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MAGIC and MYSTERY, MONDAY. GET TICKETS TODAY for "BEAUTIFUL BAGDAD." Banking Firm Failure. Cleveland, O., Jan. 10.-The formal announcement of the suspension of Denison, Prior & Co., investment bank ers and brokers was made on the stock exchange this morning. This had the result of the banks throwing out a large number of the firms checks. L. W. Prior, member of the firm committed suicide yesterday.
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The Suicide of Banker Prior of Cleveland. His Banking House Suspends, Its Checks Being Refused. Said That Banks Hold Ample Funds to Provide for All Claims. anCleveland, Jan. 10.-Formal nouncement of the suspension of the firm of Denison, Prior & Co., investment bankers and brokers, was made on the floor of the Cleveland Stock Exchange this morning. This action was taken as a result of a large number of the firm's checks being thrown out by the banks, who hold that since the death of L. W. Prior, who committed suicide yesterday, the checks could not pass the Clearing House. It is said that the banks hold ample funds and securities to provide for all claims against the firm. Secretary Wade of the Cleveland Stock Exchange made an official statement today concerning the suspension of Denison, Prio & Co., in which he says that their failure on the Cleveland Exchange is a mere technicality of abiding by the rules, and that there is absolutely no possibility of any firm or member of the exchange being in the slightest degree involved or suffering any loss.
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SUSPENSION STATED Action Taken by Bankers Holding the Checks of Late L. W. Prior. Cleveland. Jan 10.-Formal announcement of the suspension of the firm of Denison. Prior & Co., Investment bankers and brokers, was made on the floor of the Cleveland Stock Exchange This action was taken as the result of a large number of firms' checks being thrown out by banks, who hold that since the death of L W. Prior, who committed suicide Tues. day. the checks could not pass the clearing house It is said the banks hold ample funds and securities to provide for all claims against the firm
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PRIOR'S FIRM SUSPENDS. Checks Could Not Pass Clearing House-Conflicting Rumors. Cleveland, Jan. 10.-Formal announcement of the suspension of the firm of Denison. Prior & Co., investment bankers and brokers, was made on the floor of the Cleveland Stock Exchange this morning. This action was taken as a result of a large number of the firm's checks being thrown out by the banks, which held that since the death of L. W. Prior, who committed suicide yesterday, the checks could not pass the clearing house. It is said that the banks hold ample funds and securities to provide for all claims against the firm. Secretary Wade of the Cleveland Stock Exchange made an official statement to-day concerning the suspension of Denison, Prior & Co., in which he says that their failure on the Cleveland exchange is a mere technicality of abiding by the rules, and that there is absolutely no possibility of any firm or member of the exchange being in any way in the slightest degree involved or suffering any loss. "The Cleveland News" to-day says: Following reports that the suicide of Leland W. Prior was due to disastrous dealings, involving practically all of his own fortune, if not the as to the customers, firm's capital many rumors and margins losses placed incurred by by the last named were in circulation to-day. One had it that Mr. Prior had represented a pool composed of Cleveland men in copper transactions involving more than 15.000 shares. Profits of something like $15 a share, or at least $200,000 in the aggregate, were sacrificed by the suspension of the firm. according to this story, which seemed to owe its persistence to reasonable foundation, and the members of the pool, as well as individual traders, were in danger of losing at least part of their actual margin investment. According to Chairman Newcomb of the bankers' committee, which is investigating the books of the firm, it will require several days before the exact condition of affairs can be known. The offices of the firm remained closed to-day. Boston, Jan. 10.-D. C. Clark, who, in the absence of Charles E. Denison, was in charge of the offices of Denison, Prior & Co. in this city, to-day had received no word directly from Cleveland, when informed of a press dispatch announcing the suspension of the firm. The local office of the company was closed later on information received from Cleveland. Leland W. Prior had been a member of the New-York Stock Exchange since 1901. His firm. Denison, Prior & Co., had several correspondents here, the principal ones being E. & C. Randolph and C. I. Hudson & Co. It was said here to-day that the firm was one of the largest in the Middle West. Its principal Eastern business was in municipal bonds, which it disposed of through its Boston branch. It also did a grain business in Chicago and a cotton and stock business in this city. It was said that the business here was amply margined, and there was no possibility of any New-York house suffering from the failure. In regard to the report that Mr. Prior killed himself because of his private speculative losses, nothing could be learned here, but the idea was generally discouraged.
