The Montgomery advertiser., 1908-08-26
BIG FIRM COLLAPSES
FAILURE of A. o. BROWN & co. Is
ANNOUNCED.
Heavy Operators on New York Stock
Exchange and Leaders in the
Trading Saturday-May
Resume Business.

New York. Aug. 25.--The failure Of
the big brokerage firm of A o. Brown
ana Co. for a sum popularity estimat-
ed as running well above $1,000,000
sent a nervous thrill through the stock
market today.
Coming as a climax to the bewil-
derinR trading in last Saturdays
market the suspension created an ex-
IN aordinary degree Of public interest
but was looked upon by high stock
exchange interests as Offering an early
solution OF the tangle growing out
Of the most remarkable two hours ses-
sion the New York stock exchange
has known in many years
While there was no question in Wall
street this afternoon that the situation
created by today's failure could easily
be taken care of, there was distinctly
a feeling Of apprehension lest other
firms might, unwittingly be drawn in
to the AFFAIR as a result of the extern
slve orders scattered through COM
mission houses during Saturdays
spectacular proceedings.
The transactions of A. o Brown and
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 Arm today that delivery had been
L1duE On ONly GttbVOO Oh the HlOTG Iudn
700, 900 shares handled. How many of
the outstanding shares represent the
dealings of customers and how many
were carried on the firms account 1t
was impossible to learn.
A definite statement of the affairs
of the suspended house was promised
at o'clock this afternoon by e. F..
Buchanan, a managing partner. but
at o'clock Mr.. Buchanan stated that
u froA ~ 0Yalf =
friends before making an authoritative
announcement
Lawson Not in It.
Late tonight, Mr.. Buchanan gave out
the following statement:
i have been trying all this after
noon and this evening to get some
thing definite from our offices but
the detail is so voluminous that some
time will be required to arrive at &C
curate figures.
II expect to have something to-
morrow in regard to our early ra-
sumption. In the meantime I wish you
to deny published rumors that we
have been doing business for Mr..
Thomas w. Lawson Mr.. D. G. Reid
or some of the other gentlemen VIII se
names have been mentioned in con-
nection with our AFFAIRS. I hope to
make a full and satisfactory explana-
ton of our position very soon.
so far as l am able to see. there is
no immediate cause for apprehension
over our temporary embarrassment.
which is due more to technical than
general causes"
Can you not say definitely what
caused the suspension?" Mr. Buchan-
an was asked.
Not at this time" he replied.
Have you heard the report that
members of the firm have been specu-
lating; that the house was short of
the market and caused the furry on
Saturday in an attempt to cover up
that shortage2"
Yes; but 1t Is false"
Did some customers dealings then
cause the failure7"
IT can say nothing further tonight.
Everything will be cleared up in
time"
1t was stated tonight that the notice
served today by bankers that they
would not for the present continue the
certlf1cation of the firms checks preci-
plated the crisis.
1t was also stated that out of the
maze of Saturdays buying and SELL
Ing the firms defaulted deliveries
amounted to between $4,000 and 100.
900 shares. The difference between
these figures. the 277,O00 shares de-
livered yesterday and the more than
100000 traded in was said to have
been absorbed by the firm itself.
Many RumOrs AhOat.
The afternoon was filled with ru-
more as 10 various outside sources that
may have been responsible for the
course of the firm in Saturdays mar
ket when the total sales recorded on
the floor of the exchange for the two
hours trading amounted to more thah
100000 shares as against one third
Of a million during the full i've hourl