The Birmingham age-herald., 1908-08-26
B|C BROKERAGE FIRM GOES UNDER Crash Comes As Climax to
 Saturdays Trading HOPEFUL OF PAYING DEBTS Members of the Firm of A. o. Brown G Co. Declare That Affairs Will
 Be Settled and Busi-
 ness Resumed.

New York, August 25.-The failure of the big brokerage firm of A. O. Brown & Co. for a sum popularly estimated ;.s running well above s1 ,OOo,O0 sent nerv- ous thrill through the stock market to- day. Coming as a climax to the bewil- dering trading in last Saturdays market, the suspension created an 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 ex- change has known in many years
 While there was no question in Wall street this afternoon that the situation created by todays failure could easily be taken care of, there was distinctly a feeling of apprehension lest firms might unwittingly be drawn into the affair as result of the extensive orders scattered through commission houses during Sat urday's spectacular proceedings.
 The transactions of A. O. Brown &. O. covered nearly 75 per cent of the trading in the sensational weekend ses- sion of the stock market, and it was stated officially by a member of the firm today that delivery had been made on only 277,000 of the more than 70O,00O shares handled. How many of the out standing shares represent the dealings of customers and how many were carried on the firms account it was impossible to learn. definite statement of the affairs of the suspended house was prom ised at o'clock this afternoon by E. F. Buchanan, a managing partner but at 6 o'clock Mir. Buchanan stated that he desired further time to consult with his friends before making an authoritative announcement
 Late tonight MT. Buchanan gave out the following statement;
 T have been trying all this afternoon and this evening to get something definite rom our ofnaa but the detail fs 60 s'o'- luminous that some lfn,e win be required to arrive at accurate figures.
 q expect to have something tomorrow in regard to our early resumption. In the meantime I wish you to deny pub lished rumors that we have been doing business for Thomas w. Lawson, D. G. Reid or some of the other gentlemen whose names have been mentioned in con- nection with our affairs I hope to make a full and satisfactory explanation of our position very soon.
 "So far as I am able to see, there is no immediate cause for apprehension over our temporary embarrassment, which is due more to technical than general causes"
 Less than an hour before the suspen- sion, and when efforts were being made to stave off the delivery of unpurchased stocks. the firm announced that it's busi- ness was proceeding in ordinary fashion, and that any suggestion as to It's financial standing was ridiculous.
 Friends of the members of the firm de- clared tonight that it's collapse was due entirely to the clogglng of its regular channels of business by the extraordi- nary Saturday trading.
 Albert O. Brown, head of the firm, was before the stock exchange governors Mon- day afternoon to explain tardiness of de- livery, and 1t was announced afterward that his explanation as to this feature of the trading had been accepted. It was further announced that the governors of the exchange would appoint committee of five to thoroughly inquire into Satur- days transactions. and means of restor- ing public confidence and punishng any members who had been guilty of trans gression of the rules. The personnel of this committee had not been announced when the failure of Brown & Co. became known, but 1t was said the events of tho day had in no way changed the purpose of the governors.