Failure of the E. S. Greeley Company

THE E. S. GREELEY CO. FAILURE.

James Woodville Sands, Its Secretary,

Falsified the Books of the Firm.

Gen. Greeley admitted yesterday that the failure of his firm, the E. S. Greeley Company of 5 and 7 Dey Street, was brought about by the dishonesty of the Secretary, James Woodville Sands. The firm is now in liquidation, and Gen. Greeley is the receiver. The failure, in October last, for $160,000 was a surprise to all the connections of the firm. The company dealt in railway supplies and had been in prosperous operation forty years.

Mr. Sands was a close friend of Gen. Greeley, the President of the company, and was appointed joint receiver with him of the assets of the firm. An importunate Pittsburgh creditor demanded that an expert examine the books, and he learned that the accounts had for years been falsified. No publicity was given to the discovery, although Mr. Sands was arrested in civil proceedings brought, and released on $40,000 bail, furnished by his son-in-law, William H. Russell. The money stolen has been refunded.

Gen. Greeley said yesterday no attempt had been made at secrecy, as no attempt had been made to give the unpleasant facts publicity. Civil, instead of criminal, proceedings had been instituted against Mr. Sands, because it was deemed best in the interests of the creditors to recover the missing assets if possible.