Show WILD WHO TRADING Brokerage Firm of ofA A 0 O Brown Co of New York Sus Suspends Suspends Suspends Business OTHER FIRMS MAY BE HURT j 4 STOCK MANIPULATION WAS TOO HEAVY TO HANDLE New York Aug Au 23 The failure of the hit big brokerage firm of ot A 0 O Brown Co Cotor for tor a II sum probably estimated as running well above sent a nervous thrill through the stock market today Coming as ns a II climax to the bewildering trading in last Saturdays market the suspension created an extraordinary degree of ot public Interest but was vas looked upon by high highstock stock exchange Interests as offering an early solution of ot the tangle growing out of ot the most remarkable two hours ses session session sion slon the New York stock exchange has known in many years Others May Become Involved While there was no question in Wan Wall Wallstreet street this afternoon that the situation created by failure could easily be betaken betaken taken care of ot there was distinctly a II feel feeling feelIng feeling ing of ot apprehension lest other firms might unwittingly be drawn into the affair as a result of the extensive orders scattered through commissions houses during Satur Saturdays Saturdays days das spectacular proceedings The transactions of oC 0 O A Brown Co Cp covered nearly 73 i per cent of the trading in the sensational weekend session ot or orthe the stock market markot and It was stated of officially by n a member of ot the firm today that the delivery had been made on only oO of ot the more than shares han handled handled died How many man of the outstanding shares represent the dealings of custom customers 1 ers and how many were carried on the thee firms account It was Impossible to learn learnS S No Dealings With Lawson Late tonight Mr Buchanan gave Sae out the following statement I have been trying all alt this afternoon and this thI evening to get something den from our offices but the details arc are areso FO so voluminous that some time will be re required reQuIred required to arrive at accurate accurate figures I 1 expect to have something tomorrow In regard to our early arl resumption In Inthe the th meanwhile 1 wish you oU to deny pub published published rumors that we have hav been doing business for tor Thomas W Lawson Mr D DG DG DG G Reid or some of the other gentleman whose names named have been mentioned in con connection connection netlon with our affairs I hope to make a full and satisfactory explanation of our ourI I option very vcr soon sOl n No Cause for Apprehension So far as I am able to see sec there is no immediate cause for apprehension of or our temporary embarrassment which is due more to technical than general causes 1 Can you OU not say a definitely what caused thc th suspension Mr Ir Buchanan was asked Not at this time he replied Have you ou heard the report that mem members hers bers of or the firm had been speculating that the house was short of the market and caused the flurry nurr on Saturday In an attempt to up that shortage Yes Yell but It Is false Did some customers dealings then cause Huse the failure I can say nothing further tonight everything I will he ho cleared up In time It was stated that the notice served to today toa toay day a ay by bankers that they the would not for forthe forthe forthe the present continue the certification of the firms checks precipitated the crisis The afternoon was filled with rumors as s to various outside sources that may ma have hae been responsible for the course of ot the firm in Saturdays market when the total sales recorded on the floor of the th exchange for the two hours of trading amounted to more than shares as against of a milion during tK th full five rive hours session of ot Monday but most of or these rumors were werl dissipated Announcement of the failure was made on ou the stock exchange at nt 13 p m when the th market was ranging from one to three points higher than the closing yesterday There had been heavy hea buying during the tile morning hours presumably on the part of brokers attempting to fill the uncovered orders of at Saturday and for a time prices priceR were maintained The market closed heavy and uneasy however at a decline Had Extensive Connections A t O 0 Brown Drown Co were members of ot the New York exchange New York cot cotton cotton ton Ion exchange Chicago stock Chicago hoard of at trade and the Cleveland tock stock exchange They had branch houses In Chicago Cleveland Buffalo Erie Pa and Toronto oronto In this ci cit city y they the maintained expensive he branch offices In four tour of ot the fashionable hotels and at two uptown ad addresses addresses addresses dresses Then Ther principal office was lat mt at G 0 