The Savannah morning news., 1902-05-04
A WALL STREET SENSATION.
Banks Alleged to Have Been Done
Out of $1,OOO,OOO by Manipulation
of Webb-Meycr Stocks.

Out of S1,OOO,OOO by Manipulation
of Webb-Meycr Stocks.
New York, May 3.-The slump in the
stock market affecting what is known
on the street as the Webb Meyer
stocks, was followed up late to-day
by a story that warrants had been
issued for the arrest of one or more
persons in this connection. The story
was that the order of arrest was is
sued upon an affidavit made by Wall
street operator, who claimed to have
been fieeced, and further affidavits by
members and employees of various
firms who alleged they knew the Sc
crets of the deal. 1t was further said
that from information placed in the
hands of F. NJ. Brown, an attorney,
it was alleged that sixty banks
in different parts of the
country are out more than ST.
100000 by stock manipulations,
and the total loss at stake is placed
at from S5,OOO,0 900 to $10,000000.
1t was asserted that Justice Geig-
erich of the Supreme Court had issued
the warrants. He could not be found
to verify the statement until late to-
night, when he said:
ments which have been made are true
and the quotation of the affidavit is
correct, though it must be remembered
that / have a great many papers TO
deal with in the course of day.. of an
hour, and without having them at hand
cannot be too certain as to what they
contain.
Il remember an order of arrest was
issued in a civil action upon various
4 11,sa fol n II
lent representations as to the value of
a certain stock or stocks. 1t was
charged in one of the allegations of
the complainant, to use the language
of the affidavit, that wash sales had
been made which gave a fictitious
value to the stock. The order of ar
rest was made only for one man al
though 1 had signed four. Lawyer
Brown, however, only wanted one man
arrested and that was because it was
feared that he would get away.
Justice Geigerich said in conclusion
that he was not able to positively say
who the man was for whom the war
rant called.
How wash Sales" Were Made.
The methods by which the wash
sales" were undertaken, it is said, are
given in the affidavit as follows:
"Orders would be given to several
brokers to sell the stocks at given fig
ures, and orders would simultaneously
be given to other brokers to buy these
stocks so that the purchases by the
last lot would be made from the first.
In this manner prices were reported
of supposed sales, the sales and pur-
chases being made, all of them, for the
same people"
The supposed customers. the affidavit
continues, would refer, when making
such transactions to other supposedly
responsible houses, which were in real
ity a part of a syndicate, and which
would report favorably on them
Brokerage firms We're organized fol
the purpose of washing the sales.
The affidavit, it is said. mentions {
number of banks located in this city
Boston, Philadelphia, Washington
Chicago and other cities, which are
alleged to have made loans on some OF
the stocks.
It is stated positively that DR.. Webb
is not charged with any offense in con
nection with the application for the
warrant or that he received and bene-
fit from the alleged fraudulent trans
actions
Up to a late hour tonight no arrests
had been made.