Evening star., 1909-05-18
TRACY & CO., BROKERS, FAIL
HAVE LIABILITIES OF $1,25o, 900
WITH ASSETS $3.50, 900.
Receiver Named for Stock Exchange
Firm-Taxicab Venture
Cause Of Trouble.

NEW YORK. May 1s.-An involuntary
petition In bankruptcy was filed yesterday
after the stock exchange closed against
the stock exchange firm of Tracy s. Co. OF
40 Wall street
Immediately after the news came from
the Federal building William w. Tracy
the only partner In town, went to the of
flee of the Secretary of the stock ex-
change and after conference behind
closed doors slipped out Of a side entrance
to avoid the reporters.
Judge Hough appointed f. G. Benedict
of Robinson Biddle & Benedict receiver
He will qualify today. giving bond OF
$4,000
Liabilities Of 81, 100000.
The creditors on whose petition the re-
ceiver in bankruptcy was appointed, rep
resented less than $1,000 OF indebtedness
all money received from them by the firm
but 1t was estimated in the petition that
the liabilities are 100000 and the as
sets $25OOOO.
Last night Attorney Hershfield Of Hays
Hershfield & Wolf, counsel for the re.
ceiver, added something to the figures
assets at $350.OO0. He could say little
about the firms affairs. except that he
understood that the trouble was caused by
outside business interests Of the partners
rather than stock exchange transactions
Attorney Hirshf1eld said that the house
had no outstanding liabilities on the ex-
change. He added that the firms bust
ness had fallen to small proportions re-
Gently.
In this connection it was learned that
there has been what practically amounted
to run on the Arm for the last few
weeks, and as the uneasiness among the
customers grew the house found dlf11cuity
In meeting the demands for balances due
A considerable proportion of the firms
clientele were young men with speculative
tendencies, and their accounts had been
active. Trading in grain was one OF the
firms specialties, carried on through It's
Chicago office. and 1t is said that many
OF its customers made profits in the recent
bull movement.
Interested in Taxicab Stock.
The outside interests referred to by the
attorney for the receiver are generally
believed to be the taxicab company pro-
motions, in which Mr.. Tracy was active.
The firm was largely interested in the
promotion of the New York Taxicab
Company, and had taxicab interests in
other cities. Up to a few months ago
Mr.. Tracy was treasurer Of the New
York Taxicab Company, but after the
strike of chauffeurs. which proved costly
to the concern, he resigned.
Tracy & Co., which was originally
Chicago house, has large number OF
branches, and it has always been more
or less Of a mystery in the street where
its business came from.
The partners are William w. Tracy. the
senior member; Frederick w. Parker, the
stock exchange member. who Is In Eu-
rope. and Robert D. Covington. Mr..
Tracy, who had been the cashier of the
First National Bank of Springfield, III,
started the bushes In Chicago In 1888.
The New York Office was opened as a
branch in 1900, and became the principal
office in 1904. The present firm was or
ganized in November. 1905, when Fred
erick w. Parker became partner.
He was admitted to the stock exchange
in 1908, taking over the seat of the senior
partner. who had joined the exchange In
iYOs. Mr.. Tracy at that time spent most
OF his time in Chicago. where the firm
had three Offices Other branches were
in ST. Louis, Detroit, New Haven, Mil
waukee and Louisville. Ky.