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SPURIOUS BONDS AMONG ASSETS BIG CLEVELAND BANKING FIRM SUSPENDS Denison, Prior & Co. Insolvent-Frank Rockefeller Denies Any Connection With the Bankrupt Concern -By Associated Press. CLEVELAND, O., Jan. 11.-The bankers' committee which investigated the affairs of the banking and brokerage firm of Denison, Prior & Co., which closed its doors following the suicide of L. W. Prior on Tuesday, made the following authorized statement late this afternoon: "The examination of the books of the firm has not yet proceeded far enough to make any complete statement possible. Enough has been learned, however, to warrant the committee in stating that it is forced to believe that the firm of Denison, Prior & Co. is insolvent, but to what extent we cannot as yet say. We are also convinced- that a number of municipal bonds have been forged." Frank Rockefeller, referring to reports persistently circulated during the past two days to the effect that he was one of the heaviest creditors of Denison, Prior & Co., said today: "For over a year I have not paid to or received a dollar from the firm of Denison, Prior & Co. "The various sensational stories indicating that I am heavily involved with S the firm are absolutely without foundation." The fact that the firm had been using spurious securities was made known several days before Prior committed suicide. Those who had a right to demand a statement of the facts from Prior made the demand. To their surprise they were refused point blank one word of information and without a tremor, it is said, Mr. Prior told them if they persisted he would take the secret where no power could wrest it from him. The discovery of the spurious securities was made by Cleveland men h last week and was promptly put before Mr. Prior Monday when he returned from New Yrok. 1 The only spurious issues yet found are among the municipal issues and thus far they are among the securities from smaller Ohio cities. Among the former patrons of the firm the belief is growing that practically the whole list of available assets have disappeared and nothing will remain in the once flourishing business save the large debts due to the patrons. The securities in the collateral loans, the seats owned at the various stock exchanges and other things may swell the assets somewhat, but the traders stand to suffer severe losses according to the present outlook.
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PART I 1-Rebels try to capture train. 2-Grosvenor and Williams fence. 3-Loss by fire, $100,000. 4-Editorial. 5-City news. 6-Plan new church in Gothic style. PART 11 1-Political moves tremble in air. 2-Sports. 3-Markets. 4.5-Classified advertisements. 6-Southern California news. EASTERN Grosvenor and Williams debate Philippines tariff bill in the house. Secretary Wilson makes strong appeal for further appropriation for meat inspectors. Big Cleveland banking firm of Denison, Prior & Co. suspends. FOREIGN Russian revolutionists make daring attempt to capture military train. Witte says government will promptly suppress any effort to make constitutional assembly. W. J. Bryan made a datto by natives of Mindanao. COAST Project is on foot to harness Feather river and develop 400,000 horse power. Runaway horse in British Columbia drags rider for miles. Canners' league of Southern California convenes in San Francisco. LOCAL Burglars rob big city jailer. Out of money, Philadelphian commits suicide. Clever robbers work disguised as negroes, say police. Chauffeur's salary three times greater than that of mayor. $100,000 goes to smoke and ashes in big fire in Douglas building. New Church of Our Lady of Loretto to be highest edifice in city, Probable political changes give a strained air to city hall. Council's orders are to grant no spur track to either Southern Pacific or the Santa Fe in alley east of Santa Fe avenue. Fate of voting machine contract depends on vote of Councilman Ford.
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FRIDAY EVENING. JAN. 12, 1906. Forged Bonds Discovered. With the announcement in Clevelaud, O., yesterday afternoon by the bankers' committee examining the accounts of the brokerage and banking firm of Denison, Prior & Cc., that ferged bonds had beeff discovered, the primary motive for the suicide Tuesday of Leland W. Prior, president of the firm, became known Prior is believed by the bankers who are probing his affairs to have sold forged municipal bonds in various parts of the country to the extent of at least $100,000. In addition he was heavily involved with customers for whom he was supposed to be carrying New York Stock Exchange accounts. Who engraved these bonds and who assisted Prior in disposing of them has not been revealed. but the bankers' committee, which has charge of all the affairs of suspended firms has put detectives to work and arrests may be expected. That there must have been several confederates employed in the manufacture of bogus certificates seems clear. The bonds were sold in sn 2 l lote, some in Cleveland, others in northern Ohio and others in Michigan. Still others were distributed, it is believed, through bond houses in the east. This much has been discovered. The bonds were not sold in large quantities to any one inves. tor, and the individual losses will not be heavy. In all cases, it is stated, the loss will fall upon individuals well able to suffer the loss. One of the men employed in the investigation said yeaterday that the failure will probably amount to $1,000,000 or $1,500,000.
