The Montgomery advertiser., 1902-05-04
Prices of Stock Run Up by.
 Questionable Methods.
Sixty Banks Throughout the Coun- try are Out 1Gors Than si,ooo,- GOO and ToSal Losses Are Estimatsd tt Between s5,-
 cod, ,ooo and BIO, ,ooo, 900.

New York. May a-The slump in the stock market affecting what is known on the street as the Webb Meyer stocks, was
 followed up late tonight by story that
 warrants had been Issued for the arrest
 of oneNor more persons in this connection.
 The story was that the order of arrest
 was issued upon m afidavit made by a
 Wall Street operator. who claimed to
 have been neeced and further afndavits
 by members and employees Of various
 firms who alleged they know the secrets
 of the deal
 It was further said that from informa-
 ton placed in the hands of Pierce M.
 Brown, an attorney. It was alleged that
 sixty banks In different parts of the
 country arc out more than N,ooe.ooo by
 stock manipulations and the total loss
 at stake is placed at from ss.oOc.ooo to
 s1o.ooO, ooo
 It was asserted that Justica Greigerich
 of the Supreme Court, had issued the
 warrants He could not be found to
 verify the statement until late tonight. when he said: 4 SV &aN hs cSu TcmSfnUcT. tn0 8IaIG-
 ments which have been made are true, and the quotations of the afidavits is cor
 rect. though It must be remembered that I have "a great many papers to deal with in the course of a day-of an hour-and without having them at hand cannot be too certain as to what they contain. 1T remember an order Of arrest was issued in a civil action upon various saf- fidavits chargink fslse and ffshduienf rep- resentations ae to the valuS of a certain stock or stocke ff was ebArked ffi one of the allegations oi the eoinplaint to use the language of the affidavit. that wash sales had heen made a fictitious value of the stock. The order of arrest was made only for one man, although I had signed four. Lawyer Brown, how ever, only wanted one man arrested and that was because 1t was feared that he would get away"
 Justice Greigerich said in conclusion that he was not able to say positively who the man was for whom the warrant called. a a The methods by which the wash sales" were undertaken 1t is said. are given in the affidavit as follows: Orders would be given to several brokers to sell the stocks at given figures, and orders would simultaneously be given to other DTokefS 10 Duy tntSe StOchs SV thdt tBc purchases by the last lot would be made from the first. In this manner prices were reported of supposed sales. the sales and purchases being made. all of them, for the same people,"
 These supposed customers. the affidavit continues would refer. when making such transactions. to other supposedly responsible houses. which were in reality a part of syndicate and which would report favorably on them. Brokerage firms were organized for the purpose of "washing'' the sales. The affidavit, 1t Is said, mentions a number of banks located | in this city, Boston. Philadelphia, Wash ington. Chicago and other cities. which are alleged to have made loans on some of the stocks An effort was made to- night to see A. l.. Meyer, of the firm which has been mentioned as being in- terested in the Webb Meyer stocks. but it was said at his home he had gone to Long Branch At the city residence of pr. W. Seward Webb the information was given out that Dr. Webb was not there.