SENSATIONAL AMERCAN BUSINESS CRASH

Manawatu Times, Volume XLIX, Issue 3445, 6 September 1926, Page 7

SENSATIONAL AMERCAN BUSINESS CRASH

FIFTY MILLION DOLLARS INVOLVED. [By Electric Cable —Copyright.] (Aust. and N.Z. Cable Association.] (Received Sunday, 7 p.m.) NEW YORK, Sept. 3. The most sensational failure among American financial instituions in the last decade, occurred to-day. with the announcement that the affairs of th 9 G. L. Miller Company, dealers in real estate bonds had been placed in the hands of a receiver. Technically the liabilities amount to 6,915,000 dollars, and the assets arc estimated in the vicinity of 9,000,000 dollars, but behind theso ledger figures, lurks the possibility of tragedy for more than 25,000 small investors, who put their life savings into the company’s securities, the total of which now outstanding is 50,000,000 dollars. The firm was recognised as the second largest first mortgage bond house in America, and its business chiefly consisted of lending large sums of money to builders of flats and office structures on first mortgage, and reselling these indebtednesses to the public in the form of small bonds. It had underwritten property all over the country, and particularly of late in Florida during the boom there. An attempt was made recently to have the organisation affiliate with the Labour organisations, which in the last few years have gone into Banking, but the plans never materialised.