The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-25
WALL STREET FAILURE.
One Of the Largest Brokerage Houses
+ Announces Suspension.

| view fork, aug. ga. o. Brown
| Geo.. one of the largest brokerage
houses in this city, announced their
suspension on the stock exchange this
afternoon The transactions of the
firm in the remarkable stock market
OF last saturday have been under in
vestigation by the authorities of the
stock exchange and today 1t was an
nounced that transactions had been
made for the FIRMS account under the
rule which provides that where a firm
is unable to deliver stock sold to an
other broker the purchaser may buy
in the stock at the expense of the firm
failing to make the delivery.
d. w. Noel has been named as as
signee for A. o. Brown & Co. No
statement of assets and liabilities is
available as yet, but it is presumed
that the figures will be very large as
had heavy interest in the market. A
representative of the firm of A. O.
Brown Co.. gave out this statement:
The affairs of the firm are badly
| tangled and 1t was felt necessary to
| suspend in order to straighten them
| out"
The effect of the suspension upon the
| stock market was not so violent as
| anticipated by those who know how
large an amount of stocks A. o. Brown
| q Co., owed to other firms. The volume
| of trading increased rapidly but prices
| vacillated and there was no general
movement in either direction. Houses
| to whom the suspended firm had failed
to deliver stocks sold were left short
of stocks to fill their own contracts
and the buying in of such stocks to
satisfy their contracts ordinarily would
cause an advance in prices. In this
case there was apparently consider
able selling of stocks because of the
unusual occurrences of the past few
days and the uncertainty as to what
might be Involved in the suspension
At the height of the boom market OF
several years ago, A. o. Brown & Co.,
been larger than any other brokerage
house. At one time. there were five
branch offices in this city and many
others throughout the country, but af-
ter the panic last fall many of the
out of town branches were closed. AT
the present time. however. the firm has
offices in Buffalo, Chicago. Cleveland
Detroit, Erie. Utica, Toronto and Pat
erson. N. ]. The firm was organized
in 1902. Its members are A. o. Brown
C. Lee Stout, E. F. Buchanan. Samuel
c. Brown and w. Rhea Whitman.
II F. F. Buchanan, q member of the sus-
pended firm today denied that the
heavy operations on the exchange Sat
urday were for the account of Thomas
w. Lawson, of Boston.
No estimate of the magnitude of the
failure had been made, but the firms
| business was SO extensive 1t is DeneV-
ed the naDlllt1eS VIII amount 10 SSN
eral million dollars. A member of the
firm said hope was entertained that the
debts can be paid in full and resump-
ton of business arranged.
i F. r. Buchanan. a member OF A. o.
Brown & Co.. made a statement in re-
gard to the FIRMS position before going
into conference with the assignee. He
said he could give no idea of the La
bilities or assets, but the failure was
not a serious one and the firm hoped
to pay 100 cents on the dollar, and re-
sumo operations before long. Mr.. Blu
| chanan stated that of the enormous
| business done by the firm Saturday,
shares No deliveries were made today.
leaving a total of between 100000 and
SOC, 600 shares undelivered-
Notice Posted I'm Chicago.
Chicago, Aug. 25.-At 12:45 this af-
ternoon, half an hour before the close
| of the session of the board of trade,
| notice was posted to close all trades
| with A. o. Brown & Co. whose fail
ure was announced from New York.
| apparent in the trend of prices. A. o.
Brown & Co. have Chicago office at
lis Adams street and branch of this
| office at Jackson boulevard.
| D. E. Noyes, manager of the local
| branch, stated that the firms grain
business on the board of trade was
small. Considering the season how
ever he said the firm was doing
| good business in stocks. Pursuant to
| orders from the New York house Mr.
| Noyes notified customers of the situa-
ton and the handsome suite in the
Commercial National bank building
| was soon filled with an excited crowd
| demanding information. Mr.. Noyes
pleaded ignorance save for the bare
| oct of ha Fol