New-York tribune., 1909-05-19
CREDITORS SHOW FIGHT
STORM BROKERS DOOR.
Debmred from Tracy Offices They
Threaten to See Jerome.

The Offices of Tracy & Co. the suspended hrn or
stockholders at No. 30 Wall street. we're besiesed
all day yesterday by a camoring crowd OF men and
women creditors who anxious to present their
claims Receiver Edward G. Benedict. So insist
ent did the crowd become in the afternoon that a
relay of clerks ard persons who were said to be
in the employ of the firm posted at the doors
to keep out creditors who did not seem satisfied
with the treatment accorded them.
Although a Stock Exchange house. it appears
that the firm dill large business with small Gus
toners. Many or the firms customers had been
suspicious of late of its stability
Receiver Benedict, in a statement yesterday after
noon, said.
-, As far as can be asceTtained at this early date
the cause of the failure has been the almost con
unuous withdrawal by customers OF their accounts
within the last few months and loss in outside
ventures
The outside ventures are supposed tC refer to
operations in the wheat market ana to Mr.. Tracy's
interest in the promotion of taxicab companies in
various cities. The head of the suspended firm is
said to have bought stock of the parent English
concern at the top market figure, with the idea
of disposing of il IN this country at substantial
profit His inability to do so. coupled with losses
incurred through the strike of drivers for the New
York Taxicab Company. is said to have hit the
firm hard.
The suspension of the firm formally an
nounced on the Stock Exchange yesterday. Later
W. A. Scott Familiarity referred to as Farmer
who was one of the petitioning creditors for
n
options signed by him having the Endorsement OF
the firm would be made good
Several creditors clamorous before the firm
door were not allowed inside, and told to tell their
troubles to their attorneys. To one of those VINO
received this admonftion chorus of angry credit
ors exclaimed Don't bother with an attorney
but see the District Attorney" This man. Wh"
seid he was August Kirch, of No. 90 East lz4th
street, declared he bought through Tracy q 20
twelve shares of Amalgamated Copper ABOUT SIX
months ago having cash for the stock. Thinking
the securities would be safer with the hrm. ne lelI
them there On several occasions he asked 10 nav
the stock transferred his name. but he said MS
reorest was never granted. Recently he bought
through the firm fifty shares OF Missouri kansas
&. Texas common. paying a,+0 in cash ana ue-
positng the certificates with Tracy & Co 10 CoEel
the $500 balance due on the purchase. [AI'el 'hS
+ransartIon Kirch declared he was told his Anal
esn7ated Copper was being held as collateral ne
Drotested again Yesterday that the Copper trans
action was entirely separate The only sats1ac'on On
he got was the advice, Tell your lawyer aOou' -,
SaveraI Of the men who had ready access TO lhe
Offices of the firm yesterday were sa'o 70 ih'e
formerly associated win the oalhrup1 nm -
O. Brown 6, Co.
William w. Tracy, it was learned yesterday vas
wears ago in Chicago in business with Charles h
Macdonald who is now special partner IN h n
Thomas & Co. the senior member OF which house
Is president of the New York Stock Exchange. me
Chicago firm was known Tracy, Macdonald d
Co. and Mr.. Macdonald was one Of the ieel'ns
brokers for Joseph Letter on the Board or Trace
when Letter conducting the campaign IN "ileat
which ended so disastrously for him. Mr. Tracy.
II is said has always been interested In the wheat
market and reported 10 have gone heavily short
of that commodity when Patten running his
recent corner. having taken that position. accord
ing to report here. because his observation Of the
outcome Of Letters effort TO corner wheat had con-
vinced him that no wheat corner could be engi-
neered TO a successful finish
Tracy & Co. it is understood. suffered rather
severely in the panic OF 1907. but were not perns
nently crippled by it They are said TO have been
heavily short Of stocks in January Of this year but
to have been extricated from difficult position
through the market break OF the following month
due to the weakness in Steel For the last
months the firm believed 10 have done very
little IN stocks