Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1902-05-06
BROKERS CAUGHT SHORT
Inability to Obtain Loans Results In
Several Suspensions of Wall
Street Houses
Developments In Connection With the
Webb-Meyer Stocks Cause Of
All Failures.
Securities Involved Offered at Less
Than Half Fridays Quotations,
With No Takers.

New York, May Sine develop
ments of the latter half of last week in
Wall street in connection with the
stocks of the Dominion Securities
company, the Rutland Railroad COM
pany and the Hackensack Meadows
company, resulted in the announce
ment in rapid succession of the sus-
pension of Stock Exchange brokerage
houses. The first firm to declare in
ability to meet obligations was Often
bach & Moore. Henry Bros. and Lock
wood, Hurd & Co. followed rapidly.
Offenbach & Moore we're known prin-
cipally as traders in what were known
as .Webb-Meyer" securities and the
announcement was made Saturday
that they had experienced some diff
fculty in securing loans to enable
them to carry stocks for the interests
which they represented. On Saturday
afternoon, however, a statement was
made in behalf of the firm to the effect
that temporary arrangements had
been made and that it was hoped funds
might be obtained to pay off obliga-
tions and continue business. The sus-
pension shows however, that these
hopes were not realized. Mr.. Gordon,
of Henry Bros, whose suspension fol-
lowed that of Qffenbach & Moore, was
a director of the Dominion Securities
company. s& q,
The stock market opened weak with
the knowledge that a number of fail
ures were imminent. Support was ac-
corded the market and there were
some rallies, but when sales under the
rule for suspended houses were made
the market gave way again. The high
priced stocks which had been under
recent manipulation were the severest
sufferers. Rutland preferred dropped
IA points, Westinghouse Electric Is,
| New York, New Haven and Hartford
5, North American SIS, Northwestern
and Tennessee Coal 3. The Coalers
were affected in addition by fears of a
miners strike. Delaware and Hudson
dropped Az, Reading 8, and others
smaller amounts. Losses of 1 to 3
were quite general throughout the list.
Before the first hour had elapsed sup
| porting orders were effective again
and there were some substantial raj
lies.
| Webb-Meyer Securities Drop.
| On the curb where non-stock ex-
change securities are traded in there
was an excited group of traders trying
to make sales in Webb-Meyer stocks.
Dominion Securities, which sold last
Friday at 11S1h, was offered at 20, but
the best bid was 30. Later it was Of
fered at so and the bid declined to 10.
| Hackensack Meadows was offered at
40 with no bid. On Friday it sold at
79.
DR.. w. Seward Webb, president of
the Rutland Railroad company, arriv.
ed here during the day from Shelburne
Falls, VT. It was said at his Office that
a statement on his behalf would be
issued some time during the day.
Henry Bros. made an announcement
after their suspension to the effect
| that their embarrassment would be
but temporary; that they were sol.
4 vent and that they had suspended for
the time being in order to protect their
4 customers. ,s
No statement of liabilities or assets
accompanied the suspension notices
/ and 1t was said such statements might
not be obtainable for several days.
/ Mr.. Prall of the Stock Exchange
| firm of Webb &, Prall made this state
/ ment on the authority, he said, of DR.
/ Webb:
"All the, Rutland railroads preferred
/ stock sold by DR.. Webb last June, Ger
i tifcates of which are still in his name
i and amount to 12,50O shares, will be
4 paid for in cash at 108 by j. WMDavis
& Co."
]. Edward Simmons, president of tn.
4 Fourth National. bank, made this com
4 ment:
81 consider this a good thing. It will
result in conservatism instead of the
I continuance of wild speculation.
think the storm has blown over $ ;.
Announcement is made that DR.
i Webb has resigned from the Interna
4 tional Power directory. President
Hoadley said that the resignation viii
4 doubtless be accepted.
] COURT OF INQUIRY.