The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1902-05-08
BROKERS SHORT
INABILITY TO SECURE LOANS RE.
SUITS IN SEVERAL susPEN-
SIONS ON WALL STREET.
DEAL IN CERTAIN SECURITIES

Developments in Connection With the
Webb-Meyer Stocks the Direct Cause
of All the Failures-Securities In
voIved Offered at Less Than Half
Fridays Quotations but No Buyers
Are Found.
New York, May 6.-The develop
ments of the latter half of last week in
Wall street in connection with the
stocks of the Dominion Securities
company, the Rutland Railroad COM
pany and the Hackensack Meadows
company, resulted in the announce
ment in rapid succession of the sus-
pension of Stock Exchange brokerage
houses. The first firm to declare in
ability to meet obligations was Often
bach & Moore. Henry Bros. and Lock
wood, Hurd & Co. followed rapidly.
Offenbach & Moore were known prin-
cipally as traders in what were known
as Webb-Meyer" securities and the
announcement was made Saturday
that they had experienced some diff
ficulty in securing loans to enable
them to carry stocks for the interests
which they represented. On Saturday
afternoon, however, a statement was
made in behalf of the firm to the effect
that temporary arrangements had
been made and that it was hoped funds
might be obtained to pay off obllga-
lions and continue business. The sus-
pension shows however, that these
hopes were not realized. Mr.. Gordon,
of Henry Bros, whose suspension fol
lowed that of Offenbach & Moore, was
a director of the Dominion Securities
company.
The stock market opened weak with
the knowledge that number of fail
ures were imminent: Support was &C.
corded the market and there were
some rallies, but when sales under the
rule for suspended houses were made
the market gave way again. The high
priced stocks which had been under
recent manipulation were the severest
sufferers. Rutland preferred dropped
IA points, Westinghouse Electric Is,
New York, New Haven and Hartford
5, North American SIS, Northwestern
and Tennessee Coal 3. The Coalers
were affected in addition by fears of a
miners strike. Delaware and Hudson
dropped AZ, Reading 3, and others
smaller amounts. Losses Of 1 to 3
were quite general throughout the list.
Before the first hour had elapsed sup
porting orders were effective again
and there were some substantial raj
lies.
Webb-Meyer Securities Drop.
On the curb where non-stock ex-
change securities are traded in there
was an excited group of traders trying
to make sales in Webb-Meyer stocks.
Dominion Securities, which sold last
Friday at 1881, was offered at 20, but
the best bid was 20. Later it was Of
fered at SO and the bid declined to 10.
Hackensack Meadows was offered at
40 with no bid. On Friday it sold at
70.
Dr. w. Seward Webb, president of
the Rutland Railroad company, arriv-
ed here during the day from Shelburne
Falls. VT. It was said at his Office that
a statement on his behalf would be
issued some time during the day.
Henry Bros. made an announcement
after their suspension to the effect
that their embarrassment would be
but temporary; that they were SOL
vent and that they had suspended for
the time being in order to protect their
customers.
No statement of liabilities or assets
accompanied the suspension notices
and it was said such statements might
not be obtainable for several days.
Mr.. Pran of the Stock Exchange
firm of Webb & Prall made this state
ment on the authority, he said, of DR..
Webb:
"All the Rutland railroads preferred
stock sold by DR.. Webb last June, GER
tificates of which are still in his name
and amount to 1880 shares, will be
paid for in cash at 1OS by ]. w. Davis
& Co."
J. Edward Simmons, president of the
Fourth National bank, made this COM
ment:
81 consider this good thing. 1t will
result in conservatism instead of the
continuance of wild speculation. l
think the storm has blown over"
Announcement is made that DR..
Webb has resigned from the Interna-
tional Power directory. President
Hoadley said that the resignation will
doubtless be accepted.