The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-28
BULL MARKET BUSHS LABAREE
HE'S INVISIBLE, AND CREDITORS
WANT 100000 OR SO.
Some Of Them Said 10 he Running His
Southern wires for Him rs an Expert.
ment-He Was suffering, Apparently,
From Too Much Business Only Recently.


ment-He Was Suffering, Apparently,
From Too Much Business Only Recently.
The firm Of j. Walter Labaree Co.,
dealers in stocks, bonds, ain and cotton
at AZ Broadway. went out of business
Saturday last owing seventy creditors
from all over the country something like
100000 Mr.. j. Walter Labaree, who
was the whole thing hasn't been seen in
his Office or at his home since Tues day,
and the sixty or 30 creditors who are In
town to get what they can from what Is
left are very anxious to find him. They
are holding meetings, have put their afairs
in the hands of lawyers and are thinking
of putting the company into involuntary
bankruptcy. Mr.. Labaree's lawyer says
that Mr.. Labaree will become a bankrupt
on his own account in few days. He had
a big Office and big wire business.
Rumors got around in Wall Street about
two weeks ago that Lal ee was in trouble,
and a reporter went to MIR Labaree about 1t.
Nonsense. said Mr.. Labaree: I'VE never
did such a business as we're doing now.
Why, it's enough to kill man. Here's
that they got only twenty nine quotations
in thirty-fve minutes. have had to write
them that there was 30 much business
coming this way over their wire that the
quotations had to wait
On Saturday last I.abaree quit because
he didn't have money to go on with, az some
times happens in his trade on rising
market, and on Monday the firm OF }. Walter
Labaree Co.. new corporation, was
Incorporated in Albany, with an alleged
capital of $4,000, Labaree and two dunn
mics as directors represented the firm.
The houses at the other ends Of Labaree's
wires we're notified on Saturday night
that the firm was in trouble, and Labaree
asked them to send representatives to
meet him in his Office in this city on Tues
day and arrange a settlement. Sixty or
more OF them came, and Labaree proposed
that they take stock in his new concern
at par for their indebtedness. He agreed
to pay dollar for dollar In that way and
said he'd accept his own stock as collateral
for so per cent Of the margin required
in future transactions. The stockholders
couldn't see 1t and said so.
The next morning 1t was found that the
office was pretty well stripped Of every
thing OF value and that lot OF the firms
books were gone. Mr.. Labarees attorney
says he hasn't seen his client since.
The creditors had another meeting at
the Hoffman House on Wednesday night
to discuss the situation. A. j. O'Halloran
OF Selma, Ala, who is said to have claims
amounting to about $4,000, was elected
chairman, and E. p Goodwin OF Petersburg,
w. Va, was very much In evidence. Good
man Is the man who made complaint
against DR.. Woodend for running bucket
shop and is said to have recovered most
IL not all that he lost through the Woodend
bust-up.
Some OF the out OF town brokers
decided TO nun Labaree's Southern wire
on their own hook, and yesterday they took
charge of his Office and did business with
some OF the cities down South. Otis Bass.
a creditor from Atlanta, managed the
temporary arrangement.
The lawyers who are looking out for the
creditors are Cantor, Mcintyre q Adams.
in the Broad Exchange Building, and Niles
4 johnson Of II Wall street. Neither firm,
through it's representatives, would tell
Yesterday what steps were contemplated
or was able to give any definite estimate Of
the amount which their clients had lost
through dealing with Labaree Some of
the creditors estimated the amount at
$500, 900 and said that a committee was
going to see Inspector McClusky about
the matter. McClusky said yesterday after
noon that he didn't know anything about
the case.
Labaree's lawyer is Stephen Gala CHAN
Of q William street. He said:
In
Sl2s,0o0 and his assets are about 5000.
which is money in the bank. I want to
say that he didn't run a bucket shop. He
was dealer In stocks. bonds grain and
cotton, and the cause Of his suspension
OF business Is due to the fact that he was
ON the short side of the bull market
Does that mean" he was asked, that
he was short Of the long stocks which the
houses at the other end of his wires were
carrying?'
@Not necessarily" he replied. MIR. La
baree continued to pay out money until
the very last minute on Saturday. He has
offered to settle in full with his creditors,
giving them stock In his new firm for their
claims: but they refused that at first After
their meeting on Wednesday ajority
OF them wanted to accept the offer, but
the managers OF the new firm declined to
renew 1t unless all Of the creditors Joined
in"
Labaree is about IS years old. His
firm formerly did business on the Consoli-
dated Exchange under the firm name OF
Peabody 4 Labaree, the other member Of the
firm being Labaree's father-in-law, James
c. Peabody The firm got into trouble with
the officials of the exchange, and Peabody,
who owned board seat. withdrew from
the firm. Howard Caldwell Of Columbus,
N. c., sued the firm this year on the allega-
ton that an order had been bucketed, and
got judgment last June for $ll.loo and
costs.
l.. A. Prince. Labarees manager" was
really his hacker, according to the talk
in Wall Street yesterday.
MOUNT VERNON. Oct 27.-Labaree.
lived with his wife and young son
NJ G,,ro