New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-27
LEAVITT & GRANT FAIL
Consolidated Firm Could Not
Raise New Capital Promptly.

The suspension Of the firm OF LeaVltt
C. Grant was announced on the Consoli-
dated Stock Exchange yesterday morn
ing. following an examination OF the
books by the ways and means committee
Of the exchange, which, according to
statement made by President DE Aguero
of the exchange, showed the firm to be
insovent
The copartnerShip Of Leavitt Grant
was formed on February 10. l9oZ' the
present partners being Rufus Il. LeaVltt'
who has been a member Of the exchange
since February 10, 1903, and Peter Geddes
Grant, a member since october e. 1915
The principal Office Is at No. 90 Broad
way, and branch Offices have been main
tanned at 25th street and Broadway. this
city. and in Paterson, N. j., and Hart
ford, Conn. The troubles Of the house are
said to be due TO the failure to realize
the expected returns from policy OF ex-
pansion, in establishing various branch
offices and organizing an extensive wire
service.
In their statement relative TO the sus-
pension Leavitt e. Grant make no estl-
mate of their assets and liabilities. IL
was reported however, that they had on
hand lust prior to the failure Sl3o,Vo IN
securities and $4,000 in cash, and that the
Consolidated Exchange committee OF IN
yestigation required them to raise over
night an additional sum Of between No'wV
and 100000, which, assuming that the
S35, 900 mentioned meant market value OF
the securities held, would bring the assets
81 lah
$4,000.
The statement issued by Leavitt d
Grant says:
The committee of ways and means OF
the Consolidated Stock Exchange callea
upon the firm yesterday afternoon, haNIhs
notified them the previous day that tne1
would make an investigation OF thelI
books. on entering the committee said
that they were there, not on GROUNDS que
TO complaints of clients or otherwise, put
because OF their authority. The Erm az
mitted insolvency and begged to be al
lowed reasonable time in which TO ac-
quire sufficient extra capital TO carry on
their business. The firm was notified at
midnight by the chairman of the commit
tee, ogden ID. Budd, and BY the president
OF the exchange, NJ. Il. de Aguero, that
unless they could become solvent by "
o clock in the morning their suspension
would Internationally be announced from
the rostrum of the exchange. The amount
demanded TO be raised was In excess on
the ability OF the firm on such short
notice and therefore the firm was sus-
pended this morning. We are advised by
counsel that IL would be inappropriate at
this time TO make any statement as 10
the approximate condition, but all we can
say Is, that from the expression OF con-
fdence which we have received from our
customers we feel that there Is very
good chance 10 arrange for resumption
Of business.
The ways and means committee, Presi-
dent De Aguero explained, exercises
bers of the Consolidated Stock Exchange,
its duty being at irregular intervals 10
examine books OF the different concerns.
In pursuance Of It's function the COM
mittee' called upon Leavitt & Grant to
open their books for its inspection. and
in the course of that inspection, which
began about p. m. on Friday and lasted
until nearly midnight, the committee
arrived at the conclusion that the firm
were insolvent.
An involuntary petition in bankruptcy
was filed yesterday In the United States
District Court against Leavitt & Grant by
William l.. Metcalf Joseph Christal and
Joseph Jennings, with total claims
amounting 10 $3.50. IL Is alleged that the
defendants committed an act OF bank
ruptcy and within the last two months
made transfers OF property and stock 10
creditors with the intention Of preferring
them.