New-York tribune., 1908-08-28
BROWN FIRM BANKRUPT
PETITION FILED IN COURT.
Receiuer Likely To Be Appointed to
Take affairs from assignee.

A., invoIuntary petition in bankruptcy was filed
yesterday in the United States District Court
aea,nst the firm of A. o. Brown & Co by House,
rTTossman & Vorhaus of No. 115 Broadway, repre-
..r,i1g creditors with claims aggregating $500 600
against the failed firm. Judge Holt was out of the
city Yesterday but il is expected that he will ap
,ont receiver for the firm to-day. The petitioners
q, Yesterdays proceedings were Frank V Strauss,
With q claim of s2e2l5 on open account and for
danages and breach Of contract. Frank V. Strauss
& Co with claim of s4es for advertising services
rendered and Leo Won Raven, with a claim of
.sa open account, and damages for breach of
contract
The petition alleged that the firm was insolvent
owing TO having made assignment John
" Rhoades. Moses II. Grossrnan. of the law firm
Of House. Grossman & Vorhaus. said that the oh
iect in fling the petition in bankruptcy was to Sc
cure investigation leading up to the assignment
Of A. o. Brown & Co. and also that the assets of
the firm might be conserved by placing them in the
hands Of the court.
The appointment of a receiver will of course take
the affairs of the firm OF the hands of ] w
Rhoades, the assignee and his attorney Dix w
Noel The former yesterday engaged an expert ac-
countant take charge of the work of straighten-
ing out the firms books. This is expected 10 take
some time and it will be several days at least il
is said. before statement Of the assets and abi1i
Ties he given out
The special committee of five spponted- nv Pres
ident Thomas of the Stock Exchange TO investigate
last Saturdays stock transactions held another
kent
secret- All that became known was that E Z.
Buchanan, member of failed firm and 2 rem
resentative OF Trippe Co. appeared before the
committee and examined in relation to Sat
urdays transac ctions. AS a great many brokers and
their employees will have to lie examined. as we'll
IS their books and accounts, is expected that
the committees investigation will cover a period
of several weeks
The appearance Of Trippe & Co.'S representative
before the committee yesterday, is understood,
n f. tho oE1a m 1Tad EE1 of
Canadian Pacific stock which according to
statement given out by z. F. Buchanan
Wednesday night. had been delivered 70 Trippe &
Co. by A O. Brown & Co. who had received it
from another firm. but through oversight
the part of their clerk had given no check in pay
nent. The name Of the firm who delivered the
stock A O. Brown & Co. did not come out yes
terday. but it learned that the firm of Boody
6 Mcclellan. of No III Broadway. had also deliv-
cred some stock. 20 the Brown firm on Saturday
for which they did not receive a check.
The amount involved in this transaction was
s4ooo, and it reported that Boody & Mcclellan
had threatened bring criminal proceedings
against A O Brown & Co. if the money was not
forthcoming. This denied by Mr.. Boody, who
said:
When notified A. o. Brown & Co that We
had received the check were told that 1t
was an oversight on the part of the clerk owing
TO the excess of business which he had to handle.
and assured that soon as the assignee
had qualified we would Immediately receive a check
for fun amount. We satisfied with this
explanation, and do not purpose to make any
trouble
4 member of the firm will appear before the
committee 10 testify regard to this transaction
Wall Street yesterday regarded the failure OF
A q. Brown & Co. closed incident. so Tar as
lis bearing upon the financial situation as a whole
concerned. although ii is rather expected that
here will he some sensational developments in
connection with the firms transactions before its
affairs are finally wound up.