New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-22
FAILURE OF J. l.. BROWNELL & CO.


THE CAUSE A THEFT OF SECURITIES BY A Gus
TOMER-OTHER SUSPENDED FIRMS.
The failure of J. i. Browncll Il Co., No. 50
broadway. which was announced at the Stock Ex-
change Yesterday morning, not important, be-
cause the firm has done Only small business
recently According to the statement of the mead
of the firm the failure was caused by the thet OF
securities by George II. Slower, a customer, who
had promised to secure loan on them. Mr.. Slower
was arrested yesterday on warrant granted by
JUDGE Donohue and was put under $4,000 bonds.
Mr. Brownelrs sureties on the indemnity bond Of
D., 900 were s. Y. White and III. B. Clahin. Tho
firm of j. l.. BrOwHcll d Co. consists Of Ar.
Browncu and H. II. Walker On February
William Butler Duncan withdrew his special capital
and the rem&ining partners continued the business.
Mr. Browncll said of the failure:
Mr. stoyer had been a customer Of ours for alOata
year and half We we're carrying ior Ln some nter,
other railroad bonds, ana IN tue Ia5t week ue "a!
rgad us not sacrifice his property. because he could
borrow money GA the bonds Tor US oi M0llay ne toa
W9vor Wickham and he took the bonds from the occs
with promise to bring back the check IN few minutes.
some difficulty with the loan Afterwarl dc maniej
hen The SUSPENSION of the firm followed To-day.
orr total liabilities. II Mr. stoyer should return the
bonds would not exceed $4,000 or $4,000 II we had
sold the bonds &C price which he Lad liked on them
we should probably owe him about $1,000. To pay for
S92 600 But in addition TO thcm he carried away
$4,000 Mobile and Ohio ecOnd debenturcs belonging 10
another customer. / call the transaction downright
robbery.
Mr. Browncll was formerly school teacher in
Brooklyn. lie engaged in the brokerage business
in Wall Street in 1868. lie failed in the panic Of
1873 aud for two OF three years was not an active
member of the Stock Exchange. He was largely
interested at that time in real estate at Tarryt0vn
and Nyack. Since he recovered from his former
faiure he bas done a small and conservative bus-
ness -, ..
the suspended stock Exchange firms yesterday.
DonnclI Lawson n Simpson are preparing circulars
to Lc issued To creditors offering settlement based
ON notes of the firm at q per cent interest to run
twelve and twenty four months. IL the firm can
redeem its notes earlier il Will do Assent 10 tho
nroposition is not to be binding unless given by
nine tenths of the creditors. At the Office Of A. W.
Dmock Il Co. il was stated that the suit of Alfred
Sullv contesting the validity of the firms assign
ment TO Charles Putnam Smith, was simply law
matter which would have TO be settled in the
cOurts With regard to Mr.. Sulys securities
alleged TO have been rehypothecatcd. the iirm
claimed TO have had authority from Mr. Suliy 10
use them for his benefit as its judgment dictated:
This was DONE and Mr.. SuIly had no claim beyond
that of any other creditor.
The Marine National Bank opened its doors YES
terday 10 receive the pass books of dcpostors for
tbe nHrpose of comparing them with tho books IN
the making of the statement OF the banks condt-