Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-05-08
BROKERS ARE
FORCED To
WALL
THREE NEW YORK FIRMS GO
TO THE WALL MONDAY AZ
TER FAILING TO MEET THEIR
OBLIGATIONS.

NEW YORK, May 5.-The developments
of the latter half of last week in Wall
street in connection with the stocks of the
Dominion Securities company. the Rut-
land Railroad company and the Hacken-
sack Meadows company. resulted today in
the announcement in rapid succession OF
the suspension Of stock exchange broker
age houses.
The first firm to declare inability to meet
obligations was Offenbach & Moore.
Henry Bros. and Lockwood, Hurd q co.
followed rapidly.
Offenbach & Moore were known princi-
pally as traders In what were known as
''Webb-Meyer" securities, and the an
nouncement was made Saturday that they
had experienced some difficulty IN secur-
ing loans to enable them to carry stocks
for the interests which they represented.
On Saturday afternoon. however, a state
ment was made in behalf of the firm to
the effect that the temporary arrange
ments had been made, and 1t was hoped
means might be obtained today to pay on
obligations and continue business. Today s
Suspension shows, however, that these
hopes were not realizend. The offices OF
Offenbach & Moore were not opened for
business at all today.
The stock market opened weak with the
knowledge that a number Of failures were
imminent. Support was accorded the
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
s, North American is; Northwestern
and Tennessee coal. 3.
On the curb where non-stock exchange
securities are traded in, there was an ex-
cited group Of traders trying to make sales
in Webb-Meyer stocks. Dominion securt-
ties. which sold last Friday at 1872 and
on Saturday at 20, were offered today at
70. but the best bid was 20. Later II was
offered at 50 and the bid declined to 10.
Hackensack Meadows was offered at 40,
with no bid. On last Friday 1t sold at 49,
DR.. Seward Webb, president of the Rut-
land Railroad company, arrived here to-
day from Shelburne Falls, VT. 1t was
said at his office that a statement would
be issued some time during the day. Hen
~ Brothers made the announcement after
their suspension that they were solvent
and that they had suspended for the time
being in order to protect their customers.
No statement of liabilities or assets ac-
companied the suspension notices. and II
was said such statements might not be
obtainable for several days. Up to II
o'clock there had been no service of the
against A. i. Meyer.
Mr. Moore. Of the firm Of offenbach 8
Moore when seen early this afternoon
said that no assignee had been appointed
for his firm and that the suspension would
be only temporary.
]. Edward Simmons. president Fourth
National Bank, made this comment:
ct consider this a good thing. 1t will
result in conservatism instead of the con.
tinuance Of wild speculation. think the
storm has blown over"
President Hendricks, of the National
Bank of Commerce. expressed himself In
similar terms.
H ]. WEIR, of the firm of Henry Broth
ers & Co., said that on Friday they re-
ceived an order to buy 1900 shares OF
curb stock to be delivered to Offenbacf
& Moore today. The suspension Of that
firm prevented delivery and when the
1000 shares of stock was left on the hands
of Henry Brothers & Co. this morning II
tied up their entire capital and forced
them to suspend temporarily
No statement to the public was made al
the close of the conference between DR..
Webb, Mr. Meyers and the others. DR..
Webb's private secretary said 1t was pos
sible that its issuance might be postponed
for several days.
William Scherer, manager of the New
York Clearing House. said that no meet
purpose of taking measures to ease the
money market.
There is no reason for such an action,
he went on. The rates are not high and
besides the New York banks cannot under.
take to provide funds for those who are
'kiting' strange stocks to prices all the
way from three to five times their rea
worth.
There Is the less occasion for actor
now by reason OF the perfectly sound con
dition os all our banks In New York and
responsible brokerage houses as we'll. They
have kept we'll away from participation
in the syndicate operations in the stocl
| exchange"
A. b. Hepburn, vice president of the
Chase National Bank, expressed the con
viction that the outlook offered nothing
| TO excite alarm.
Early in the day the National City Banl
loaned over its counter large sums Of
money at from 6 to per cent. Howard
p rockingham, a call loan broker. acting
| for the First National Bank, the Western
National Bank. Metropolitan Trust. Unior
Trust and several other institutions. loan
ed large sums at from to u per cent. II
! the last hour. when the money rate weni
| as high as "A to Is. rockingham announc
ed that he had s5.OOOOOO to loan at Is pei
cent.
| WANTED-Two statesmen in each state; So
Il exnensas. norr1nnent position. Pentcks