The Washington herald., 1907-10-23
Big HOUSE SUSPENDS
Mayer & Co. Forced to Wall
by Slump in Stocks.
LIABILITIES OF SIX MILLIONS
Failure of Customers TO Meet Mar
gins and Heavy Drive i'm Della
ware and Hudson Assigned as Rea-
sOn-Head of Firm Declares House
VIII Pay CE-ditOrs in Full.

New York, Oct 23.-one failure was an
nounced on the stock exchange to-day
just before the close Mayes & Co. with
Offices al II Wall street. notified the man
agers Of the exchange at 80 o'clock that
they we're unable to continue. and that
an assignment had been made for the
benefit Of their creditors II was an
nounced at once on the floor OF the ex-
change and caused a wild scramble 20 sell
in the last fifteen minutes Of the day
According 10 the attorneys Of the firm
the liabilities are placed at approximately
$6.000.000, but it was said that the assets
would be sufficient to pay all its creditors
in full and that the firm would undoubt-
edly resume. Failure OF customers to
meet their margins and the slump in the
market, especially in Delaware and Hud-
son, were given as the reasons for the
failure.
The firm Of Mayer & Co. was formed in
June, 1906, with Marcus Mayer. George
R. Leslie, and Abraham R. Bayl!s as
partners.
Failure Came as Surprise.
Rumors OF the impending failure had
been heard in the street all day. but
when it actually came it proved TO be
somewhat Of a surprise. Mayer & Co
had been known as specialists in Della
ware and Hudson, and the books Of the
railroad show Marcus Mayer as one of
the heaviest stockholders in the road.
much OF which was said to have been
held on margin. In the last annual
meeting. held last spring, Mr. Mayer
voted in his own name LEGO shares, the
firm voting 1900 shares. 1t was at this
time that the road issued its $7.o00.OO0
bond issue, over which there was a hard
fight. David Lamar, acting, it was said,
for Daniel G. Reid, fought the Mayer
interests and caused a heavy drive in
the stock 10 be made. According 70 an
authoritative source. Mr.. Mayer paid over
500 a share for his holdings The fight
last spring ended with the suicide OF
the roads president, David Wilcox.
while on an ocean liner. due, il was said,
70 his belief that he would be forced
from the presidency OF the road
Heavy Loses in D. AH.
All day to-day there was a drive on
Delaware and Hudson which caused 1t 10
break to the closing price. 1S9. This would
show a loss to Mr.. Mayer Of $4,000 as a
loss. He is reputed to be very
wealthy. When rumors of the failure got
about in the street to-day, Mr. Mayer
said that he received many offers Of as
sistance, but that it was hoped that those
customers who were in the market would
come TO the firms aid with additional
Many Of the firms customers.
however, were tied up in the suspension
Of the Knickerbocker Trust Company. and
it then became evident to members Of
the firm that they would have to go IN
der Their attorneys, Alexander & CeIby,
were sent for and the firm made an as
signment for the general benefit of its
creditors to William F. Goldbeck of the
law firm
Mr.. Mayer declined to go into the firms
failure, but said that the failure was
really more in the way of a temporary
suspension, and that it would be able
to meet an its debts and would surely
resume business