The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1909-05-18
Tracy and Company Have Pc
tition in Involuntary Bank
ruptcy Filed
1Ax|CAB CONCERN IS CAUSE
OF THE GIGANTIC FAILURE
While They We're Members of the NV
York Stock Exchange and the Chi.
cago Board of Trade There Are No
Stock Obligations.

New York, May 18.-In the appoint
ment today Of receiver for Tracy &
Co., members of the New York stock
exchange .and the Chicago board of
trade, Wall street had a million dol
lar failure with an interesting varia-
tion from the usual. TaXicabs, not
stock manipulation or market condi-
tions, are said to be indirectly respon-
sible for the firms troubles. While
no announcement as to the exact cause
of the failure has been made, E. A.
Benedict, receiver, said last night that
he understood that money lost in
backing local taxicab concern fig
ured in the outside ventures. The
firm has no stock exchange obliga-
tions. The total liabilities are esti-
mated at $1,OOO,OOO, the assets at half
that amount. Both these sums are
approximated.
News of the firms failure came out
with the filing Of an involuntary petit
tion in bankruptcy in the United
States district court yesterday after
noon. but as it was rather late in the
day no official notice was received at
the stock exchange. Mr.. Benedict was
quickly named as receiver and gave
bond for $4,000.
There were only three petitioning
creditors. They are Henry r. Wood
ward, $500; William G. Austin, $1OO,
and William A. Scott, 1907.
The firm of Tracy & Co., was or
ganized in 1905. 1t consists of Will
liam w. Tracy, R. D Covington and
Frederick w. Parker. Mi. Parker was
the board member. Tracy and Coving-
ton were in conference with the re-
cetver in the afternoon but they de-
clined to make any statement. Mr..
Parker has been abroad for several
months.
Among stock exchange houses with
Chicago connections, the embarrass-
ment of the firm caused little surprise
The situation is regarded by friends
of Mr.. Tracy as a result, at least in
part, Of proposed taxicab legislation
pending before the local board of al
dermen. When a hearing was held
with regard to proposed legislation
some weeks ago, an attorney for taxi
cab interests announced to the COM
mitteemen of the board that any re-
duction in the rate of fare might mean
bankruptcy for some persons interest
ed. But the proposed bill was report
ed, though further consideration was
postponed.
AS no official notice was received,
the firm was not suspended from the
stock exchange yesterday aftelnoo
Besides the main New York Office
in Wall street, the firm maintained
local branches in West Thirty-third
street and at the Hotel Gotham. 1t
had other offices in Chicago, St. Louis,
Louisville, Ky, Milwaukee and New
Haven, Conn.
"ln summing up the situation, Re-
ceiver Benedict said: 81 have just
taken hold and have no idea of the
firms condition. am assured that
there are no stock exchange obliga-
tions. have been told that some
money was lost in outside ventures,
such as the local taxicab business and
in a similar venture in Chicago, but
have heard nothing to confirm this"
It Ia understood, however, that the
banking firm of Tracy & Co. acted as
bankers fol taxicab company of this
city when it was organized and heavy
losses were incurred. it is sail, in the
recent strike of chauffeurs.