The New York herald., 1922-12-19
HOUSTON, FIBLE & co.
SUSPENDS TRADING
Largest Brokerage House in
Southwest Closes With
Liabilities Millions.
WHEAT HINTED AS CAUSE
Head of Firm Announces He
Can Pay Large Per Cent.
if Given Time.

Special Dispatch to THE NEw YORK IIEaALD.
KANSAS CITY. Mo. Dec. 1s.-Hous-
ton. Fible G. Co., the largest brokers
of stocks and bonds in the Southwest.
closed their office to-day at 935 Balti-
more avenue. No one at the estab-
lishment to-day was willing to admit
the company had been trading on it's
own account. That almost invariably
has been the cause of brokerage fall
ures-the tying up of firm capital in
stock purchases made on its own ac-
count. Legitimate brokerage houses
are presumed to avoid speculation on
their own accounts.
The failure came as a thunderbolt
to the financial men of Kansas City.
Even the clerks of the company had
no inkling Of the trouble. Every one
was in his place at the Office ready
for work at 9 O'Clock this morning.
The day opened like any other Mon
day. Large orders were coming in. for
the firm has almost a thousand custom
ers on the books. The telegraph keys
began their preliminary rattle. But over
the private wire came a message that
was carried to w. M. Fible. A blow had
fallen In New York and at the New
York Stock Exchange. The firm had
been cal}cd on for $780, 900. a margin
which was not at hand.
Causes CONSERVATION.
The message from New York was sent
by Mr.. Fibles partner. w. r. Houston.
who had gone to New York Friday. The
scene that followed may be common
place in Wall Street, but on Baltimore
avenue II was dumfounding. The trad
ing room and offices were cleared of
customers. Mr.. Fible hastily summoned
a lawyer from the firm of Lathrop. Nor
row. Fox K Moore. A brief conference.
then two things:
On the locked doors was pasted this
notice:
The business of Houston. Fible & Co.
is in my hands as assignee for the bene-
fit OF creditors.
THOMAS II. REYNOLDS"
Mr.. Reynolds was the lawyer who
had been summoned.
Judge Arbs s. Van Valkenburgh of
the Federal Court appointed Mr.. Rey-
nolds receiver. ito conserve all the assets
OF the firm for all the creditors" This
was done to forestal possible attempts
TO throw the firm into bankruptcy, II was
announced.
Mr.. Fible put on his hat and coat
and departed for his home.
A second message from Mr.. Houston
In New York. and announced by the
office here. was that If customers would
consent TO voluntary liquidation the
firm would be able to pay so per cent.
of Its liabilities In fifteen days, 10 per
cent. in sixty days and per cent. later
on. That would indicate that the short
age would be approximately per cent.
Liabilities Not Known.
The amount of liabilities ls not known.
but the assets immediately available
are nearly 5000. 900. including scoo. COO in
banks and $375a0o0 with New York
firms with which they 1id business.
No money IL owed to Kansae City banks
by Houston, Fible & Co. Money had
been borrowed here occasion lily. but
because OF the liquid collateral offered
the firm was getting it's loans at lower
interest rates In New York
Mr.. Reynolds said his first procedure
will be an audit. He said he Is not
sufficiently familiar with the business
to comment on the failure.
Houston Fible had been in business
thirty-fivc years. The firm Is n MEM
Der of the New York Stock Exchange.
the New York Cotton Exchange and
the Chicago Board OF Trade. Branch
offices are maintained In Tulsa and
Oklahoma City.
The suspension Of Houston. Fible &