SENSATIONAL FAILURE

Evening Post, Volume CXII, Issue 58, 6 September 1926, Page 9

SENSATIONAL FAILURE

AMERICAN BOND COMPANY

SM_y___ INVESTOR HARD BIT.

(United Press Association.—Copyright.) NEW YORK, 3rd Sept.

The most sensational failure among American financial institutions in the last decade occurred to-day, with the announcement that the affairs of the G." L. Miller Company, dealers in real estate bonds, had been placed in the hands of a receiver, technically, the company's liabilities amount to 6,915,----000 dollars, and this assets are estimated to be in the vicinity of : 9,000,000 dollars. But behind these ledger figures lurks the possibility of a tragedjr 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.

Tho firm was recognised as the second largest fire 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 Labour organisations, which in the last few years have gone into banking, but the plans never materialised.