El Paso herald. (El Paso, Tex.) 1901-1931, 1916-09-19
FL PASO HIT HARD
BY STOCK TiNGLE
Some $455, 900 Hangs in the
Balance Until Denver
Puzzle is Solved.

-Four hundred and fifty five thousand
dollars TO be won or lost by Fl Pasoans,
dependent on what sort of settlement
can be made of the affairs Of Levy
Brothers. stock brokers Of Denver. who
suspended business last week-that
seems to be the status OF affairs at
the moment In connection with the
wild scramble in United Verde Exten-
sion. the recent sensational advances
in market quotations. and the rapid
rise in paper wealth Of many FL Psso
men. women. boys and girls
United Verde Extension has been the
market leader here for many months
among the stock speculators- The stock
was originally sold here At soc 10 90C-
Some few bought in at that time When
IL rose 10 81 many more went in When
il reached SIC. there was q rush Whole
families were provided with little
blocks by indulgenr fathers and moth
ers; women who had few hundred or
a few thousand in savings withdrew
their money from banks and wagered
il against the stock market girls and
youths acquired the habit Of watching
the wonderful rise in L V F. quota
lions with all the concentrated excite
ment of the typical wall street
plungerT in the moving pictures; one
instance is still related in which a wei
known wife and mother. over the en-
phatic protest Of her husband. went 10
the bank during the husbands absence
and withdrew her $4,000 savings &C
count TO buy l. V +. One well known
and welltOdo widow invested $1,000
early in the game and watched her pile
grow steadily until she had accumU-
lated a paper profit Of nearly S40. 200.
4 Valuable Property.
There is no question in this case that
L Y. F. Is a real mine. valuable
property. and sure to be a large pro-
Queer and dividend payer. The local
knowing nothing of mining Or stock.
plunged into the market as a pure
gamble. and were not careful TO de-
mand delivery Of stocks bought
Much Of the local trading was done
through the firm OF BaCweu * CO.
which was clearing through the Den
YER house OF Levy Brothers Fl PaSo-
ans deposited cash and stocks. chiefly
cash amounting 10 some S15o.000 with
the Bagwell firm. which in turn sent
the mOhey to the Denver house 10 buy
L Y F. stocks Just what happened
next is not clear. but II Is known that
paper gains OF many points were made
10y the Fl PasO spectators without
formal settlement having been made,
the Fl PaSOans assuming that the pur-
chases they ordered were being made
regularly. and that their stocks could
be had on demand.
Altogether il is estimated that the
amount due the 50 or more Fl Paso
spectators through the Levy house
would have aggregated about S455.000
at the time the Denver house suspend
ed OF this total. about $4,000 was
cold cash or stocks which had been !
paid in by the Fl PasO customers
Whether any of the S455.000 VIII ever
come back is the question
John l. Dyer is in Denver now trying
TO work out plan Of adjustment and ,
secure the return OF the money. or part
Hnra he
tanned by the local house Of BagwelI Z
& Company in its own interest and that
of its clients.
It is possible that some agreement
can be reached TO deliver the stocks {
at lower price than the prevailing /
market. and thus save TO the FL Pas
Oans the bulk OF their gains
Local Banks Not Concerned
Local bankers affirm that no local /
bank is involved in the matter. since .
Bagweu & Co. did all their financing
through the Levy house in Denver. and !
not locally Practically all the local !
spectators are believed to have been I
ION velvet" at the time Of the sus-
pension. they having bought the stock T
at low figure and having piled Up 4
large profits before the latest ven !
lures. 50 they are not in arrears at the !
banks Bankers generally are inclined 7
have the speculative fever checked. 7
though they do not welcome the man .
ner OF the checking
C. l. Bagweu Of the local firm has I
been confined to his bed with serious
illness. but is up and around again He !
went 10 Denver when he heard OF the 7
troubles of the Levy house. and on his
return he said he hoped TO be able to ;
make good all the cash deposits left /
with his firm by Fl Pasoans. though 4
he could give no assurances that the !
paper profits" OF the Fl Pasoans I
would ever be paid He has declined {
TO make a statement for publication. /:
but his friends. clients. and business /
associates feel sure that his actions 4
an through have been entirely reEu-
lar. and that he, like his FL Paso !
clients. has lost through the careless
ness OF others beyond his control