Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-05-06
THREE BIG FAILURES
Announced, Monday, on the New York
Stock Exchange.

New York. May 5.-The developments
o. the latter half of last week. in Wall
street, in connection with stocks of the
dominion Securities Co. the Rutland
Railroad co. and the Hackensack
Meadow Co, resulted. Monday. in the
announcement in rapid succession o.
TIE suspension Of the stock brokerage
houses. The first firm to declare in
ability to meet obligations were Of
Il nbach 4 Moore. and Henry brothers,
and Lockwood, Hurd < Co, followed
rapidly
otterbach & Moore We're known prin-
cipally as traders in what was known
IS Webb Meyer securities. and the
announcement was made. Saturday
ttat they had experienced some diff
Guilty in securing loans to enable then
to carry stocks, for the interests which
| Trey represented.
Saturday afternoon, however. 2
statement was made on behalf of the
firm. to the effect that temporary ar
engagements had been made, ana that
it was hoped funds might be obtained
Monday, to pay their obligations and
continue business. Mondays suspen-
sion shows, however, that these hopes
We're not realized.
The offices OF Offenbach & Moore
We're not opened for business at all.
Monday hIr. Gordon of Henry
Brothers. whose suspension followed
that of Offenbach & Moore, was di-
rector of the Dominion Securities Co
The amount of their joint liabilities il.
variousy estimated at from $2,G0d,000 TO
s., 600 600.
Two of the insolvent firms announced
that they hoped to resume No yer!
definite statement was forthcoming from
the parties most interested
The day closed with the usual rumors
of more failures and criminal prosecution
The soyency of several financial institu-
tons of standing was brought into ques-
ton, but for such rumors there appeared
to be absolutely no foundation.
The failures were directly due to last
weeks serious decline in a number of in
dustrial stocks. beginning with the slump
in International Power which was fol
lowed by the collapse on Friday of the
So-called Webb-Meyer securities.
Following the announcement of the
failures, many lots of stock and few
blocks of bonds We're bought and sold
under the rule on the exchange for
account of the insolvent concerns.
All told, 3525 shares of Rutland pre-
ferred were traded in during the day al
from Sc to sc. closing al %, a net loss for
the day of five points. There were NJ
sales of St. Lawrence &, Adirondack. TIL
rally in Rutland from the low point fol-
lowed announcement that Vanderbilt in
terests bad agreed to take up block of
shose shares for account of some of the
embarrassed spectators.
There was practically no trading in the
Webb Meyer stocks Offenbach a Moore
Office was the storm center of the dis
trict early in the day. 1t was rumorei
that the firm had sought assistance from
its bank and later from DIR. Webb AS
soon as the firm suspended the offices
were cleared and later in the day some
of the furniture was being removed
All through the afternoon there were
conferences between Mr.. Meyer and his
associates. Among those at the confer
ence was Creighton Webb, a brother OF
Dr. Webb. Mr.. Webb declined absolutely
to discuss the situation.
A leading official of the Webb Compa-
MES and the Hackensack Meadows. of
which Mr.. Meyer is the leading spirit and
with which DIR. Webb is said to have ab-
solutely no connection, stated that the
condition of these concerns was fairly
good. although he admitted that they had
probably received a black eye" for a
time al least.
The same official stated that things
were shaping for a favorable solution of
the situation ana intimated that any mon
eys needed for legitimate operations by
these companies would be forthcoming.
a deputy sheriff called at DIR. Webb :,
office in the afternoon, accompanied by
T. M. Brown, lawyer. The deputy shcr-
if said he wanted to see DR.. Webb on
personal business. He declined to say
whether or not he had an order of arrest
for anyone.
Mr.. Meyer left DIR. Webb's Office early
in the afternoon. Mr. Meyer stated that
he had been unable to reach any agree.
ment with DIR. Webb
MIR. Meyer smiled when asked whether
an order for his arrest had been issued
but would say nothing.
Henry Bros. d Co., organized Feb. !,
1900. Speaking for the firm. H. g. Weir.
the manager, said: we hope to pay l,O
cents on the dOlla. We We're caught
over night with a block of stock which
1--WE could not deliver
Wall streets conservative men were al
most unanimous in the Qpinion that the
DAYS happenings had done much to car-
ify the financial atmosphere.