New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-05
WHYBROWN &C0. FAILED
LARGE PITTSBURG LOANS.
G. I. Whitney Gires Them as One
Of Chief Reasons.

George I Whitney. Of Pittsburg, head of the
barking house of Whitney, Stephenson & Co..
,.hcb failed for over S5,o00,O00 in the panic last
fall in letter to friends in this city under date
Of September . says that one Of the chief rea-
sons for the recent suspension Of the Stock Ex-
change firm of a. o. Brown & Co was the
heavy advances it made to Whitney, Stephenson
& Co. and TO Mr.. Whitney personally before ana
after the Pittsburg firms collapse. A O. Brown
& Co. were the New York correspondents Of
Whitney, stephenson & Co, and were known at
the time to have been hard hit by the latter
FIRMS failure.
Mr.. Whitney IN his letter says that the loans
Of A. O. Brown & Co 10 his firm amounted to
hundreds of thousands Of dollars, and refers to
the collateral which the loans were made as
Of no possible use to A. o. Brown & Co. in the
panic period This collateral is understood to
have been bonds of the Whitney company, big
water power concern. with S10,oo0o0o stock and
$4,000 600 bonds which has a mammoth dam and
water power plant in North Carolina The COM
pany was organized by Whitney, Stephenson &
Co. and the bonds were underwritten by A 0.
Brown & Co.
Mr. Whitney praises in particular the liberal
ity of E r Buchanan, the managing partner Of
A o. Brown & Co. who was formerly a tele-
graph operator The letter follows, in part:
Perhaps no one person had as much to do with
the troubles. recently made public Of the firm No OF
ness diffculties became urgent last winter went
10 them in my distress and instead OF !! I!noILS i
their sympathy but likewise their support, botn
moral and substantial
On the very eve Of our failure they made large
advances 10 me collaterals which then could
vances served to discharge liabilities which, If not
discharged. would have placed US IN peril OF
iained their cordial and sympathetic attitude.
Mr.. E F. Buchanan especially treated me like a
did he give me the means to live. but to ex
6stribufe TO pers9ns eWed. where the loss would
have occasioned acute distress In other direc-
only shouldered his own burden. but in countless
instances assumed and paid my share, when l
could he have been compelled to do So
These many obgstions now amounting to ,os hun
70 be repaid If ever. only at the convenience OF
s baa6f His csrH is s bTosdeT 3San h5 big
shoulders and as enduring as the kindly light from
his steadfast eyes
Charles E -Littleheld, receiver for A. o. Brown
& CO, reiterated yesterday his former statement
that the affairs of the failed firm were in badly
tangled condition. Mr.. Littlefeld's statement is
as follows:
o Brown & Co voluntarily submitted themselves
nv sttorneVs The ezxamins+ion z being taken nv a
stenographer from the office OF the attorneys It
vas made for the purpose of enabling TO re-
dUce promptly to possession their assets and ac-
curing such information necessary to
enable promptly protect the interests of the
creditors in connection Herewith.
This examination has been continued upon those
1nes from time TO time since. and is now
going Or The affairs of the bankrupts in an
exceedingly tangled and complicated condition,
and ] have. under the advice of my counsel been
making every effort protect the most pressing
ana Immediate interests. AS soon that is ac-
c9mpllshed ] shall make such formal examination
OF the bankrupts as may he necessary. and shall
make an application therefor the early part of
week
i is impossible at this time for me to give any
adequate statement of the affairs Of the bank
Tupis The fun force of -bookkeepers Of the firm
nave been and still are at work. and haven't as
!et reached results uDon the books.