Omaha daily bee., 1903-06-03
HEAVY FAILURE IN TORONTO
Canadian Brokers Go to Wall and Create
Panic.
SEVERAL MILLIONS ARE INVOLVE
Continuous Decline in Securities Held
by Ames & Co. Compel Firm to
Announce Suspension of
It's Business.

TORONTO, ont, June "A, E. Ames &
Co., one of the leading firms of bankers
and brokers in Canada closed their doors
today Their failure was due to heavy
declines In Canadian securities which have
been extensively dealt in on New York and
Boston exchanges as well as on the ex-
changes here and at Montreal.
1t is stated that when market conditions
have become settled and the securities held
by the company and their customers reach
figures approXimating something like their
actual value assets will fully offset their
liabilities. The stocks in which Ames &
Co. and their clients have been largely in
terested in are Dominion Steel, common,
purchased around $40 and which are now
selling at SIS per share; sloss-shefHeld and
other industrials purchased at figures much
higher than their present prices. Twin
City. which has declined from 12s to s2 was
another stock held in large blocks by the
firms clients.
After a meeting Of the members OF the
firm IT was decided to suspend payment.
The following notice was posted:
Owing to the continuous severe decline
in the securities market we have found II
necessary to suspend payment and would
few days until we, can prepare a statement
of our affairs and decide what is best to
be done. AMES & COMPANY.
The liabilities of the firm are hard TO get
at, but rough estimates of them show as
follows:
To depositors in the savings bank branch.
about 100000.
No estimate can be given of liabilities to
clients whose stocks were being carried in
4 -
] thousands of dollars.
To bankers and financial institutions on
\ stocks the liabilities. it Is expected, will
reach S1O,OOO,OOo.
Liabilities under this head are secured
| by the stock plus the margins, so that there
is no possibility of loss to the lenders uni sss
all stock values disappear.
On this announcement a panic ensued
| on the stock exchange. Hundreds of per-
| sons gathered in front of the offices OF
! the company. clamoring for information
as to the extent OF the FIRMS liabilities
| The last statement Of the savings depart
ment OF the firm showed $4,000 on deposit
| It is impossible to figure the firms total
| liability at the present time owing to the
extensive fluctuations in prices Of securi-
| ties in which the company and its clients
are heavily interested
| 1t is stated on good authority that Mr.
Ames has put 100000 into the business
and the other members of the hrm. A. r
| Tudhope, F. D. Frazer and A. E. Wallace
sums aggregating nearly the same amount
1t is known that one Of the Toronto banks
recently advanced 10000 to Ames & Co.
in the hope that that amount would b'
suficient to tide over the affairs OF tn,
firm.
Ten million dollars is the amount Of thu
firms liabilities as generally agreed upoT
by bankers and brokers. Against thi!
amount the company holds securities which
in any half normal condition Of the marke
would be ample.
B. e. Walker, general manager OF th'
Canadian Bank Of Commerce said toda!
that although Mr.. Ames kept his cash ac
count at that bank. their relations haC
not been at all close for many months past
Mr. Ames' Indebtedness to the bank wal
less than $3.50, 900. and the bank was secured
by stocks which are not affected by tn,
suspension. Nor would Ames g. Co.'S sus
pension. Mr.. Walker said. affect any othsi