The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1908-08-27
HEAVY TRADING
CAUSES FAILURE
A. o. BROWN & CO., BIG BROKER
AGE FIRM, GOES TO WALL.

A. o. BROWN & CO., BIG BROKER
AGE FIRM, GOES TO WALL.
LIABILITIES VERY LARGE
May Be Over 81 900, ooo-stoek Market
Made Nervous by Result Of Last
Saturdays Spectacular
Session.
New York, Aug. 26-The failure OF
the big brokerage firm Of A. o. Brown
& Co., for a sum popularity estimated
as running well above s1,000,000, sent
a nervous thrill through the stock
market Tuesday Coming as a climax
to the bewildering trading in last Sat
urday's market, the suspension Gre
ated an extraordinary degree of pub.
lie interest, but was looked upon by
high stock exchange interests as Of
fering an early solution of the tangle
growing out of the most remarkable
two hours session the New York
stock exchange has known in many
years.
While there was no question in Wall
street that the situation created by
the failure could easily be taken care
of, there was distinctly a feeling of
apprehension lest other firms might
unwittingly be drawn into the affair
as a result of the extensive orders
scattered through commission houses
during Saturdays spectacular pro-
ceedings.
Enormous Trades Not Settled.
The transactions of A. O. Brown &
Co., covered nearly rs per cent. Of the
trading in the sensational weekend
session of the stock market and it was
stated officially by a member Of the
firm that delivery had been msde on
osly 277,000 of the more than 100000
shares handled. How many Of the
outstanding shares represent the deal
ings of customers and how many were
carried on the firms account 1t was
impossible to learn.
The afternoon was filed with ru-
mors as to various outside sources
that may have been responsible for
the course of the firm in Saturdays
market, when the total sales record
ed on the floor Of the exchange for
the two hours of trading amounted to
more than 100000 shares, as against
cle-third Of million during the full
five-hour session of Monday, but most
of these vera dissipated. Mr.. Blu
chanan, a member of the firm, an
nounced positively that the firm had
had no relations whatever with Thorn.
as w. Lawson.
Was very Large Firm.
A. o. Brown & Co. were members OF
the New York stock exchange. New
York cotton exchange, Chicago stock
exchange. Chicago board of trade and
the Cleveland stock exchange. They
rad branch houses in Chicago. Cleve-
land, Buffalo, Erie, Pa, and Toronto.
In this city they maintained expensive
branch Offices in four of the fashion
able hotels and at two uptown ad-
dresses. Their principal office was
at 30 Broad street, but a few doors
from the stock exchange building.
Within the past few months the firm
had spent $4,000 in refurnishing its
Broad street home.
The membership Of the firm In
cluded Albert o. Brown, Lewis Ginter
Young, G. Lee Stout, Edward F. Blu.
chanan, Samuel c. Brown and w.
Rhea Whitman. Private wires were
maintained to all principal cities.
The extensive trading of the firm
it is believed, was confined largely
to New York, despite the fact that the
house had made specially Of western
business. Although organized only in
the latter part of 1902, the firm had
come TO take a prominent part in
trading on the stock exchange floor
John W. Rhoads, cashier of the firm
was named as assignee, with D. w
Noel as counsel.
Creditors Force Failure.
WHEN the ldIluIe was duuOuuCSu q
member of the firm said that its af
fairs were in a badly tangled condi
ton as the result Of Saturdays trad
ing and that it was thought best to
make an assignment at once. 1t is
understood that brokerage firms who
were awaiting the delivery of stock
from A. o. Brown & Co, became i'm
patient along toward noon and sent
word that they would allow but few
more hours of grace. All attempts
to secure further delay were futile
and the suspension followed
It was also said that the banks
which carried the accounts of the
house declined Tuesday. because Of
the unsettled condition in the affairs
Of the firm following Saturdays spec
tacular business, to further certify
any OF its checks.