Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-25
RECEIVER IS NAMED
FOR PYNCHON & Co.
Irving Trust Co. Appointed
After 10000, 900 Firm is
Closed by Exchange.

By the Associated Press.
NEW YORK, April 25-The Irving
Trust Co. today took charge Of the At.
Stock Exchange house. after appoint.
ment as receiver by the Federal Court.
Definite information as to the status
Of the business was not yet available,
but 1t was indicated that the unoficial
estimates of the firms loans of $3S,000,-
900 to $40 900 900 was approximately
correct. It was not possible to obtain
an estimate of the assets. but more de-
tailed information may be available on
Monday after auditors have proceeded
further with their work.
VIII Close Branches.
The branch Offices of the firm will
be closed as early as possible and 1t Is
expected that about half Of the as
employees will be dismissed.
An air of restrained orderliness was
apparent at the Arms main offices to-
day. The customers room and the
corridors contained only the usual
number of people.
AS the firm was suspended late In
the trading session yesterday, 1t was
considered unusual that q large number
of its customers did not appear today
to inquire about their accounts.
Has Office In Europe.
Pynehon & Co. was one Of the prip-
cipal wire houses of the United States
and did an extensive business IN the
grain and cotton markets. both in Eng
land and in the United States. and in
the commodity markets generally. The
firm also participated in financing syn
dicates and in the underwriting OF 90.
mestic and foreign bond issues. It's
ofiices are located in New YORK, Lon
don, Paris, Liverpool, Chicago, Mil
waukee and Battle Creek. Mich. Offiees
in Manchester, England, and Berlin,
Germany, were recently discontinued.
Various Of the az partners OF the
Arm held memberships on the stock
Exchange, Curb Exchange. Cotton Ex-
change, Produce Exchange, Cocoa Elk"
change, Coffee and Sugar Exchange,
Rubber Exchange, New York Hide ara
skin Exchange, National Raw Silk Ex-
change, Chicago Stock Exchange, Chi
cago Board of Trade. winnipeg Grain
Exchange, Liverpool Corn Trade Asso-
citation and the Liverpool Cotton Ex-
change.
Other Suspensions Follow.
Soon after the suspension from the
Stock Exchange in New York the hfm
was suspended from the Curb Exchange,
/
other exchanges in which it held MEM
berships. Wall Street took the news
| with disbelief, because the company,
despite its known difficulties, was re-
garded as one of the most strongly IN
/ trenched in the Street and backed by
practically unlimited banking resources.
Recent heavy declines in stocks ana
bonds in which the firm was actively
interested, and which were presumably
| hal kRxrk avnIyr ANfIa f
| 000, 900 or more in loans and credits,
appeared to be the immediate cause OF
the difficulties, although 1t Is UNDER
stood that the firm also had reoourse
to banking assistance last year. Sonne
of the stocks and bonds in which the
Arm was prominently interested were
Fox Film, General Theater Equipment,
Utilities Power q Light, and some for.
eign bond issues. These securities have
been sharply depressed in recent ses.
sions on the Stock Exchange.
Commodity Weakness Hurts.
It was presumed that the weakness
which has been prevailing for more
than a year in the commodity markets,
| especially in the cotton and wheat
markets, was an important factor In
the background to the suspension,
which led late yesterday afternoon TO
voluntary petition in bankruptcy by
small creditors. The bankruptcy COM
plant named the % members of the
firm as individual defendants and was
! filed by Joseph Uniacke, attorney. The
petitioners were Merkle & Ebert,
claiming $2.103; w. H. Miles, Inc, $40,
and the Despatch Printery and Find
cry, 5000. The petition stated that the
defendants owe more than 1000 and
are unable to meet obligations, and
that on March /, while insolvent, they
paid $16,666.66 to the Trinity Build
| ing Corporation without regard to the
rights Of other creditors.
The partners in the firm are George
M. Pynchon, Benjamin @. Lathrop, G.
Buchanan, James l.. Martin, H. Nicholas
Edwards, Jack @. Sturtevant, Curtis A..
MeWhinney, William F. Ingold. James
w. Sims, George M. Pynchon, IT., N. H.
| Ferguson, E. T. Paul, w. e. REFS, Leo
T. Molly. w. Stapley Wenham, Harlem
Burr Eldred, Wilbur F. MeWhinney,
Richard A. Ashton, Frederick Harry
Woods, John N. Helmke, IT., William
Henry Colvin, jr., and Preston Lock-
wood. The Stock Exchange member.
ship Of the firm was held by Wilbur =.
McWhinney.
Silence Greets Announcement.
In the absence Of Richard Whitney,
president CT the Stock Exchange, the
announcement OF the suspension was
| read from the rostrum of the institu-
ton At 2:22 pm. by Allen L. Lindley,
vice president. The membership of the
exchange on the floor met the an
| nouncement In the customary deep
silence which always follows the dra-
matte ringing of the big electric gong
in the midst of trading. Immediately
after the announcement business was
L
short covering which came into. the
| market.
Although the trading floor met the
announcement calmly, considerable dis
quiet was aroused in Wall Street over
the suspension, which was regarded as
overshadoWing even the large Prince d
Whitley failure of last year. Bankers
stated, however, that no alarm need be
felt and that it had been because Of
the sharp declines of individual issues
in which the firm was interested that
| the action by the Stock Exchange had
1 to be taken.
It was pointed out that the amuse-
ment and public utility stocks in which
| the firm has been interested have been
| unusually weak recently and have de-
,lined far below their highs for the year
1t was also indicated that foreign bond
issues in which the firm had an interest
have been swept downward in the bond
market recently. Through its London
connections the firm is reported to have
| been interested in Brazilian issues and
other South American securities.
The Chase National Bank Is one Of
the banking institutions which has adj
vanced loans to Pynchon g. Co., 1t was
stated yesterday by Winthrop w. Al
drich, president of the bank.
AVIATION GROUP .HONORS