Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-09-19
RECEIVER PROBES
STOCK FIRM LOSS
Day & Heaton's Assets Esti.
mated at $1,000, 900.
Liabilities at $1,700,0 900.
BY the Associated Press.

BY the Associated Press.
NEW YORK, September ia re-
ceiver in bankruptcy, aided by account
ants, today began an investigation to
determine the losses to creditors as a
result of the failure yesterday OF Day &
Heaton, New York Stock Exchange
firm for So years. 1t is estimated that
the liabilities are s1,700,000 and the as
sets 81 100000.
The firm was suspended from the ex
change after five of the six members
had given notice that because of the de-
| falcation and disappearance of the sixth
member. George r Christian. the firm
| would be unable to meet it's obligations.
Later a petition in bankruptcy was
| filed by three customers with claims of
| $4,000. Speculations by Christian.
who was known as bear trader.
| we're said to have caused his difficult
| ties. He left recently for a vacation in
Canada. member of the firm said, but
instead of returning he wrote his
partners a letter which caused them to
notify the exchange of the firms condi-
ton.
Firm Founded 1871.
The firm was founded in 1871 by Will
liam Weaver Heaton and the late Henry
Mills Day. Mr.. Heaton is IS years old.
Christian, who is As, became a member
of the firm in 1919. He became an en-
ploye of the firm % years ago as an Of
flee boy.
After the receipt of the letter Day
& Heaton sent the following announce
ment to the president of the stock eX-
change:
disappearance of one of our partners.
| George II. Christian, and in view of
| the unknown amount of the loss we
| have sustained, for the protection of
| our customers and creditors we here
| by announce our inability to meet our
| obligations"
| The suspension of the firm from the
exchange followed, and later it was
petitioned into involuntary bank
ruptcy.
Say He Sold Short.
| Back of Mr.. Christians defalcation,
it was openly asserted in brokerage
! circles last night, lay a story of heavy
| losses encountered in stock market
| speculation. The missing broker was
said to have been an active short
seller of stocks last Spring. when the
market was on the down grade.
| Extending these operations through
| out the Summers advance, Mr.. Chris
I tian was reported to have suffered
| losses on which he was pressed for
| settlement. His disappearance coin
cided with the peak of the upward
| movement, which would have been
disastrous to any broker who had
consistently sold stocks short.
! Three of the suspended firms six
| partners held memberships on the
New York Stock Exchange. They
were: William Weaver Heaton. Will
| liam Wilson Heaton and Harry ".
Day. Office partners, in addition to
the missing member, were James H.
| Waterbury and F. w. Giffin. The
three stock exchange seats, it was
| pointed out, would constitute almost
100000 of the firms estimated ST.
100000 assets.
Respect for Henton.
The high regard in which William
Weaver Heaton, a senior partner. was
held was attest by resolutions passed
by the governing committee of the
New York Stock Exchange upon his
retirement as a governor in 1920.
In more than SO years of member
| ship he served on virtually all i'm
| portant committees of the exchange
and held many responsible positions
| Copies of the resolutions, dis
tributed by the stock exchange yes
terday. said that the governing COM
! mittee desired to express it's deep
sense of the great loss to the ex