The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-12-08
PTTTSBURG BROKERS GO DOWN
WHITNEY, STEPHENSON q co.
BECOME BANKRUPT.

RMlfure Of Fort Pitt National Bank Pre-
elpiGatedi Suspension -HOuse I'm DIM
Guilty Through Being COthpellen to
Dispose OF HOstetter Coke Co. stock.
PErTsBUR0, Dec. Tn voluntary bank
ruptcy proceedings we're fled in the United
States District Court against the Whitney
and Stephenson Company and Whitney.
Stephenson h Co. OF this city to-day. A
petition for a receiver was also fled in the
case OF Whitney, Stephenson and Company.
The Colonial Trust Company wS& appointed
r~eceiver by Judge A. G. Dayton. the bond
being fixed at SIC. 900. The liabilities OF
this concern are said to be 400. 600 and tho
ASsets are an account OF STOO. 900 with the
Whitney and Stephenson Company.
Whitney, Stephenson q Co. until recently
we're considered one Of the strongest
brokerage houses In Pittsburg. The COM
pRny a few years ago succeeded the old
firm of Whitney q Stephenson. which had
been in business since 1871, and Mr.. Whitney
was the senior Pittsburg member Of the
New York Stock Exchange. His men,
bsrship was recently sold to 4. r. Buchanan.
q member OF the firm Of A.. O. Brown a Co.
OF New York. the Eastern correspondents
Of tho house. and who had been interested
in different projects with Whitney, Stephen
son a Co.
The immediate cause Of the failure OF
Whitney, Stephenson 4 Co. is generally
believed to have been maturing obliga-
tons on November /. One large loan
was secured by 5000 shares Of stock of the
aostetter Coke Company, Of which Mr..
Whitney has been reported as owning
about 100 shares. In order 10 liQuidate
the loan the stock was sold at $40 a shareto
the II. C. Prick Coke Company. h coke
- = NAs-
whitney stock and il is understood that
repeated offers had been made to agree
upon a satisfactory price.
Finally a plan OF having the property
appraised by three persons was agreed
upon, but. according TO street gossip. h
sale had to be contaminated before the
appraisers were able to make their report.
IL is also said that 500 a share has since
been bid for the stock.
The fling OF the bankruptcy proceedings
may invalidate the sale, as the act passed
by Congress nullifies all transactions made
within four months Of the fling Of petitions.
This 100 days was provided for the pro-
lection OF the persons affected and for
creditors. II the sale is set aside the in
creased equity for the creditors will prob
ably be material. About 1900 shares Of
minority holdings are reported as being
opposed TO accepting 100 for their stock.
The failure OF Whitney, Stephenson 4 Co.
had been expected here for several days
and had been considered certain TO come
after the failure of the Fort Pitt National
Bank Of Pittsburg on Friday. Both George
l. Whitney and George l.. Stephenson
were directors in the bank. and the firm
was believed to have funds tied up in it.
Apart from loss in the bank failure it has
been known Tor some time that the firm
or individual members of il had overex-
tended their resources by investment in a
humble Of costly industrial enterprises.
10 Known ~ Gn hapk0rc amt hrnkora
at % Broad street, New York correspond
ents of the suspended firm, were not in
jured by the failure. Early in the week
the New York house took over the Pitts
burg houses interest in the Whitney Power
Company, n it was announced yesterday
that the Stock Exchange membership of
George /. Whitney had been transferred
TO Edward +. Buchanan. a partner in A. D.
Brown 4 Co.. MIR. Buchanan succeeded
Mr.. Whitney as president Of the Whitney
The Whitney Power Company is a con-
Germ organized with $40 900 900 capital to
supply power for "a large section of the
cotton manufacturing district of North
Carolina. IL owns IA 200 acres OF land
and has nearing completion a dam on the
Yadkin River and a power plant calculated
to develop $4,000 horsepower. 1t is ex-
pected that the plant will be in operation
within six months.
George /. Whitney recently lost control
also of the Hostetter Coal and Loke TOM
pany. in which he owned $1,000 out Of 30, COO
shares. The company has paid dividends
recently at 30 per cent. Eight thousand
shares of the stock we're up with the Union
Trust Company of PittsbuTg as security
for a loan. The oar was called and the
took was taken by the II. 4. Erick Coal
and Coke Company at S12O "A share. The
par value of the shares is $50. Mr.. Prick.
having previously secured other blocks Of
stock. has since been in control II the COM
pany.
A member of the firm of A. q. Brown &
Co. said that the suspended firm had CON
Quoted no operations in the New York
stock market for some time. The sus-
pension accordingly was without other
than sentimental effect here