The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-05-06
MILLIONS ARE INVOLVED
No Definite Statements by the Par
ties Interested.
THE MARKET SERIOUSLY AFFECTED
The Day Closes With Rumors Of More Failures
Criminal Prosecution and the Like.
SoIvency of Other Firms
Called in Question.
(By the Associated Press.)

New York, May 5.-Thrce stock ex-
change firms, Offenbach & Moore, Henry
Bros. & Co, and Lockwood, Hurd & Co.,
announced their suspension in the order
named at the opening of the market to-
day. The amount of their joint liabili-
ties is variously estimated at from ST.
600, 900 to $5,OOOO0O; assets unknown,
and in the opinion of good judges, a
goodly portion are of doubtful value.
No very definite statement was forth
coming from the parties most interested.
The day closed with the usual rumors
of more failures. criminal prosecution
and the like. The solvency of several
financial institutions of standing was
brought in question, but for such rumors
there appeared to be absolutely no
foundation.
The market was seriously affected by
the three failures, stocks breaking
heavily at the outset, but the closing
was fully steady. Call money opened at
10 per cent, rose as high as 20 per cent.
and closed per cent
weeks serious decline in a number of
industrial stocks. Two of this group,
Rutland Railroad, preferred. and St.
Lawrence and Adirondack, are regularity
listed on the Stock Exchange. The
others, including Dominion securities,
Hackensack Meadows, North American
Lumber, Pulp and Storage Power, are or
rather were, most extensively dealt in
on the curb.
1t was an open secret last Saturday
that two or more concessions were in
volved in the decline of the Webb Meyer
properties and disactrOus results were
feared News of the three failures came
at the outset of the days operations.
All told 1926 shares of Rutland, pre-
ferred, were traded in during the day at
from sc to SO, closing at %, a net loss
for the day of five points The rally in
Rutland from the low point followed an
nouncement that Vanderbilt interests
had agreed to take up block of those
shares for account of some of the en-
barrassed spectators. There was prac-
tically no trading in the Webb Meyer
stocks.
The assignee of Henry Bros & Co. is
j. Adriance Bush, and of Lockwood,
Hur d Co. Edward d. Perine Both as
signees said they were unable to make
even an approximate estimate of Iiabli-
ties and assets today. Ofcnbach &
Moore, although suspended from the
privileges of the Stock Exchange had
not really assigned. Mr.. Moore said their
embarrassment would be only temporary.
At Ofenbach and Moore's Offices in the
Broad Exchange building. Mr.. Moore WAS
on hand but declined to be seen. Mr..
Offenbach was reported to be i'll. 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 con-
ferences between Arthur b. Meyer and
bis associates. Among those at the con-
ference were Creighton Webb, brother
of DR.. Webb. Mr.. Webb declined abso-
lutely to discuss the situation.
Mr. Prall, of the Stock Exchange firm
of Webb and Prall, of which DR.. Wcbb's's
brother is senior partner, made this
statement shortly before noon:
"All the Rutland preferred stock sold
by DR.. Webb last June, certificates OF
which are still in his name, and amount
to $12, 500 shares, will be paid for in
Se1oI at 1pc ny y. w. DdV1S ana company.
At the office of Davis and Company
it was said that the stock was being
bought in as fast as it was being present
ed. No further information was given.
Wall Streets conseTvativemcn were al
most unanimous in the opinion that to-
days happenings had done much to
clarity the financial atmosphere From
S15,000000 to $25 600 GOO was loaned by
the downtown banks and trust com
panies IN the course of the day. The
great bulk of the money was loaned at
from 10 to Il per cent.
A report that the clearing house asso-
citation had called a meeting to check
the rising tendency of the money market
was characterized as absurd by Manager
William Shorer There was no reason
for such action he said, besides in his
opinion such a course would offer en-
couragenlent to a number of irresponsible
interests.