New-York tribune., 1908-09-26
BROWN PARTNERS HELD
FIVE OF THEM ARRESTED.
Rrokers Charged scith Larceny of
$500 Worth of Stock.

rive Of the partners Of the suspended Stock Ex-
,snge firm of A o Brown & Co. arrested
,srdav on warrants charging them with grand
oenv as they were leaving the Federal Building
-. -bev had testified at the bankruptcy pro-
s,,ee against the firm The FIVE prisoners-AI-
- n Brown. Lewis C. Young, Edward F Buch-
.sn W Rhea Whitman and Samuel c. Brown
g. taken 10 headquarters by the four Central
,sFos detectives. and by order Of Deputy Commis-
.1o,sr woods were photographed and measured.
The finger lnni'IlhIs Oh each PiiSoNer were aIso
taken
RON Police Headquarters they were taken to the
,-,bs r7oce court. where each released IN
,sWo hail for examination October 5. Bail was
rroH,ptly furnished
Edward Lauterbach, counsel for the firm. who
- n once Informed OF the arrest Of his clients
,-ried 10 headquarters with ex-Assistant District
Attorney George E. SchurTnan and protested vigor-
s,,. but without avail, against the photographing
,,5 measuring of the five prisoners. The lawyers
hsn rushed to the Tombs police court and i'm
,1ored Magistrate Finn to stop the police from
enisling the work Of photographing and measuring
,be prisoners. but the magistrate said he was
,owerless 10 intervene He agreed with Mr.. Lau-
+e-bach that the action Of the police was an out
rage.
g Lee stout. the remaining member OF the firm.
. hose arrest was also called for in the warrants
mas not appre eheuded he IS i'll in a hospital
bloomfield. y J. The detectives who made the
rrss+ were at the hearing in the Federal Building
hu- did not seize the five until they had left
s.deraI territory. a @. Brown extremely
,ous when arrested, but the other partners
NAMED composed. especially Mr. Buchanan who
..en,ed 10 treat the arrest lightly The prisoners
we're not handcufec
The complaint which the members OF the firm
.ere arrested was made by Miss Helen s. Aber-
,ethy Of No 2o5 East 18th street. All are charged
with the larceny of twenty shares Of Missouri
Kansas & Texas Railway common stock valued
,tout $500 and twenty-five shares Of United States
Thu
Legged 10 have occurred on or about August ..
IN the complaint Miss Abernethy charges that she
bougbt the stock on August s. and when she
10 the country for vacation she left il with the
srn for safe keeping. A few days before August
Ok she alleges that she to the brokerage Office
and asked for the return Of the stock, and re-
cefved no satisfactory answer. On August % she
saws that she went again. and also August q.
On the latter date. when she received word. she
consrated with her lawyer. and it learned.
+be con7plsint saws that the stock was not in the
rossession Of the receivers or in the offices OF the
company.
Miss Abernethy not in the courtroom when
the case was called but was represented by Rastus
s Ransom and " c. Rosenberg, ot the firm OF
House Crossnnan & Eorhaus-
MAGISTRATE Finn commented that there only
five prisoners before him. whereas the names Of six
were mentioned in the complaint. Mr.. Lauterbach
said:
The other person mentioned in the complaint
G Lee Stout is at present in hospital in New
Jersey we win give hail for him. also. II he is
vel enough viii have him present when the
case Is set for examination
Magistrate Finn then fixed bail at 5000 each. and
the bonds were furnished By James R. Kingsley.
Representing the Fidelity and Deposit Company. Of
Maryland
When asked late last night II he had anything
10 say in regard To the arrest Of himself and his
partners Mr Buchanan said:
oh 10. nothing particular. OF course,
not guilty Of the charge, and I satisfied
seriously believes that are Mrs. Ahernathy is
not known 70 any member of our firm. she
appears TO have been a customer dealing through
OF our branch offices.
We had no notice Of her complaint or OF any
grounds for any complaint. We viii. OF course,
look up the account our books soon pos
sible and are sure that the securities referred
be properly accounted for
Al departments Of firm were greatly
rushed during the last few days OF its existence.
and it natural that IL was impossible to avoid
errors; bur I satisfied that when every
thing is figured u It VIII unquestionably be shown
that all OF affairs were legally and fairly
conducted
The hearing in the bankruptcy proceedings, which
continued yesterday before United States Com
missioner Alexander in the Federal Building.
largely given over, like its predecessors. 70 an at
tempt find present whereabouts of 1.299 bonds
OF the Whitney Company, which are believed TO
have been in the possession OF the firm shortly be-
fore the failure.
Nj. Whitman, who had charge Of the firms
books. submitted long statement in regard to the
transactions il which these bonds figured.
in brief. il was forth that 2.161 Whitney Com
psny bonds had been in the possession Of A o.
Brown & Co. from time to time, that number being
reduced TO 1890 in April, 1907 and TO 1923 IN No
, Fenoer, 1877. In March April last there were
4Zs bonds hand. and OF that number 1,235 Of
these were delivered Mrs. Minnie E. Young and
deposited by her IN the Standard Safe Deposit
CoHpanys vault Fifty-eight bonds were delivered
10 the receiver, the other six unaccounted for, IL
was explained having been lost.
jackson ". Rose, who the FIRMS cashier at
Tie TINE Of the failure examined in regard 10
certain large debit balances Among those which
MT whitman said appeared TO be N g" was one
against G. / Whitney for $4,000; another against
himself for 4,0e0; stock special account for
sshus9 IS. D. r. Acct " for S2is, $50 p; account
No 3d. $4,000, and others
debit balance found against the United
Aaecr1csl Manufacturing Company of which Mr.
buchanan president. for S4l. .129 9s. Mr.. Buch-
snan said that there machinery valued at $4,000
or sSe0 IN the plant.
The hearing was then adjourned until Monday
morning