New-York tribune., 1913-11-14
Suspension of Big Brokerage
Concern Has No Disturbing
Effect on Market, Nor
Does 1t Involve Others.
ONCE VANDERBILT HOUSE
Industrial Chaos in Mexico and
Withdrawal of Member Said
to Have Caused Conditions
Which Resulted in Inabil-
ity to Meet Obligations.

known brokerage houses IN wan
Street. closed its doors yesterday. An
nouncement OF the failure was made
on the floor Of the Stock Exchange
after involuntary bankruptcy prOceel-
ings had been Instituted in the Uhlted
States District Court.
Dry rot" the gradual accumulation
of inactive securities and the WIN
draval Of large deposits caused the
suspension. which had been eXpect'u
in the financial district for more than
a week. The liabilities will probably
reach S5OOO.OW The free assets are
about SJO,0oO.
The firm. once the favorite house OF
William H. Vanderbilt. sr. who was
close personal friend Of II B. Holli'S'
head of the firm, had not done any
business of note on the Stock Exchange
for more than year. For the IaS'
five or six years the house was en-
gagged in promoting various Mexican
securities. II was partly due to the
unstable condition of these securities
caused by the industrial chaos In Mex
leo. that prccipitated the suspension
Another reason is said to have l'cen
the withdrawal Of securities 10y
Raphael r. GOWN, the Cuban promot'
or. from the firm on September u lest
Uo turned his attention to developing
several Mexican investments III WhlSn
II. B. Hollins had been interested.
Market Not Affected.
The failure had no effect on The
stock market and, as far IS could p'
learned last night, no banks. trust
companies or brokerage houses Were
seriously hit II was reported and not
denied by Lexow. MacKellar & Wells
counsel for the creditors, that Slr'
Vanderbilt and ]. +. Morgan & Co
were among the creditors. Mr.. Nells
said several banks held loans which
were amply protcctel by collateral
He admitted. however, that 1t would
be some time before the amount oi
the assets would be known. as many
Of the securities had no market value
at present.
MIR. Holins in his long career IN the
financial district made many warm
friends and much sympathy was cN-
pressed for him by heads and members
Of leading financial and business houses
when news Of the suspension was MADE
public. The hope was expressed 'nat
the house would be able soon TO resume
business.
The petition in bankruptcy was liled
i'm behalf OF &. w. Sweet Of No. 81
Broadway. and James f. Newcomo. II
No. 81 Broadway, who have claims t"r
deposits aggregating SGGl u. judge
Hnugn appointed a. Leo Everett re
cciyer. under a bond Of $1,000 Law
yers for the firm are Beekman, Men
ken.& Griscom. OF No. Is Cedar street
Mr.. Menkcn said last night that lie
had been called in as advisory coun-
sci TO the firm a short time ago, and
after going over the books had advised
a receivership. He intimatcd that
large depositors had withdrawn their
accounts i'm the last year, which ndd
weakened the firm. but he refused t.
mention names of those who deserted
the firm before its collapse. The
Eauitable Trust Company is one that
lent money to the firm. ALVIN w
Krech. the president said ii was amply
secured.
The Hollins house included John a.
Aull and Anthony II. Walberg. OF Mid
dletown. Ohio: Briton y. Busch, OF
Locust Valley, Long Island, and Wal
ter Kutzleb, of this city. Aull, Wal
berg and Kutzleb were admitted ids'
September, after the withdrawal oI
GOWN. Briton n. Busch was a mem.
her of the stock Exchange. Kutzlet
was at one time representative Of the
Russo Chinese Bank and was in thc
banking department of the National
Bank of Commerce.