The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-08-25

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DC pfd. 2sle W. U. Tele.. S5t.; Utah,
NEW YORK, Aug. 25.-Daniel C.
Reid. the Office boy who became a
multi-millionaire and bought control
I or the ftUck fsfaud rafffoatIEsy eIn,
is the man who was responsible for
the wild trading in Wall-st. Saturday,
according TO a member OF the New
York stock exchange, who has been
! investigating the queer transactions
made by the firm OF A. o. Brown a.
| Co. on that day.
fhomHs W lawson claims credit
| for the transaction, but It was said in
Wall.st today. that Mr. Reid and the
Standard OIL Co. party alone had a
hand IN the business.
No official confirmation could be
had OF the report that was current in
Wall-st.. and which was generally be-
lieved 10 be true.
According TO this story, Mr.. Reid
has been selling stocks short for sew
eral weeks, believing there would be
a collapse In the market Il. ii. Har-
riman and other Standard Oil inter
ests have been watching Reid careful
| ly and marking up prices on him.
| Last week he Is understood TO have
| found himself short OF $780, 900 shares
| OF stock which he was unable 10 COW
er, except Al q terrific loss. Most OF his
| transactions had been put through the
exchange by his personal broker A.
w. Jackson, who IS the son of one or
the leading attorneys for the Rock
Island system. In his dilemma Reid,
| called the father of Mr.. Jackson 10
| New York last week and according TO
this remarkable report. had him pre-
| pare receivership papers for the ROCK
Island system. These were 70 have
been filed with the courts last Friday
and Hartman, learning the facts, no
tiled Reid chat II he did so. the stock
marker would be opened up ten points
the following morning and every dol
lar OF Reds personal fortune wiped
| nut.
Asks Private Settlement.
| Alarmed at this threat. Reid is said
10 have asked for private settlement.
| ne has Dttu maj 90
a bandit or the last two years and
MIR. Hartman was In no humor TO
grant terms AT this junction, John D..
Rockefeller is said 10 have been APP
pealed 10 by Reid.
| MIR. Rockefeller consented 10 let
! MIR. Ruiti have SEQ GOA shares of stock
with which 10 cover his short con-
tracts. In order To disguise the
source OF this stock, IL was agreed. so
the story goes, that Rockefeller should
deliver his stock through A. l.. Brown
& Co, with which firm he has been
doing for months an extensive ousi-
ness. According 10 the agreement
Reid posted his brokers on the floor
to purchase certain blocks OF STOCK
which were TO be offered.
Under the rules OF the New York
stock exchange such a piece OF busi-
ness is entirely legitimate. The sales
and purchases were genuine and A.
O Brown AZ Co declared today that
not a single wash" transaction was
made by them last Saturday. The
firm has opened its books to the stock
exchange showing that although near
" | 500 900 shares went through the
office Friday and Saturday. the full
commission of $3.50 per 100 shares
was received by the firm
II IL is true, as this report suggests,
that the Standard OIL people have dis
posed OF 100000 shares OF various
| stocks, there Is no danger OF any Wild
advance in the market.
Friday and Saturday the full com
mission OF $3.50 per 100 shares was
received by the firm.
The commission alone received by
the firm for those two days amounted
10 siS7 500. One significant fact that
seems 10 bear out this report Is that.
| although deliveries were slow yes
terday By Brown and Co, the firm was
able in every case Of a dispute TO put
up certified checks in place o. the
stocks.
The committee OF Ave appointed by
President X. II. Thomas yesterday ~
Investigate the business had not MADE
its report at late hour today.
About noon, fine oroers CAME into
the market, largely for the account oil
brokers who had been unable tn get
deliveries on stocks purchased Satur
day-f his eaased an advance Of three
! rryfrrtv- -SH,eltiHg-put- Southern Ia
enc 10 n new HlSh it'C'N -
vanced Union Pacific to los.
The immediate effect of the announce
ment or A. O. Brown & Co.'S fail'ir'
was much less violent than m'gh'
have been expected in view ci the
large amount OF stocks owing by thar
frm TO other members OF the stock
exchange
Prices vacilsted rapidly on suo
den Increase In volume OF ttansac
tions. but there was no very pro
nounced tendeRy to their movements
-@sfnr-tcchff4ef,l- .ffeetEtg--tn-- leaYs
those houses short of stocks TO whor
the insoivent firm had failed To MAKE
deliveries Buying in of such Stocks
would be expected. under normal con
ditions. 10 cause an advance In prices
but the street is SO \bewildered by th'
\ occurrences OF -tite-irst- few-days anl
go uncertain as tn ramIfications of th,
failure that good deal OF selling ap
parently met the buying in OF stocks
for account OF the failed firm.
Reported for The times by IIaydea