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SUSPENSION STATED. Action Taken by Bankers Holding the Checks of Late L. W. Prior. Cleveland, Jan. 11.-Formnl announcement of the suspension of the firm of Denison, Prior & Co., investment bankers and brokers, was made on the floor of the Cleveland Stock Exchange. This action was taken as the result of a large number of firms' checks being thrown out by banks, who hold that since the death of L. W. Prior, who committed suicide Tuesday, the checks could not pass the clearing house. It is said the banks hold ample funds and securities to provide for all claims against the firm.
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LIABILITIES $900,000 Not Including $1,000,000 Forged Bonds, for Denison, Prior & Co. Cleveland, O., Jan. 15.--According to a statement made tonight by H. R. Newcomb, of the bankers committee investigating the affairs of Denison, Prior & Co., which is in the hands of Receiver Thomas K. Bushnell of Cleveland, a former judge, who was named today, the developments today show that the gross liabilities of the firm will be $900,000, not including the $1,000,000 in supposedly forged securities. The assets of the firm, Mr. Newcomb believes, will be about $500,000. Mr. Newcomb believes that few of the forged bonds were placed into banks outside of Ohio, and maintains that the forgeries were used as collateral mostly in Cleveland. That would make the extent of the involving of outside financial institutions small, Mr. Newcomb said. The amount of the bond forgeries were increased today by $300,000 and new total $1,000,000. The private safe of Mr. Prior was opened today after three days work by experts. It is said that it contained no papers or memoranda that would disclose anything in learning the status of the firm's affairs. Among the contents of the safe were insurance policies for $100,000 on Mr. Prior's life, none of which were invalidated by suicide.
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DOMESTIC. Fire did $100,000 damage to property of the New York Lubricating Oil Company, in Water street, Expert accountants declared that the forged municipal bonds which caused the suspension of the firm of Denison, Prior & Co., of Cleveland, Ohio, after Mr. Prior's suicide, may exceed $100,000. New York State enumeration gives six new Supreme Court judges for Manhattan and seventeen for the Brooklyn district of New York City. E. H. Harriman and two others bought a tract of 20,000 acres in Orange County, N. Y. It is supposed they plan to develop a new colony on the lines of Tuxedo. Dr. Harry T. McGronen, of Brooklyn, N. Y., was crushed to death by an elevator in a factory. District Attorney Jerome, of New York County, N. Y., is preparing to prosecute guilty insurance officials. Protests against the seating of McGowan and five Aldermen were made before the Aldermen's Committee on Privileges and Elections in New York City. The Clyde Line steamer Cherokee went ashore in a fog near Atlantic City, N. J. The vessel was in little danger, and the passengers and crew remained aboard. The 545-foot steamer Joseph Sellwood was launched at Lorain, Ohio. Deputy Commissioner O'Keefe, of New York City, ordered that hazing of new policemen be stopped. The Federal Grand Jury, at Butte, Mont., has indicted Daniel B. Jacobs for running a lottery. Nothing has been learned regarding the $18,000 express package lost between Augusta, Ga., and New York City. John M. Pattison, of Cincinnati, Ohio, who defeated Governor Myron T. Herrick by 61,000 plurality, was inaugurated Governor at Columbus. Making a short cut to his home, Dr. Harrison S. Hathaway was struck by a train on a trestle at Toledo, Ohio, and killed. William M. Ivins, addressing a Brooklyn, N. Y., congregation on dishonest upbuilding of wealth, criticised Rockefeller. A motion for a rehearing of the case of "Bluebeard" Johann Hoch, under death sentence for wife murder, has been filed at Springfield, Ill. Two railroad men were killed and three hurt in a head-on collision of freight trains on the Burlington road near Woods Station, Mo. The Newfoundland west coast fishing season has practically been ended by ice and American vessels are leaving with about half cargoes. The Commercial Savings and Trust Company, at Memphis, Tenn.. will liquidate the affairs of the defunct American Savings Bank and Trust Company. Shot through the body, O. W. Meadows, a farmer, was found dead in his buggy at Milledgeville, Ga., probably a victim of robbers. An eighteen-ton flywheel at the Morgan Engineering Works, Alliance, O., burst, without killing any of the many men working around it.
