Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-08-26
BROKERS FAIL
FOR MILLION
DOLLARS
AFT FTERMATH OF
SENSATIONAL TRADING
Brown & Co.. Who Conducted
BewiIdering Campaign Satur-
day, Announce SuSpenSioni
Wall Street ears Worse,
IBy Morning journal special Leased wlrel

IBy Morning journal Special Leased Wirel
| New York, Aug. 25.-The failure of
| the big brokerage firm of A. o. Brown
& Co., for sum popularly estimated
as running well above ST 100000, sent
a nervous thrill through the stock
market today. Coming as a climax
to the bewidering trading in last Sat
urday's market, the suspension ere
atcd an extraordinary degree of pub
lie interest, but was looked upon by
high stock exchange interests as Of
| ferng an early solution of the tangle
| growing out of the most remarkable
| two hours session the New York stock
exchange has known in many years.
| While there was no indication in
Wall street this afternoon that the
situation created by todays failure
could not easily be taken care Of there
was distinctly a feeling of apprehen-
sion lest the other firms might uhwit-
tingly be drawn into the affair as a
result OF the extensive orders scatter
ed through commission houses during
| Saturdays spectacular proceedings.
The transactions Of A. o, Brown &
Co. covered nearly rs per cent Of the
trading in the sensational week end
session of the stock market, and 1t
was stated officially by Il member of
the firm today that the delivery had
| been made on only 275, 600 of the more
than 100000 shares handled How
many of the outstanding shares rep
resent the dealings of customers and
how many were carried on the firms
account it was impossible to learn
A definite statement of the al
of the suspended house was pronii "
at 5 O'clock this afternoon by E. N
Buchanan, managing partner, but Nh
6 O'clock Mr. Buchanan stated that l
desired to consult further with friends
before making an authoritative am
! nonhcemcnt.
The afternoon was filled with ru-
mors as to 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 of trading amounted to more
than 100000 shares, as against one
third of a million during the full FIVE
hours session of Monday, but most
of these rumors were dissipated. MIR.
Buchanan himself announced positivc-
ly that the firm had had no relations
whatever with Thomas Lawson.
Announcement of the failure was
made on the stock exchange at 1895
p M, when the market was ranging
from I to 3 points higher than the
closing of yesterday. There had been
heavy buying during the morning
hours, presumably on the part OF
brokers attempting TO fill the uncov-
cred orders of Saturday, and FOR u
time prices were maintained. The mar
ket closed heavy and easy however,
at a decline.
A. O. Brown e Co. were members
of the New York stock exchange, New
York cotton exchange, Chicago stock
exchange, Chicago board of trade
the Cleveland stock exchange They
had branch houses in Chicago, Cleve-
land, Buffalo, Erie and Toronto. In
this city they maintained expensive
branch Offices in four of the fashion
able hotels and at two uptown ad-
dresses. Their principal Office was at
80 Broad street, few doors from the
Stock Exchange building. Within the
last few months the firm had spent
$4,000 in refurnishing its Broad
street home.
The membership of the firm includ-
ed Albert o. Brown, Lewis Ginter
Young, Glcc Stout, Edward f. Blu
chanan. Samuel c. Brown and w
Rhea Whitman.
Private wires were maintained t.
all principal cities.
The extensive trading Of the firm
: It Is believed, was confined largely q
New York, despite the fact that the
house has made a specially of west
ern business. Although organized in
the latter part Of 1902. the firm had
come to take prominent part il
trading on the stock exchange floor
John w. Rhoades. cashier of thi
! firm, was named as assignee, With ID
w. Noel as counsel.
When the failure was announced q
member of the firm said that It's af-
4 iuliS were IN bduly ldnBlcu toHul
ton as the result of Saturdays trad
ing, and il was thought best to mak'
an assignment at once. 1t is under
stood that brokerage firms who were
awaiting the delivery of stock from
a. o. Brown & Co. became impatien
/. along toward noon today and sen
!. word that they would allow but few
] more hours of grace. All attempt
! to secure further delay were futile ant
the suspension followed.
( II was also said that the banks tha
: carried the accounts of the house de
clned today because OF the unsettled
= condition In the affairs OF the firm
+ further 70 certify any of It's checks
One OF the managers Of the house
7 when questioned as to this, dismissol
I the subject by saying the firm ha'
: asked for no eertlhcations. Less thar
a an hour before the suspension, an'
: when efforts were being made 10 stay'
y OF the delivery Of unpurchased stocks
n. = lrts.