The Montgomery advertiser., 1908-08-27
PROBING COMMITTEE
STOCK EXCHANGE TO INVESTIGATE
 A. O. BROWN & co.
Not Believed That Other New York Firms VIII Be Hurt By The Big
 wall Street Failure.


 New York, Aug. 26--R. H. Thomas President of the New York Stock Ex- change, today appointed committee of five members of the exchange to fn- ~estigate the heavy sales of stock on Saturday last. when. 1t Is alleged matched" sales were made.
 The committee is composed of ernest Groesbeck, Chairman. Albert r. soou, hart. H. K Pomeroy. c. M. Maurice ana R. P, Doremus. The committee began its work today.
 The work of clearing up the tangled affairs of the stock exchange firm or A o. Brown and Company, whose sus- pension was announced yesterday after one of the most extraordinary bursts of speculation ever known on the New York Exchange. began today.
 The governors of the stock exchange plan to make the investigation a very thorough one. So involved are the ac- counts of the suspended firm that it is believed by members of the ex- change that several days work will be required before the assignee can esti- mate the liabilities and assets. These accounts were greatly complicated by tho buying for the account of the sus- pended firm of stock which they had sold to their brokers and were unable to deliver. The losses which the firm suffered under this process will swell its total liabilities and add greatly to the work of the assignee.
 The stock market opened today with a small volume of trading and with prices only fractionally changed from those of the closing yesterday. The had much less effect on the market than might have been anticipated in view of the magnitude of the firms transactions. There was a feeling of uneasiness. however. among the traders today who fear that the real circum- stances back of the Brown suspension and the transactions of Saturday are yet to be ascertained
 The offices of A. o. Brown and Com pany were closed today and 1t was stated that no member of the firm was to be seen.
 J. W. Rhodes, the assignee. and his counsel, Richard W. Noel, were at work within the offices. going over the firms accounts. but would make no statement as to the condition in which they found the firms affairs.
 Reports were in circulation in the financiaI district today that an official of New York Trust Company shared in the speculation which swept A. O. Brown under. until he saw that the venture was about to result Jisastrious- ly and that the official then withdrew. The directors of the trust company were said to be in session today inquir- Ing into the conduct of their officials in connection with the suspended firm
 A statement was issued in behalf of A. O. Brown and Company today to the effect that the large number of shares of stock which that firm dealt in Satur- day were passed through the stock ex- change clearing house by other brok- CTS who were thereby required to affix the stamps demahded by the transfer tax law. This was in answer to a statement by State Comptroller Martin H. Giynn. that the records of his of- flee showed that A O Brown and Com pany had purchased but S. 900 worth of stamps during July and August which would not have been sufficient to cover the heavy transactions of Saturday.
 Suit was begun today against A. O. Brown and Company. the suspended brokers by George ". Benedict who claims he deposited $8,0o0 with the firm on August IF. James F. Grace. has aaso begun suit against the company to recover $5.000.