New-York tribune., 1902-05-06
\ SHOCK TO THE STREET.
FINANCIERS. HOWEVER. THINK IT WILL
CLEAR THE FINANCIAL AT
MOSpHERE.

Although the suspension of Ofenbach &
Moore, Lockwood, Hurd & Co.. and Henry
Brothers & Co had been generally anticipated.
the actual announcement that they had gone
under gave the Street a shock. under which
prices declined sharply. Sober second thought,
however, brought realization of the fact that
the failures were a consequence of an imitation
which had for months been recognized as
menace 10 the speculative situation and the
market soon rallied. Wall Streets conservative
men were almost unanimous in the opinion that
the days happenings had done much to clarity
the financial atmosphere. J. Edward Simmons
president Of the Fourth National Bank, said:
4 consider this good thing. It will change
the present reckless and wild speculation and
bring more conservatism to the Street / think
the storm has blown over"
The presidents of other leading banks and
trust companies made similar comment.
MUCH MONEY LENT.
From S15,Ooo.Oo0 to S25,OOO.OO0 was lent by
the downtown banks and trust companies in
the course of the day. The National City Bank
put out large sums its counter at from
6 TO s per cent. Other heavy lenders included
the First National and Western National banks
and the Union and Metropolitan Trust COM
had called meeting TO check the rising ten
dency of the money market was characterized as
a report tNdI the Clearing House Association
had called a meeting 10 check the rising tend
ency Of the money market was characterized as
absurd by Manager Sherer. There was no rea-
son for such action. he said. Besides. in his
opinion, such q course would offer encourage
ment to number Of irresponsible interests.
One Of the reassuring occurrences of the day
was the announcement by Webb & PralI the
senior member Of which firm F. Egerton Webb
is a brother Of DR.. W. Seward Webb. that J. w
Davis & Co, of No 100 Broadway. would buy
in at los. in cash, all the Rutland preferred
stock sold by DR.. Webb last June, amounting
TO 1880 shares. the certificates for which are
still in his name.
At the office Of ]. w. Davis & Co, in the after
noon. it said that the stock was being
bought in fast II was presented. No
further information was given.
This stock was sold by DIR. Webb 10 A. l.
Meyer at JOS, and is deposited with banks as
collateral for loans. probably about % TO 100
having been obtained IT. The purchase Of
the block of stock by ]. w. Davis & Co. at 1OS
will enable Mr.. Meyer to pay off these loans and
give him probably about 100000 cash for use
in the present emergency. It was reported yes
terday that the decision to take up this stock
the chief result of the morning conference
at DR.. Webb's Office.
HENRY BROTHERS. EXPLANATION.
The only one Of the three houses offerinf spe-
cific explanation of the causes of their embar-
rassment Henry Bros. & Co. H. ]. Weir, q
representative of that house said that Thurs
day Henry Bros. & Co. had received an order
10 buy about four thousand shares Of curb
stocks for Offe lbach & Moore. and had executed
TIE order the sum involved being about
10000. When. however, they tried to deliver
the stock to Ofenback & Moore. the latter firm
could not take it up. and nothing was left for
Henry Bros. e. Co. to do but suspend, as
practically their entire capital (S4oo000 in alb
was tied up in the four thousand shares of stock
thus left their hands.
J. Adriance Bush assignee Of Henry Bros.
& Co. said the firm hal expected up to
$50 o'clock yesterday morning that DR.. Webb
would prevent their going under. Had DR..
Webb done what in Mr.. Bush's opinion he was
morally bound 10 do. the firm would noe have
gone VI der. Very large purchases Of stock had
been made. it was understood. for Webb inter
ests; but whether or not these stocks had really
been bought for account of DR.. Webb 1t would
be one Of the speakers duties to ascertain.
The Audit Company Mr.. Bush added, was at
work on the firms books.
II was announced yesterday that DR.. Webb
had resigned from the international Power d.
rectory. President Hoadlcy said that the resig-
nation would doubtless be accepted.
The Consolidated Exchange firm of Theodore
s. Meyer & Co. No. - Broadway. has lately
been booming in its weekly market letters Hack
ensack Meadows Dominion Securities and other
Meyer stocks. The head Of the firm Theodore
s Meyer is a brother OF Arthur L. Meyer, and
another brother. David s. Meyer, has been
partner in the concern. At the office Of the
firm yesterday afternoon the manager, L. A
Prince said in answer 70 questions:
David S. Meyer retired from the firm week
ago and don't know what business connec-
tion he has since made. He was a big man. and
we are little firm, with small resources. 1t
IS true that advocated the purchase Of
Dominion securities and other stocks OF that
group. but we never bought any Of those stocks
on margin for our customers. We sent our
toners 10 Ofenbach Moore No. we have
connection with that firm. for the rules of the