Broad street a few doors from exchange building Within the last few months the firm had spent in re refurnishing refurnishing refurnishing furnishing its Broad Brond street home The membership of the firm included Albert 0 O Brown Lewis Ginter Young Youn YounG G Lee ve Stout Edward Ellward F V Buchanan Sam Samuel Samuel Samuel uel C Brown and W Rhea Whitman Private wires wen wert maintained to all nil principal cities The extensive trading tra of ot the firm it itis ItIs ItIs V is believed was confined largely to New NewYork NewYork York despite the fact that the house has made a specialty of ot western business Although organized In the latter part of or 1802 the firm had hall come to take a n prominent prominent prominent nent part in trading on the stock exchange floor John W V Rhoades cashier of the firm was named as assignee with D W Noel as counsel j 3 Result of Saturdays Trading When hen the failure was announced a memo mem her of the firm said that Its affairs were in a badly condition as the th re result suit sult of Saturdays trading and that it wa was thought best to make an assignment at rot t tonce once It is understood that brokerage e firms who were awaiting the delivery deliver of stock from A O 0 Brown Co became impatient along toward noon today toJa and ami an 11 sent rent word that they the would allow but a afew afew afew few more hours of ot grace race All attempts to secure further delay de were futile and the suspension followed It was also said that the banks s that carried the accounts of ot the house declined today toda because of the unsettled condition of or the affairs of the tile firm further to certify certify any of its checks One of ot the man managers agers of at th t house when questioned as asto asto asto to this dismissed the subject by saying the firm had asked for no ao 0 certifications Less LeIs than an hour before the suspension and anIT when efforts were being made to o 0 stave stae off orf the delivery d lver of or stocks tocks the firm Announced that its busi business business business ness was proceeding in orderly fashion and that any suggestion as to its financial standing was ridiculous Business Was WS Clogged Friends of the members of ot the firm de declare declare clare iare tonight that the collapse was due entirely to the clogging of its regular regul r channels of ot business by the extraordinary Saturday trading A thousand clerks clerics it was explained could not properly enter and transfer the of ot mil mu lion shares handled by b the firm on Sat Saturday Saturday Saturday within the space of time allowed by the exchange rules for making deliveries dell eries erles Albert 0 O Brown the head of the firm was wa before the stock exchange governors Monday afternoon to explain tardiness of delivery deliver and it was announced afterwards that his lifs explanation as to this feature of the trading had been accepted It was further the gov governors governors governors of ot the exchange would appoint a committee of ot five le thoroughly to inquire Into Saturdays transactions as a means of restoring public confidence and would punish any members who had been guilty of a transgression of or the rules The per pei persOnnel of ot this committee had not been announced when hen the th failure of Brown Co became known hut but It was said the tIle events of or the day lay had In no way wa changed the purpose of or the governors Wild Flurry of Trading Saturdays trading will long be ir in Wall Vail street streeL With the opening of or the session of or the tIle exchange there was an almost immediate plunge in the shares of a few fe active favorites and in Ina a lit tie tle while the ordinary units of sale were raised from too SuO and lots to and shares and it seemed for fora a time as though the few brokers par participating participating were playing a game Same with so soman many man pieces of ot paper In all this wild wll l flurry nUrr of ot buying and selling of or shares whose face value amounted to millions of dollars there was little or no change In Inthe Inthe Inthe the price of the securities so freel freely han died Suspicion of manipulation lon and of the matching of orders was Vas aroused and there was more satisfaction than surprise when the governors of the exchange met meton meton meton on Monday ronday to Inaugurate an Inquiry Members of the suspended firm early earl to today today today day declared there was nothing extra extraordinary extraordinary ordinary In their trading on Saturday The fIl fact that the stocks dealt in showed no great change of price they the declared be bewildered bewildered the followers of the market and brought about the widespread comment |