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FAILURE WAS DISASTROUS. Liabilities of Cleveland Bank Nearly Two Millions-Assets Half Million. According to a statement made at Cleveland, Ohio, Monday night by H. R. Newcomb of the bankers' come: tee investigating the affairs of Denison, Prior & Co., which is in the hands of a receiver, the latest developments shows that the gross liabilities of the firm will be $900,000, not including the $1,000,000 in supposedly forged securities. The assets of the firm, Mr. New comb believes, will be about $500,000. The recent sudden death of former Mayor Brenton D. Balcock, from heart disease, may have been caused by the Denison, Prior & Co. failure. Mr. Babcock's friends assert that he had his savings, less than $10.000 invested with Mr. Prior, and that when Mr. Prior committed suicide, it so affected Mr. Babcock that he became a victim of apoplexy.
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If the Prior Series Are Not Returned the City Water Works Extension Bonds May be Withdrawn. Failure of the Demand May Meet With a Suit for Their Recovery. Local Officials in Conference. Cleveland, O., Jan. 16.-The city all of Canton has demanded the recurn of the torged Canton bonds that L. not W. Prior put out. If the bonds are in within a short time, withdraw the water WORKS turned may and exten- accity isbonds from the market, series. bonds not be sion sue spurious a refunding returned, Should the the also BUS for their recovery. the Johnson, attorney committee, and also w.y bankers' H. may H. for for bonds, the of the spurious Canton Ashbrook, and Wm. Day, & of holders met Canton, Armstrong city city Miller auditor attorat the offices of Hayden, ney, Co., Monday arternoon and promised them that the bonds would all be turned in by Feb. 15, when the next pay1 ment of interest is due. the meantime Kountze & Co., of have been ordered to of interest New the In payment York, of water stop This h e works extension bonds of Canton. e order may be extended to other series susif there should later arise any picion that there had been additional e torgeries. ( The bankers' committee which has been handling the affairs of Denison, rePrior & Co., since the firm failed of g tired Tuesday morning in favor apThomas H. Bushnell, the receiver Monh e pointed in United States court day. Accompanying the committee's relinquishment of the bankrupt firm's authaffairs, the following-statement, out orized by the bankers, was given by Chairman H. R. Newcomb: investigating committee had this morning and a returns possible made to fullest "The meeting had having them. the feeling is, a receiver in the to and matters turned over been Their court, appointed United States that him, that it is due to the public they make the following statement: all "The total liabilities, including forgeries, aggregate approximately asthree million, and there are valid sets either in the hands of the firm, or a as collateral, of about one and mils half up million. This total of three t includes about one million of asliabilities in the bond sets lion Cleveland and departments, Boston taken which into and have not heretofore been deaccount, as the bonds in the bond partments are good and valid bonds than largely hypothecated, and more against n ample to pay obligations f them." , "Mr. Dennison was in Boston last £aturday and had shipped on, to be y over to the receiver, something d of good t, all the property in the over turned was $50,000 securities, possession which h o of the firm in Boston. In one particular the above state ment differs from an estimate of as- by and liabilities furnished Newcomb At the time he put n le Chairman noon. sets Monday the after- gross forgn r liabilities, including $1,000,000 of good ed bonds at $1,900,000, and the 5 assets at approximately $500,000, leavd ing a deficit of $1,400,000. If, as was dee possible, another $100,000 forgery be 1 veloped, the gross liabilities would aso $2,000,000, or about four times the sets, said Newcomb. y Tuesday's statement adds $1,000,000 and e the previous estimate of assets r to the same amount to the Habilities. 