The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-04-25
BY ELMER c WALLER
United Press Financial Editor

NEW YORK, April 24.-An-
nouncement of the failure Of the
stock exchange firm of Pyncllon &
Company today unsettled the
stock market but banking support
which had been mustered in antici-
patton Of the event prevented a rout.
Pynchon g. Company, one of the
old firms in the financial district,
had nder sponsorship several COM
panies which of late have been
market footballs for the bears.
These included Fox Film and Cen
eral Theaters Corporation, both of
which broke after the announce
ment Of the company's suspension.
The suspension occurred in the
last hour. The street had been ex-
pecting it and when the gong
sounded on the exchange the en-
tire membership nthe floor hushed,
tickers stopped, traders gathered
around the rostrum while Vice
President Allan L. Lindley made the
announcement. Lindley acted in
the absence of President Whitney.
Failure Was Anticipated
The Stock Exchange suspension
was quickly followed by the Curb
Exchange, Chicago Stock Exchange.
New York Produce Exchange. Chi
cago Board of Trade and New York
Coffee and Sugar Exchange.
The failure had been anticipated.
1t was current several months ago
when Fox Film Corporation was in
financial difficulties.
There were no demonstrations
around the offices of Pynchon e.
Co., such as those which prevailed
at offices of companies which failed
in the market panic.
Pynchon & Co. issued the follow
ing statement:
Due TO the sharp decline in a
number of securities in which this
firm and its customers have actively
dealt, the firm was forced today to
consent to a suspension on the New
DIX SIOcK exchange.
Bank Aid Ready
ut is hoped and believed that the
suspension is temporary and that
with the return to anything like
normal values in the securities in
which the firm is interested, no
creditor of the firm vii suffer loss.
Already assurances have been
given by banking and other credit
ors of their support and every eff
fort will be made for the reorgani-
zation of the firm with new capital,
at the earliest possible date.
Pending an audit that is being
made no definite statement of as
sets and liabilities can now be made.
Even with the existing abnormally
low prices Of securities the value of
assets is practically equal to liza
bilities."
Announcement of the suspension
Immediately set in motion the bank
buying. Steel was given support
and it quickly jumped to 1881
Other industrials met equal atten-
ton.
The support was withdrawn after
it had answered its purpose. Steel
slipped back and closed at 1865, off
e for the day.
Westinghouse Electric which had
been a weak feature, closed at 6115,
off Az points.
Rails Make Comeback
Railroad shares made a swift
comeback near the close. Atchison
spurted 61a points and Union Pacific
5l9 points.
Oil shares made new lows. Utili-
ties ruled firm but gave ground
somewhat near the clase. Noranda
Mines, a recent addition from the
curb, advanced. Rubber stocks we're
weak and closed around the lows.
A rebound in leading rails in the
late trading sent the railroad aver
age preliminary Dow-Jones calcu-
lation) up 1.29 points to 1857. The
industrial average was off 1874
points at 155.49.
Sales totaled 100000 shares,
against 100000 shares Thursday.