New-York tribune., 1908-08-27
Unfair, ,SAYSBR0WN co.
or fTElTENT on failure.
rbnge That the Firm Did Not
Hare adequate Chance to Recoup.

he firm S5,.sto,D4t on - tbaet,Nro Amerl-
Tobacco bonds which it offered as collateral
o+her hanks had refused 10 certify the firms
80 and 1t needed his amount Of money to
-, NJ, its contracts of saturday When the
- 1ras refused the firm threw up its hands
= informed the Stock Exchange authorities of
. :-ahiIitv TO continue It was said in some
,s-s Yesterday that when the banks dscov-
- that A o Brown & Co had been largely
-osnonsihle for the manipulation in Saturdays
-.-,srkahle market they decided then and there
= n,,t them out Of business a warning to
..bs-s similarly inclined Bankers said, how
er that no bank would. a rule. take such
large block of industrial securities as was offered
A. ,bis instance as collateral for q loan even
.ho,pb they were of the highest class, which
American Tobacco bonds are acknowledged TO be.
t7arlv this morning Mr. Buchanan, his as
ociates Mr. Brown and MIR. Young, being with
hin, in Nj Browns apartments in the Wal
dorf- Astoria gave out the following statement:
II, view of the conflicting rumors that are current
I uIsn Ju Ueny that our suspension was que IN any
- Ia the sIecuIations of any bank or trust
l'Sv officials any Otiiclals Of the Rock Island
,,1rlIpany. Lawson or any OF the gentlemen 50
S @ stones mat are likely renect upon innocent
parties. particularly when such stories have no
basis IL iacL VIII hot al thls bilt d dsSl ny
names OF OF our principals, as You VIII conceae
maj until the firms affairs are Strengthened out
such information must pe heid from every one Oul
ourselves A.. - ,,,, ,
sef were summoned the New York Stock t1H-
rnsnge in connection with the investigation being
rondIcTed into last Saturdays business. We We're
unaple s- ~ - - t1lG ln1 some of the aues-
mons were OF such q character that considered
III III 10 10 one hundred shares OF Canadian Pachc
which was rendered a our window on MONDAY
IRON flrrn which owed the stock, ana whlch
We owed another firm, according 10 the clearing
House tickets sent out as usual every morning TO
al the brokers the exchange, after the Clearing
House has inquired out the most con. Iie'u
Of clearing Ine business OF the preceding day Nj
Exchange, and was diligently husthnS around the
Street. with collateral under my arm, IN the en-
deavor 10 make loans sufficient to induce our banks
10 give US sufficient certihcaron TO handle the
enormous business we had TO put through during
Street. OF stock clerks received the Ger
1ifcate for hundred shares OF Canadian Pa
Us their check for the proceeds, which was depos-
9d IN bank M IN tae a5na Sy the special Stock Elk
change committee this afternoon great Importance
seemed 10 be placed upon the transaction because
our clerk did give check for the one nun
dred shares Of Canadian Pacifc when II was was
thrown his window After We were dismissed
from the Stock Exchange committee room iI tlls
afternoon inEestlsaleo liz, llS CSs, s an I7 80
explained that ne was aWIullE psZ any! lit i'i 80
The boy 10 call back for his check later Ohls Is q
very frequent occurrence in all brokers offices on
all very busy days, when cheek writers are heces-
that a member OF the firm which delivered the one
hundred shares Of Canadian Pacific TO US came a 40
his check He was told that were sorry that
he mad not brought the matter - attention
sr4iar as tbe firr5 was in the hands Of an assignee
md = LAWYER and that powerless TO cor
ciately introduced him the assignee and request,
ID the assignee 10 take up the case at once ana
! Was amused this afternoon to learn that legal
fr1111e5iafeiv for conversion The matter is, OF
course little Importance. but it is due the public
as well as ourselves to have such matters under
stood before they have an opportunity 10 reflect
discredit upon innocent people ana sur pp undue
apprehension regard the firms action and
present position. The firm which delivered the one
hundred shares Of Canadian Pacific accepted a re
ceipt for il after the assignment by a o. Brown &
co. The amount due viii, Of course, be taken care
of with the claims Of other creators: Inc STOCK
Exchange special Investigating committee appeared
highly indignant and angry because OF me P9t 4 %
swer offhand the questions put TO us -.
the secretary of the Stock Exchange:
IN connection with the Interview we had with
your committee to-day beg 10 say that inas-
questions without referring TO books, we shall
provided the assignee has no objection. in order
upon all the points in question ,-.. -r,,.
You asked me the cause OF the assignment me ne
our banks gtve US the usual daily certifcation
tsken Sv The ofHciais and members of the New
York Stock Exchange The firms position was
ilcstions. and would easily have avoided any
trouble had il received the fair treatment that nat
market became excited because OF the rush Of
brokers covering our contracts (Which the banks
ha5 refused 10 give US the usual facilities TO de
Hvere. We reported n the president Of the Stock
EaId SUSPEND Until matters could be adjusted
Al the loss sustained Is due TO the bidding up OF
fFfT IFaf We a'1F Wers to deiiveT Give S'-'-' "
our liabilities and assets, from what figures I
am able to ascertain. will not show very VIDE
gap
The committee of five which President Thomas
was authorized to appoint at an extraordinary
meeting Of the governing committee Of the ex-
change last Monday, for the purpose Of investi-
eating saturdays stock market transactions,
was named by him yesterday. as follows;
,s-vVzu ~
Charles W Maury, r. B. Doremus and Albert
z. Goodhart-
The statement given out at Albany by Martin
H GIvnn. the State Controller. that the firm Of
A o Brown &, Co. had purchased only $4,000
worth Of stock transfer tax stamps in July and
August. whereas, as they had traded in 10000
shares of stock Saturday, they should have
used $4,000 worth Of stamps on that day s
transactions alone TO comply with the require
-,entz Of the stock transfer tax law, caused con-
siderable comment in wall Street. Brokers said
that Mr. 6lynn did not understand the situation
which WAS that the firm had given out" the
orders IL other brokerage houses, who had pro
vided the necessary stamps and charged them
TO A O. Brown & Co The same explanation
was given out at the Offices of the failed firm
and by George w. Ely. secretary of the ex-
change
John " Rhoades. the assignee Of A o. Brown
& Co and his attorney, Dix w Noel, were
hard al work yesterday on the books of the firm
trying to get at an estimate or lis hapihues'
but owing to the extensive character or the
business which precipitated the failure. no state
ment would be possible for some days yet, MI
Noel said. II is generally believed, however as
stated in The Tribune yesterday that the Ia
bities viii be at least s2500ooo and may reach
100000
In banking circles ii was said that steps had
been taken IN r,reveut in so far as possible, a