11 The explanation given by Newcomb r for this addition is that it covers good o bonds on which loans have been negoThe bonds will suffice to cover but are not on debts of the firm, except tiated. general the loans available careful the for 3. equities which, with ought to be over amounts of the loans. above small handling the left, These and will go into the general asn but they cannot amount equities sets to much. much e It was with the idea of saving as h possible in these and similar affairs equitd as ies by closing up the firm's y slowly, that the bankers' committee was asked to act. re With liabilities of $2,000,000, includthe notes given by Prior to holding of his forgeries, and apparent the available ers assets of $500,000 for general creditors, it is apparent that k, y, the latter will get about 25 cents on h I- the dollar, if no further additions are made to the debts by the discovery of e more forgeries, or other transactions unknown up to this time. An involuntary petition in bank- court was filed in the federal of Tuesday ruptcy against C. E. Dealson. to Denison, Prior & Company The plata at it tiffs are the Cleveland Building com93 g pany, company. and the Western Union the United States, Telephone Tel-
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LIABILITIES ENORMOUS. Estimate Places Indebtedness of Denison, Prior & Co., at About $1,900,000. Cleveland. O., Jan. 16.-According to a statement made Monday night by 11. R. Newcomb. of the bankers' committee investigating the affairs of Denison, Prior & Co., which is in the hands of Receiver Thomas H. Busi:nell, the developments of the day show that the gross liabilities of the firm will be $900,000, not including the $1,000.000 in supposedly forged securities. The assets of the firm. Mr. Newcomb believes, will be about $500,000. Mr. Newcomb believes that few of the forged bonds were gotten into banks outside the city of Cleveland and the state of Ohio, and maintains that the forgeries were used as collateral mostly in this city. That would make the extent of the involving of outside financial institutions small, Mr. Newcomb said. The amount of the bond forgeries were increased Monday by $300,000, and now total $1,000,000. The following are the names and amounts of the alleged forged bonds discovered to date: Canton, O., water works, 1's, $100,000; Canton, O., water works 4s, $100,000; Canton, O., water works 4's, $100,000; South Sharon, Pa., sewer 41/2's, $100,000; South Sharon, Pa., sewer 41/2's, $100,000; Alpena, Micb., water and light 5's, $250,000; Alpena, Mich., water and light 5's, $250,000. The city of Canton has stopped payment of its bond coupons. Cleveland, O., Jan. 15.-The brokerage concern of Parsons, Snyder & Co. made an assignment Saturday. The cause of the assignment is declared to be the Denison, Prior & Co. bond forgeries. The liabilities of the concern will run close to $150,000. it is believed. Denison, Prior & Co. owed Parsons, Snyder & Co. $73,000. This is the real cause of the failure.
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AGGREGATE THREE MILLIONS to LIABILITIES OF DENISON, PRIOR co. OF CLEVELAND CON. TINUE TO GROW. Cleveland, Jan. 7.-According to an official statement issued by the bankers' committee investigating the affairs of Denison, Prior & Co., the bankers and brokers who failed several days ago, the liabilities of the firm, including the forged bonds put out by L. W. Prior, will aggregate $3,000,000. The statement, as given out by the bankers' committee, is as follows: "The total liabilities, including all forgeries, aggregate approximately $3,000,000 and there are valid assets either in the hands of the from or up as collateral or about $1,500,000. This total of $3,000,000 includes about $1, 000,000 of assets and liabilities in the Boston and Cleveland bond departments which have not heretofore been taken into account, as the bonds in the bond departments are good and valid bonds, largely hypothecated and more than ample to pay obligations against them. "Mr. Denison was in Boston last Sunday and had shipped on to be turned over to the receiver something over $50,000 of good securities, which was all the property in the possession of the firm in Boston."
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MAY GET Twenty-five Cents on the Dollar But it May be Nearer Eight Cents in the Prior Failure. Cleveland, O., May 7.-Local creditors of Denison, Prior & Co., bankers and brokers, may get 25 cents on the dollar. They are more likely to get only eight cents. This was disclosed in the schedule of assets and liabilities filed in the United States court today by Receiver Bushnell, "This amount cannot be estimated," said Bushnell, "it depends on how much of the claims the eastern courts hold to be preferred." The reports show that the total liabilities of the firm are $2,395,836, with paper assets of $2,748,320. However, of this about $2,000,000 are worth nothing. The real assets of the firm are about $600,000. Bushnell's schedule is another step in winding up the affairs of Leland W. Prior, who committed suicide when his more than a million dollar bond forgery was discovered.