Show STOCK BROKERS GO SPOUT Knight Donnelly and Company of Chicago Ba BANKS HOLD COLLATERAL PROCEEDiNGS s BELIEVED TO BE FRIENDLY f 1 June Donnelly tj J Co CD one or of the most widely known grain and stock brokerage firms in the west and or of reputed finan financial cial standing throughout the business world became involved in involuntary bankruptcy proceedings in the United States di district court late thi afternoon Three petitioning creditors with claims amounting to filed the petition before Judge Landis and Edward C Potter was appointed receiver in bonds of The b bankruptcy proceedings i are believed to be directly because of f I th the presence In l court curt of Attorney Silas H tw representing R H Donnel Donnelly I ly one of the members of the firm The matter w was cried carried through the court an and after the proceedings were hut little information coul could b be obtained from thor those interested in the cs case Tr Trades des Evenly Balanced According to t th petItion for fo the re re thre there i is sigo 0 i outstanding in various kinds of grain stock and bond transactIons Attorney Whine Whitney for forthe forthe the brokerage declared tonight that the failure would cuse cause little e ox on the Chicago bord board of trade or the New N w York stock exchange to tomorrow morrow morning ring as the trades are so evenly blanc balanced that the transactions on the long sie side of the market wi to a get great extent offset the trade trades on the short sie side For ever every transaction made by the firm said Mr Ir Whitney oth the Chigo Chicago banks bd hold collateral an and i if th the banks sel sell out at the present market price mone wi will b be gained instead of lost lost of ofa The petition for the appointment a ft ree receiver fr sets forth that if an attempt is not immediately made to realIze on the t woth worth of oC transactions the del deal wi will necessarily have to b be close closed out at a great et sacrifice No Reason Assigned R H senior member of the firm fir declared delare tonight that n no one I would be harmed financially but he I refused to give any reason for the fai fail ure of the ge company He sai said I As near as I can estimate tonight our DUr liabilitIes are about M and Ur aset assets abut about This estimate s 5 made ae by taking a as a bis basis the cbs in n price of stocks and gain grain toda today As Asson son soon as Receiver Potter cleans UP our the firm fir of Knight Knight Donnely Donnelly Co wi will b be dissolved The fin firm ha had wires Ires to New Nework w York ork St Luis Louis and other leading finan cal ial centEr centers of the country |