Show I RID RID- WALL STREET RI OF UNDESIRABLE 1 New York Stock Exchange Takes lakes Decisive Action on Failures TO PROBE TRANSACTIONS TRANSACTION Committee Meets and on Latest Frenzied Finance Is Is- Coming New York Aug 26 6 Decisive ac action action acton ac- ac tion ton was taken by the New York exchange today tolay to rid Wall Vali Yal street c e et broJ brokers cl who Will speculate be beyond ona their ability to make good and to proven further failures like Iko that of ot A. A 0 Brown company A committee e o olive of live five lve was appointed by President n. n II 11 1 Thomas to investigate last Saturday Saturdays sensational transactions and it was re reported reported Ie ported that a a standing 0 would bo be named with wih authority to in inv in- in v at fn any time an and at nt Intervals vals any an firm suspected of doing an Illegitimate business Criminal action ac uc- tion ton a against tho the partners of or Brown company was spoken of or On the Iho committee appointed to toda ay are arc Ernest Grosbeck chairman Albert Al Al- Albert Albert Al- Al bert E. E Goodhart H H. K K Pomeroy CV C C. W. W Maury lur and n. n n P P. Doremus Doremus These Thede men no are all al well wel known as con conservative conserva conserva- trva- trva tive tivo bankers er and their report wilt will bc bo received cd with wih c complete confidence This TiLls committee met in tho tho afternoon and arranged to mal snake make e a a quick hives hives- In cs It I Is expected that a a report will wJ bo b made mado this week weel that will wI clear cler up the entire entro mystery of tho the Brown fan fail failure Uc tire Process s of Elimination By D a process of oC elimination it I was wis shown today that tho the trading which I wrecked tho the firm was W undoubtedly done by Its Is own members They had hadI sold stocks belonging to their customers cu custo custo- tomel's to- to I mers s and held in trust for th them m In Inthis Inthis Inthis this a way the fact of or the firms firm's great short interest cst was wa covered up It I is I said add to have o ha amounted to about shares before Saturday On that lay Jay a large Jarge part pf pt It was wa cr co covered I. I I jut but ut owing to th tho failure allure of or tho the firm firmo to o make mak good go transactions with wIh inns a n new short interest was cre- cre ted for the firms firm's account through j he the enort of other oter brokers broer to cloo ca I out ut these theo contracts This his left leC the I hort short Interest scattered among about thirds vo of ot the Iho brokerage houses in rail street So widespread was this that Inter- Inter et st t w wo brought blought to Insiders who per per- J i r TI Vl nt up t n o calculated the thc the I or los by rown Brown t. t company ltd Lid today that th they did not expect l tho 10 to firm would be able to lo pay more I ian lian 10 cents nt on 01 tho the dollar dolar In settle settle- tents Both h hh of the h firm member member- m hIt hIt- Ort i h will Ill V r. r o l unu I tiiu 11 iii this his hi will bo be placed I e to the tho ti credit r ll of 1 t the he brokerage houses Cn Customers Appear I Customers of or tho the firm appeared i I.- I. ay and attempted to transfer their ther accounts offering to pay in full fun for their thel stocks but they thoy were welo not able abc to do O so so as ns the stocks had ha been soil soH soi I. I 1 the he sale ale of or stocks held In trust i is 15 expected to result resul In criminal action against the firm members member Tho Thic The I charges will U be bc similar to those on n n which Thomas A. A McIntyre was waa ar ar- ar rested the hc report that the firm had I ar-I not nt paid tho the state taxes tae on Us its Is transactions Lions tons was denied toda today As the stocks were distributed among numerous firms Brown Drown company dl did not ant I themselves affix stamps This was done one by tho ho brokers brol handling han the or or- der der The price of the stamps W. W was included In the commission slon bill bil I president an and a Tho The trust hust company 0 cerin certain cotton coton plunger cr whoso names elO i-ero i connected with wih tho the Brown fail failure ful- ful all all- tire ure ure appeared to have o ha been customers of ot the firm for tor small email smal amounts only Tho ilie plunger In question queston Is said to have ha ha had no contracts with the tho firm at al all One Ono rumor in In tho the street today was 1 that this plunger owed Brown Co This was was denied by his his his' broker Deed Del of A Albert Albert O. O Brown Drown E E. F. F Buchanan L. L G Young S. S C. C Brown Drown G. G G L. L L Stout and W W. R. R Whitman hUman composing the firm of A A. O. O Brown Co Co today filed med a n deed of or assignment in tho the county clerks clerk's office orce to t John Joltn V. W. Rhoades Suit was wa begun beun in Cleveland to today a against A A. 0 O. O Brown Co by George I W. W v. v Benedict who claims that the tho firm for or the I s him deo deposited led I purchase of shares lares of Union I Pa Ia o- o James 1 P. P Grace Grac also sued for r I deposited us as margin Customers of or Brown Co charged today that the tho failure was directly duo to the Bank of ot Commerce a Standard Oil Oi institution and an tho the Han Han- over or National bank bani which is controlled controlled con con- trolled by Morgan Interests When the tho firm found on Monday that they were obliged to deliver delver over half a million shares ghan's of or stock which hal they had sold and could no not possibly deliver before 15 o'clock that afternoon afternoon after after- ofer- ofer I noon much more moie than shares shares the they sent word to brokers holding I orders for stock sold fOW to them to bu buy I the shares under tinder the tho rule rulo of or tho ex- ex ex I This permitted houses to toI chan change c I whom the firm could not deliver elver stocks tocks sold to buy the shares In the Iho I open market and call cal on Brown Co I for fOl tho difference between the selling selling sell soH- I on Saturday and und the market ing price I price on Monday Monda or of Cn Cash li To pay these differences and handle trad trades and acquire stocks required more morr t money moncy than Brown Co had hadIn hadIn hadin in the thc banks Mr lr Brown and md his partner Mr Buchanan it I 18 Is alleged 11 with went to the Bank Dank of or Commerce wih asked securities of great value aluc and offering of of- that th Mr checks be O against t It The r fering management nt securities of or the tho bank refused It to extend the desired accommodation i Then tho the Brown people sy thoI tho I Hanover National was appealed to to unable loI to lo I with a like re result ulL Being I short notice the firm was borrow on forced to assign I |