Los Angeles herald., 1908-08-26
BIG NEW YORK
BROKERS' FIRM
GOES TO WALL
A. o. BROWN & CO. SUSPEND
ON EXCHANGE
INVESTIGATION OF STOCK DEALS
LEADS TO FAILURE
Remarkable Transactions of Last Sat-
urday Explained Under Probing,
and Crash of One of Largest
Concerns Follows
BY Associated Press.

BY Associated Press
AT EW YORK, Aug. 25.-The failure of
III the big brokerage firm Of A. o..
IN Brown g. Co. for a sum possibly esti-
mated as running well above $1,000
900. sent a nervous thrill through the stock
market today. Coming as a climax to the
bewildering trading in last Saturdays mar
Ixet the suspension created extraordinary
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 session 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 into the
affair as a result of the extensive or
ders scattered through commission
houses during Saturdays spectacular
operations.
The transactions Of A. o. Brown &
Co. covered nearly per cent of the
trading in the sensational weekend
session of the stock market, and 1t was
stated officially by a member OF the
firm today that the delivery had Dee~
made on only 275,000 of the more than
ZOO. 900 shares handled. How many of
the outstanding shares represent tne
dealings of customers and how many
were carried on the firms account II
was impossible to learn.
Statement Postponed
A definite statement of the affairs OF
the suspended house was promised at
5 O'Clock this afternoon by e.. r.
Buchanan, a managing partner, but at
6 o'clock Mr.. Buchanan stated that he
desired to consult further with friends
before making an authoritative an
nouncement.
The afternoon was filled with rumors
as to various outside sources that may
have been responsible for the course of
the firm In Saturdays market 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 million during
the full five hours session of Monday,
but most of these rumors were dissi-
pated. Mr.. Buchanan himself an
nounced positively that the firm had
had no relations whatever with Thomas
w. Lawson.
Announcement Of the failure was
made on the stock exchange at 1913
p. M, when the market was ranging
from 1 to points higher than the
closing of yesterday. There had been
heavy buying during the morning
hours presumably on the part or the
brokers' attempt to fill the uncovered
orders of Saturday, and for a time
prices were maintained. The market
closed heavy and uneasy however, at
decline.
In Five Exchanges
A. o. Brown & Co. were members of
the New York stock exchange, New
York cotton exchange, Chicago stock
exchange Chicago board of trade and
the Cleveland stock exchange. They
had branch houses in Chicago Cleve-
land. Buffalo, Erie, Pa, and Toronto.
In this city they maintained expensive
branch offices in four of the fashion,
able hotels, and at two uptown adj
dresses. Their principal office was at
80 Broad street, a 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 members of the firm included
Albert o. Brown, Lewis Ginter Young,
G.. Lee Stout, Edward F. Buchanan,
Samuel G. Brown and w. Rhea Whit
man.
Private wires We're maintained to all
principal cities.
The extensive trading Of the firm, 1t
is believed, was confined largely to
New York, despite the fact that the
house has made a speciality of western
business.
Although organized in the latter part
Continued on Page Two)