The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-06
TWO MORE STOCK HOUSES FAIL
>HtRP 4 BRYAN OWE Sj,OO0, O0O,
MOSTLY SECU RED.
ureak IN Nlrsinla-( 'arOlina Chemical stock
crippled Them--Ranrlbutt, Hatch &
40. comparatively UninIpOrtant
House stocks Make New Low Records

4
so. II Comparatively UnlmpOrtant
UouSr- stocks Make New Low Records
The failures of Sharp q Bryan and Hurl-
Lutf. Hatch & Co., making i'll all six broker
oye houses that have gone down within
ty,lv, days. were announced on the Stock
Evchang, Yesterday. The chairman of
,l. eychang, announced the failure of
Sharp Il Bryan shortly after the morning
session and that Of Hurlbutt, Hatch & Co.
/, ,Hn Inst hour of the afternoon.
TIE failure Of Sharp & Bryan, which
wa. bv far the more important of the two
hrokprag, houses, had been foreshadowed
from ha Wall Street point of view for some
DAYS by the decline in the securities Of
thn Virginia. Carolina Chemical Company,
H. which il was known the house was largely
t.ora,.ed The firm was formed in July,
1891. and consists of Willoughby W, Sharp
and Charles $ Bryan, both members of
the STOCK Exchanga The firm announced
tina, George Il Sullivan Of Sullivan 4 Crom-
well hal been appointed assignee. with
Nelson Cromwell as counsel, Mr.. Crom
w.l. made this statement
The firm made the general assignment
for the purpo~" of nsuring equality among
Ms creditors without preference. The cause
: directly attributable to the sudden and
extreme shrinkage in the market value of
,ho securities of the firm. The liabilities,
mostly secured are about 81, 900, 900. The
value Of assets. comprising almost exclu-
syely stock Exchange securities to the
amount OF several million dollars, ia de-
pendent on market conditions. Most of
the creditors recognizing that present con-
dtions are short lived, are very fairly and
wisely withholding their securities from
sale
Mr. sullivan supplemented this in an
interview with the statement that the
condition of the firms finances was being
Investigated and that so far as he had gone
it seemed reasonable to expect that they
might be Strengthened out very satisfaC-
tory.
1t is understood that the suspension Of
the firm was due almost entirely to the de-
cline in the Virginia Carolina stocks. The
Arm was a large holder of the securities,
as we're its clients, and loans of the firm
we're backed by Virginia Carolina stock
as part Of the collateral.
On the S ock Exchange on Tuesday the
common stock sold down to IS, closing
ferred stock broke from 90 to 80 and closed
at s2]+. a net loss of l6H points. At the
opening yesterday the common stock
broke to Il, but recovered to 234 at the
close. The preferred stock broke from
IS TO 80 and closed at So. In February last
the common stock sold as high as 66ss and
the preferred as high az 1884.
The annual statement of the Virginia
Carolina Chemical Company was issued
recently and evoked much criticism on ac-
count of the small surplus left after the
payments OF dividends and fixed charges.
A little later it became known that the
companv was irving to borrow money In
the open market, having devoted its large
earnings to necessary improvements. This
attempted borrowing led to weakening
in the prices Of its securities and furnished
the opportunity for drives against them.
The company had tloated $1,000 900 OF bonds
for the purchase Of additional plant curing
the year.
Both Mr.. Sharp and Mr. Bryan are well
known in the Street. Mr.. Bryan is mem
Der of the Governing Committee of the
Stock Exchange. The firm was known on
account of its connection with southern
enterprises and the Southern element in the
Street patronzed it largely 1t is under
stood that il has no open contracts in the
market and that there is good margin on
It's loans, which will permit satisfactory
liquidation Of its assets. The formal
assignment Of the firm was filed in the
County Clerks Office yesterday afternoon
1t was said yesterday this was one Of
the firms whose names were freely handled
on the floor Of the exchange last week,
In fact il was def nitely asserted that a
certain member of the exchange went on
the floor and said that he knew that the
Arm yaa on rho Toint of slISppnsiOn. This
statement is believed to have injured the
firm very materially and undoubtedly
pr"cptated IFS suspension. The mat ter
has been discussed more or less by eX-
change members and officers and it is the
general belief that gossip of this sort should
he restrained by definite action on the
part Of the Governing Committee.
The firm Of Hurlbutt, Hatch Co., the
announcement of whose failure was re-
oered with comparative .equanlmity on
the stock Exchange, was formed on sept
p. 1892 and consists Of John Henry Hurl-
butt f. sanford Hatch and j. FraiIey
smith, Mr.. Hatch, the floor member
was admitted to the Stock Exchange in
1919 Tie firms Offices were at II Broad
way. II b Ketcham is assignee. 1t Is
understood that the firm had very few
outstanding contracts Of any moment
Il had been the subject Of rumor for at
least 40 wooks
A petition in bankruptcy was filed against
Hurlbutt, Hatch d Co under which Mr..
hetCham was made receiver. The petition
ing creditors are the Phoenix Cap Company,
ssoS for money deposited; Phoenix Cork
Company. 50 Gao for money deposited, and
Martin SAKE, s23,l9l on an assigned claim
oi Harriet l., Smith for 1851. balance Of
money realized from sale Of stocks, and
NGHo0, VAIN" Of 200 shares Of stock OF the
United Gas and Improvement Company de-
nosited with the firm az margin Mr..
Hatch il the son Of Nat Hatch, the broker
who was killed by jumping from the, roof
Of The house of Mrs Lillian Schotieh at
Sixth avenue and Twentieth street in 1888.
10 was reccHtly sued by "A firm of merchants
N this city for linens supplied to Miss
Thorue
Al the opening of the Stock Exchange
there was an evident reflection of impending
suspensions in the early quotations Be
lore the suspension of Sharp Il Bryan was
announced there was a slight rally, but
pressure was plain In a number Of stocks,
showing that the liquidation Of loans was
under way In the early dealings the
strength Of United States Steel shares
ieiPei the market. but with their decline
me general list became affected
The market continued weak throughout
ne day on liquidation OF loans and selling.
prices
The following are some Of the declines
,or n" year in the more important stocks,
ne low prices having been made in yester-
days dealings