Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-26
QUEER STOCK PRACTICES
Partners Said to Have Been Un-
aware of Irregularities.
YOUNG LAWSON IS BITTER
Claims From Customers Pouring in,
Some Demanding Stocks That
Have Vanished.

NEW 4ORh, April SJ-lnc OdHAiHs
of the failed firm of T. A.
Mcintyre & Co. was computed by Irving
L. Ernst attorney for the receiver. today
at $575.COo It is abundantly secured. and
because Of the recent appreciation in
stocks 1t is expected that a fair equity
in the loans may be secured for the cred
itors. Apart from this equity all that the
receiver and his attorney have secured
possession Of is a miscellaneous assort-
gate some $4,000 at present market
value. All of the hizher-class collateral
had been hypothecated and the prospects
are not bright for the payment OF any
large percentage of the creditors claims
Including the banking indebtedness. the
liabilities will run far in excess of the
100000 estimate made on Friday. Prob
ably they will amount to $1,OO0OO0 In
claims to customers alone, but not even
an approximate estimate was attempted
by the receiver today. Claims were SUBJ
mitted to him in continuous succession
by personal interview and messenger. and
he received q number OF kilograms and
letters from customers Of the main and
branch Offices. Many of the customers
firm had purchased for them or was
carrying for their account.
Bucketing Charge Denied.
It became known that the firm in many
cases had gone short Of stocks az it's
customers went long Of them From this
fact there arose a report that the firm
had bucketed orders given by customers
tive Of the firm denied fatty that there
was truth in the stor'cs Of bucketing
orders. On the other hand he admitted
that the firm had committed a technical
violation Of stock exchange rules In
going short of the market In the panic
weeks when money rates were very high.
In the expectation of buying In stocks for
customers subsequently. This resource
OF the panic days subsequently turned
out very expensive. for when stocks ad-
vanced one customer after another de-
manded his stocks or his balance, and
after block of securities to meet its own
short commitments or the claims OF
customers.
Apparently some one of the partners,
among them George c. Ryan of Syracuse,
was ignorant Of the peculiar methods OF
conducting transactions until matters
came to crisis this week. The assets
of the firm had by this time become
nearly exhausted and the partners were
called together and asked to raise addi-
tional capital. After bitter alteration
some Of the partners absolutely refused
to go further and demanded and insisted
on an immediate suspension. John q.
Mcintyre. Thomas A. McIntyre's brother
Joined with them in signing the assign
ment, because he was the stock exchange
CURED a heavy individual liability on the
firms contracts.
Cotton Not to Blame.
Theodore Price, who was said Thurs
day to have got the firm into. his recent
deal in cotton. is a creditor. not a debtor,
of the firm. The amount of his claim is
small and 1t was said that his operations
through the firm were by no means large
a small measure responsible for the firm s
predicament. The Indebtedness to cotton
exchange brokers will be about balanced
by the value Of the exchange seat. The
stock exchange Indebtedness, q repre-
sentative Of the firm said. would also be
under the value of the stock exchange
membership. The amount Of stock bought
in for the firm under the rule. he said.
was just about 25.OOO shares. and the
average loss points, or total of $50. .OCO.
Friction between Arthur A. Peck, the
assignee, and C.. c. Birmingham, the re-
ceiver. developed in the course of the
day. 1t appeared that Mr.. Peck had been
appointed assignee of a firm of five men,
bers. which Is the composition of the
Boston firm. while Mr. Birmingham.
ruptcy superseded the assignment. was
appointed over the New York firm which
has seven members.
In the afternoon Wellman. Couch &
Smyth. as attorneys for Mr. Peck. went
before Judge Hough in the United States
district court and settled the contro-
versy by securing the appointment of
Mr.. Peck as co-receiver with Mr..
Birmingham.
The application for his appointment was
made on the petition Of three small credi-
tors, James d. Shields, Charles A. Hubbs
and William ]. White. The attorneys rep
resented to the court that Mr.. Peck was
thoroughly familiar with the firms busi-
ness. and that they represented Syracuse
creditors. in addition to those named
with aggregate claims of more than $500.
600. The Syracuse branch did more bust
ness than any of the other branches and
the losses are heavier there than in any
other city. Mr.. Peck was connected with
the Syracuse branch.
Young Lawson's Message.
Neither r. A. Mcintyre nor any of the
other partners was in the office today
Mr.. Mcintyre was represented as in a
condition of complete collapse in his
apartments. and denied himself to all
callers except a few intimates. Many
friends sent him messages of sympathy
and proffers of assistance. but one in.
teresting telegram was Of an entirely diff
ferent tenor. This was from Arnold Law
son, who married Lucy Mitchell, Mr.. Nc
Intyre's step-daughter. 1t read:
Congratulations on your failure. This
is the beginning of the end"
These words set at rest reports that
Mr.. McIntyre's relationship to the son
of Thomas W.. Lawson might result in
the restoration Of the firm through the
assistance of the Boston operator As
far as Mr.. Mcintyre himself was con-
cerned. 1t became known. he had no ex-
pectations of any friendliness from this
source. for at no time has any love been
lost between him and Arnold Lawson.
At the same time. Mr. McIntyre's friends
said the telegram struck as complete
surprise. He did not expect such a tele-
gram from any one.
proy,oead SwAd3eh Churrh Hara