Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-05-17
The Firm of Gurley & johnson Sus-
ponds Business.
AWAITING ADJUSTMENT OF ACCOUNTS
Disaster Due to Late Furry in
the Stock Markets.
T STIMA LIABILITIES


doors for business this morning. There
was no announcement posted on the door,
but Mr. w. B. Gurley. the senior member
of the firm. who was found by a Star re-
porter near the entrance to the office talk
ing to a group of customers, said that the
firm had ceased operations pending the
preparation of a statement of the business.
Great interest manifested on the part
of the public for the firm had been doing
the most extensive stock brokerage bust
ness in the city. While. OF course, those
who familiar with the unprecedented
conditions resulting in the wholly unex-
pecttd collapse of the New York stock
market last week realized that the situa-
ton was a trying one, there was conf
dence that this firm would be able to
weather the storm.
AT the close of business yesterday after
noon the conclusion reached by Mr..
Richard A Johnson. who has charge of the
New York branch of the business of the
firm. that the wiSest course was TO close up
until a settlement could be reached. This
decision became known to some extent last
night, and this morning the customers of
the house came to the office with no expec
tation of finding it open. They stopped at
the entrance and others Joined them, so
that group of men about the door
of E~i5 F street the greater part of the
morning and attracted a good deal of at
tention in that busy thOroughfare. 1t was
largely a sympathetic crowd although there
were some who had accounts with the firm
which placed them on the credit side
In addition to the personal popularity of
the members of the firm. which is
tensiVe as their acquaintance. it was real
lied that the disaster was due to the great
Wall street panic. which came with such
aCuteneSS as to place in peril to a greater
or less extent all business of this character
While, of course. no definite statement
can he made of the extent of the liabilities
OF this firm, it was matter of common re-
le of
quite number of the accounts carried by
it largely due to the generous
disposition of Mr. Johnson. which led him.
ii is believed. to carry customers beyond
the point justified by a conservative bust
ness policy.
II is. however the hope that the disaster
which has come to this house will not
prove to be of a permanent character and
that when a schedule is made ont showing
the exact condition of the accounts it will
b. possible for the firm again to resume
business
The Liabilities.
II IS learned on good authority and in
the absence Of a positive statement from
the house that the total liabilities will not
exceed S2,9vo This amount consists of
sums due traders on credit balances,
against which there is a large line of
debit balances from traders who have not
made good their losses. A certain pro-
portion Of these assets is cOllectible, while
the balance will doubt prove to be
worthless.
II is impossible at this writing to state
what proportions the two classes will bear
to each other, but it is believed thai L
balance will show quite a large amount
for which the firm will be liable.
1t may be stated as indicating favor
able condition that the loans of the firm
are amply secured good collateral and
that they will not be disturbing element
in the present crisis The assertion is also
made good authority that while some
individual customers OF the firm may be
placed In financial straits in order to make
good their losses, yet there Is no gen.
eral bad effect the local financial mar
ket. In other words, it is believed the
losses will fall on the firm and on the Gus
toners. and not have any further ramifi-
cations
In view of the trying experience of
Thursday of last week. it is looked upon
In local financial circles fortunate that
the effects have not been more heavily felt
here. The fluctuations which occurred In
Wall street on that day ranged all the way
from 10 To 80 points, and resulted in de-
mOralzation and consequent heavy losses.
Brokers who We're carrying stocks for GUS
toners on a margin of ten points and saw
the beginning of the landslide called Tor
additional margins; In the event these
were not forthcoming an order was sent
to sell out the stock, btt in some cases
before the order could be received or ex-
ecuted further decline had taken place.
so that when the sale of the stock was
actually made It was from eight to ten
points-perhaps more, perhaps less-below
the limit of the margin.
Falls First on Customer.
This loss on a hundred shares. amounting
to eight hundred thousand dollars, fell
first on the customer. But in the event the
resources Of the latter were exhausted
when the money he had put up margin
was gone then 1t came upon the broker.
1t will be readily understood that with
number of such customers the list the
liabilities If "A brok firm would likely
be large
IL was this situation which confronted the
firm of Gurley & Johnson. Its corre-
spondents in New York We're Cooper. Cramp
& Beadleston. and in addition, Mr. Johnson
is member of the New York stock Cx-
change.
At one time. not long ago, the firm vas
carrying many as 1900 shares of stock.
and it is not surprising that its credit
balances in New York up to the neigh
bOrhood of half million dollars. The
volume of business had become large
that arrangements were being made to Sc
cure additional office room. and the east
section OF the first floor of the Adams build
ing, corresponding with that occupied by
the firm. had been secured and being
fitted up for its Since the year 1898.
the date of the formation Of the firm the
business done has been a progressive
in extent and has been characterized by the
generous policy which such disposition as
Mr.. Johnson has would be likely TO favor
The time and attention of Mr. Gurley were
devoted entirely to local securities that
the New York stock market department
in charge of Mr. Johnson. A branch
office was maintained at the Arlington Ho-
tel during the sessions of Congress and the
house handled a good deal of business and
ever since the November elections has
made a great deal OF money. Mr.. Johnson
Is young man. not quite thirty, but he in
herited from his father. the late +. kurtz
johnson, his business ability as we'll as his
generous disposition, and he has large
circle of friends, who sympathiZe with him
In his misfortune. The senior partner of
the firm. Mr.. w. Il. Gurley is one of the
respectable business men of the city and is
widely and favurably known.
DEPARTMENT OFFICIALS GRATIFIED