New-York tribune., 1910-08-20
RIOT IN BROKERS' OFFICE
Trouble Arose When Bank
Stopped Certifying Checks
FIRM SOLID, SAY PARTNERS
B. H. Scheftels e. Co. Announce
That Checks Will Be Paid To-
dav-Wild Scene on Curb.

s+ooLs u-es in trouble and that the bank
in which it keeps it's accounts had refused
to certify checks issued by the hrm IN
navnent for deliveries of mining stocks.
caused the FIRMS office to be besfeged
shortly after 3 o'clock Yesterday py
bowling mob of curb brokers and custom
ers demanding settlements There was
small sized riot until the police reserves
who had been summoned to assist the SOL
itary member of the force who guards 'he
curb market, arrived and restored oroer'
Even after the reserves got there eAci'e"
brokers crowded the street In front OF Ihe
firms offices. waving their checks III inc
air and ansrily demanding payment A
member of the firm finally appeared at ,.e
window of the office, which faces directly
on the curb market. and assured the checA
holders that the firm had ample money IN
IN. hank to meet all outstanding checks
and that the holders of them would get
+bair r,onev as soon as the bank opened
for business this morning.
TT. exnlained that there had been an
enormous amount of deliveries during the
day and that a great number OF checRS
had been issued in payment and the panA
had not had time to certify them All De-
fore closing time, but that all Would get
their money to-day
This did not satisfy the brokers. however,
who continued to clamor for their money
until the police finally forced them 10 move
on Some of the check holders VINO "ere
in immediate need of money to settle WIN
their own customers then began oherlnS
their checks at a discount of 10 per cent
from the amount for which they were made
out, which ran from 800 up to 1900 Some
checks were disposed of al this rate, among
them being one for s7S7 made payable to
E. NJ. Buchanan, a curb broker, and one
| for 1856 payable to F. r. Jones, also curo
| broker Another broker, who had a check
| for SLIGO. sold 1t for $1,000
Checks at Discount.
Several more checks were disposed of at
this rate, but the supply was greater than
the demand and holders were finally offer
ing checks at 60 cents on the dollar, with
no takers The scene on the curb was
wilder than when there is an active mar
ket in stocks. A man with a check would
be in the middle of crowd waving 1t IN
the air and asking how much he was Of
fered: the others would shout back bids,
and so 1t went. many similar groups being
scattered all over the street
Finally word went around that Charles
4. Stoneham & Co. of No. 5S Broad street.
another curb brokerage house, would honor
all the Scheftels checks that were out.
There was an instant rush for the Stone
ham Offices but the report proved erro-
neous.
J. Ross Robinson, the firms manager.
told the check holders. however, that he
had made Il personal visit 10 the National
Reserve Bank, on which the checks we're
drawn. in company with a member OF the
I Hy-t a
cashier that the latter had ample money
on deposit there to pay OFF all the checkS
of the firm outstanding.
This served to calm the owners of the
checks somewhat and they finally decided
to wait until this morning before taking
snv further steps to collect the money due
them.
In the mean time &. II. Scheftels, after
whom, the firm is named. and George Gra-
ham Rice. who is said to be it's real head,
we're holding conference behind locked
doors A big man stood guard at the en-
trance to the offices.
Firm, Makes Statement.
The newspaper men were finally ad-
n1itted. however. and after some persuasion
the heads of the firm consented TO give out
a statement. Here it Is;
The statement that the offices OF TINS
company we're crowded to-day by brokers
trying to make deliveries of stock and col
lecting money therefor is without 1ounna-
ton In fact In the usual course OF . pusl
ness there were securities to the extent
of many thousands Of dollars delivered and
checks in payment issued therefor.
clique of stock brokers who have been
operating for decline in group of stocks
in which we are interested circulated
rumor to the effect that we were slow in
taking up the securities AS a result. there
rcd rIICh n
checks. One of the banks with whom we
are doing business, and on whom these
which was thirty minutes after the GUS
tomary hour. Then they stopped. They
could have stopped. according to custom.
thirty minutes earlier had they wished.
Thinking there might possibly be a mis-
take in our account with this bank We
called on the vice president at o'clock,
anu he gave a statement showing that
there was both cash credit and a credit
on outstanding collections amounting to
standing checks. We took with us a rep
resentative of noted brokerage firm which
has an account In the same bank, and
after hearing what the vice president had
to say. and after examining our accounss
the firm in question Immediately offered
TO cash any check anybody had with our
name attached to 1t
To give a fair idea of this uneasiness. ii
IS only necessary to state that there is a
very large short interest in one of the is
sues with which are identified and this
issue represents a property regarding
which the officials announced on SATURDAY.
that II was on the eve of opening I'D a
great ore body which would quadruple its
value When this happens on the prop
erty the stock in question will multiply in
value SO, o0o, 600 or $4,000. 000 and the shorts
would necessarily suffer great loss
We have been in business in Chicago
since 1902 and in New York since January
1909 Our activities on the Street have ap-
parently been of such consequence that
men are compelled TO go to extremes TO
accomplish their sordid purposes
Bank Confirms Statement.
The firms statement that the bank had
continued to certify checks until 80 O'Clock
IN the afternoon was confirmed by r w
Mains, assistant cashier of the National
Reserve Bank He said that a large number
of checks drawn by SChefte1s & Co. were
presented for certifcation and cash late in
the afternoon, and continued steadily until
s 80 o'clock, when he shut down on them
it not being obligatory on the banks part
to certify checks after O'Clock. Asked IL
the Scheftels firm had money enough on de-
posit to cover the outstanding checks. he
replied. "I believe So
The total amount OF the checks put out
by the firm yesterday in payment for stocks
delivered to them could he do