The times., 1901-05-18
An ASSIGNMENT CERTAIN
The Firm of Gurley & johnson
Will Be Unable to Resume.
4 Statement to BE Issued Shortly by
the Suspended Brokerage Concern
--UnofiiciaI Estimates Place Their
Unsecured Liabilities at 100000.

--UnoficiaI Estimates Place Their
Unsecured Liabilities at 100000.
The clerks of the suspended brokerage
firm of Gurley & Johnson were engaged
all day yesterday in winding up the ac-
counts of the firm preparatory to max
ing the assignment which now is consid-
cred inevitable. No statement was made
by the firm yesterday, or by their coun-
sci, WOrthington, Heald & Frailey. 1t
was said by representa- tives of the house
that no announcement of assets and liza
biities is likely to be ready for publfca-
tion until next week. as the business was
very large and complicated one and the
accounting necessary to its adjustment
is intricate and tedious
The best information regarding the con-
dition of the firms affairs obtainable last
night was that the liabilities in excess of
all assets will be about $20O. 600. 1t could
not be learned if the amounts due the
firm from customers, on stocks sold out
below their margins, are included in the
assets or not. This sum of 900 is un-
derstood to be due entirely to local GUS
toners of the firm, and IL is said that
no balances are due to any New York
brokerage houses.
1t is stated unofficially that the firm
had between 10000 and 10000 shares Of
stocks bought for customers prior to the
panic of last week, and that there was
on deposit as margins in New York on
this stock about IS a share. This amount
of margin would have been considered
sufficient in any ordinary market, but
owing to the wildness of the boom before
the smash Mr.. Johnson, the stock ex-
change member of the house, repeatedly
urged his customers to protect them
selves and the firm by either selling out
their stocks or deposi.ing more margins.
This the customers failed to do in the
large majority of cases.
When the break came on Thursday it
was an avalanche in rapidity and destruc-
tiveness, prices breaking ten and twenty
points between quotations, and in some
cases as much as forty to sixty points in
two or three minutes. The correspondents
of Gurley & Johnson in New York, Coop
er, Cramp & Beadleston, made a per-
emptory call for twenty points margin
on all the stock held by them, amounting
to between $4,000 and $4,000. This call
Gurley & Johnson were unable to meet,
and under the rules of the stock exchange
the New York house insisted that the en-
tire amount of stock held or nearly all of
it, be sold out. This was done, and un-
many cases around the lowest of the
panic a sharp recovery occurred before
the close of the day, but this did not help
Gurley & Johnson to any extent.
1t is understood that the portion of
stocks not sold out on Thursday were
held over until this week and that they
were placed with the New York house of
Shaw 6 Co. One statement is that there
were about 10000 shares of this stock
Later this was sold out also, it is said.
when Mr. Johnson found that the losses
of the firm were so serious that there
was no hope of reccuping them.
Expressions of sympathy for the firm
were heard on every side yesterday. A
great number of their friends and GUS
toners called personally at their offices
during the day and shook hands with Mr.. |
Gurley and Mr.. johnson, with the strong
est assurances of their confidence. Let |
hopes for their ability to weather the |
storm We're also received
The house has been most popular one |
since its foundation four years ago, and
both members are among the best known
and liked of Washington business men. /
Its business has been very large, probably |
the most extensive in the city. and at
times Il has been very profitable. 1t is |
understood however that a considerable |
loss was sustained in the Flower panic |
Of two years ago, when conditions were !
somewhat similar to those OF last week.
The belief is entertained that the failure |
OF Gurley & Johnson will not adversely |
affect general local business conditions. |
1t is understood that no large amount |
of securities dealt in on the local stock |
market will have to be sold out either for |
customers or for the firm itself.
NEW YORK, May Announcement |
of the failure of Gurley & Johnson was
made from the stock exchange rostrum
of Washington today. The firm had no |
New York Office. Since last week its
here has been the stock
exchange firm OF John NJ. Shaw Co. |
Prior to that it's correspondents were, sue
cessiveIy, Cooper. Cramp Beadleston
and Van Emburgh & Atterbury.
At the office of John NJ Shaw q Co. to-
day it was said Mr.. Shaw was in Wash
ington. presumably on business connected |
with the failure. 1t was stated, however,
that Shaw & co. were not involved, as
the Washington firm had only transacted
a small business through them.
In the panic some of Gurley & John
sons biggest customers were reported TO
have WEIGHED" on losses. Among the
firms customers were a good many promi-
nent politicians
HEAVY SENTENCE FOR BASS.