Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-08-26
A. 0. Brown & Co., Big
Brokerage Firm, Suspends
A Sequel 10 Last Saturdays
Sensational Trading.
Liabilities May Exceed a MlIIion.-.
Many Branch Houses.

New York, Aug. 25.-The failure of
the big brokerage firm of A. o. Brown
& Co, for a sum popularity estma ted
as running we'll above $1,000,000 sent
a nervous thrill through the stock
market today. Coming as q climax to
the bewildering trading in last Sat
urday's market, the suspension Great
ed an extraordinary degree of public
interest but was looked upon by high
Stock Exchange interests as offering
an early solution of the tangle grow
ing out of the most remarkable two
hours session the New York Stock Ex-
change has known in many years.
While there was no question in Wall
Street this afternoon that the situa-
ton caused by today's failure could
easily be taken care of there was dis
tinctly a feeling OF apprehension lest
other firms might unWitt!nglE be
drawn into the affair as result Of the
extensive orders scattered through
commission houses during Saturdays
spectacular proceedings. The translc-
tions of A. o. Brown & Co. covered
nearly - per cent If the trading in
the s. nsat ional week END session of
the stDc'- market. and it was said BY
a member Of the firm today that de-
livery had made one only 217,000 of
the more than 100000 shares handled.
How many thousand shares represent
the dealings of customers and how
many were carried on the firms ac-
count. it was impossible to learn. A
definite statement of the affairs of
the suspended house was promised
this afternoon, but f. f. Buchanan, a
,.t,,a, 1nfn hot hn
desired further to consult with friends
before making an authoritative an
nouncement The afternoon was filled
with rumorS as to various outside
sources that may have been respon-
sible for the course of the firm in Sat
urday's market, when the total sales
recorded on the floor of the exchange
for the two hours of trading amount
ed to more than 100000 shares as
against one third of a million during
the full five hours session of Monday,
but most of these were dissipated.
Mr. Buchanan himself announced posi-
lively that the firm had had no rela-
tions whatever with Thomas w. Law
son.
Late tonight Mr.. Buchanan gave out
the following statement:
Il have been trying all this afth'-
noon and this evening to get some
thing definite from our office but the
detail is so voluminuous that some
time will be required to arrive at &C
curate figures.
Il expect to have something tomor-
row in regard to our early resump-
ton. In the meantime | wish you to
deny published rumors that we have
been doing business for Thomas w.
Lawson, D. G. Reed or some other
gentlemen whose names have been
mentioned in connection with our If
fairs | hope to make a full and sat-
isfactory explanation of our position
very soon.
so far as | am able to see there IS
no immediate cause for apprehension
over our temporary embarrassment
which is due more to technical than
general causes.
1t was stated tonight that the no.
tice served by bankers that they would
not for the present continue the Ger
tification of the firms checks, pre-
cepitated the crisis.
1t was also said that out OF the maze
of Saturdays buying and selling the
firms defaulted deliveries amounted to
between 125, 900 and 10000 shares.
The difference between these figures,
the 277 900 shares delivered yesterday
and tn more than 100000 traded in
was said to have been absorbed by the
firm itself.
Announcement was made on the
Stock Exchange at 1.35 p. NJ, when the
market was ranging from one to three
points higher than the closing of yes
terday There mad been heavy buying
during the morning hours presumably
on the part of brokers attempting to
fill the uncovered orders of Saturday
and for a time prices We're made.
The market closed heavy and I'M
easy, however at a decline.
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 had branch houses in Chicago.
Cleveland. Buffalo, Erie, Pennsylvania
and Toranto. In this city, they main
tanned expensive branch offices in four
of the fashionable hotels and at two
uptown addresses. Their principal Of
flee was at 80 Broad street. Within
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