grenfell Is a distant
cousin Of Edward Charles Grenfell senior
mariner Of the firm OF Morgan. Grenfell
a Co, the London representatives OF j.
r.. Morgan & Co. HE had absolutely no
connection with any o: the Morgan in
terests," a member OF the Morgan firm
said last night.
JUDGE HORNBL0WER SINKING.
Heart Action Sustained by Consts nj
Use Of stimulants.