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DROP KOUNTZE BROS. FROM EXCHANGE NEW YORK The banking formed 1870 stock exchange insolvency The firm had time occupied prominent position bond writing but has recent Its difficulties tributed the bond market The firm maintained town formal issued by the of the of suspension Kountze Bros brought by the the prices for high preciation bonds the exchange of such bonds and buying their to their customers was the business of the firm principle
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STOCKS ARE LOWER IN LIGHT TRADING Rails Especially Weak in Quiet Market-Leaders Sell Off. BY GEORGE T. HUGHES. Special Dispatch to The Star. NEW YORK, October 13.-In quiet and almost featureless trading, stocks reacted in today's opening session of the week on the exchange. The losses were due not so much to any increased liquidation as to indifference on the part of buyers. News over the week end was not calculated to arouse enthusiasm for the stock market. The foreign situation discouraged buying and disappointment was expressed at the delay in reaching a decision on the freight rate case by the Interstate Commerce Commission. Finally, the failure of an old and highly respected brokerage house, announced soon after the opening. had a depressing effect on sentiment. although it is doubtful whether it materially affected prices. The rails were especially heavy, with losses that up to noon ran as high as 3 points. Baltimore & Ohio, New York Central. Northern Pacific, Pennsylvania and others sold off easily. Pullman started in at a new high on the move, but reacted with the railroad shares afterward. Corn Products, supposed to be heavily interested in rainroad securities, was weak. The industrials and utilities were not quite as depressed as the rails, but nearly all the leading issues were lower. U. S. Steel ruled under 70 with a loss of a point or two. The Street is already discussing probable action on the Steel dividend on October 27. In any event, the third quarter statement is not likely to be cheerful reading. The opening was fractionally lower. The rails showed fairly wide declines. thereby expressing disappointment over the fact that no announcement on rates or wages came out over the week end. United States Steel at 703/4 was off 1/8, General Motors at 26% was down 1/4, General Electric at 31 1/4 lost ½ and Standard Oil of New Jersey dropped a shade to 31%. Chesapeake & Ohio opened at 30% off 134. Southern Pacific at 56½ was down 1½. Northern Pacific at 24% was off 2½. American Tobacco common rose 3/4 to 87. but the B shares opened off 1³₄ at 89½ American Telephone gained 5/8 at 13814 and American Water Works was up 3/4 at 31% but Columbia Gas & Electric lost ½ at 20³₄ and Consolidated Gas was off 14 at 72%. North American was down 1 point at 36% as Public Service advanced 3/4 to 64½. Du Pont lost 7/8 at 61½, as did Electric Autolite at 26⁷, Food and chain shares were little changed. President Whitney announced from the rostrum immediately after the opening the suspension for insolvency of Kountze Bros., one of the older private banking houses of Wall Street. The partners included Herman D. Kountze. the floor member. and Charles T. Kountze. Stuart Sidney Furman, William H. Gregory, Denman Kountze. Palmer D. Kountze and Frank Edgar and Russ. Trading dried up on the decline and after the list had dropped fractionally to 2 points, a partial recovery set in. During the first half hour volume amounted to only 200,000 shares. the same as on Saturday. Call money renewed at 2 per cent. this being the first time since April it had opened higher than 1½ per cent. Supplies of money were small and demand comparatively small. Active issues like United States Steel. J. I. Case, Columbian Carbon, and Westinghouse rallied fractionally The rails did not rally at all. The market for these issues was almost nominal, however, so small was the trading Utilities, motors and oils were barely steady.
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Street New York, Oct. prices drifted quietly lower today, last week's buying enthusiasm appeared to have subsided somewhat over the holiday Developments of political affairs England and Germany, and last week's premature expectations of interstate commerce commission's decision the petition for percent increase in freight rates, Wall street somewhat sobered. Nevertheless, the progress made setting up the billion dollar credit corporation was still distinctly stabilizing influence. Rails were the heaviest group in declines to points appearing in New York Central, New Haven, Baltimore Ohio, Santa Fe and Union Pacific, losses more than points appeared such issues American Telephone, General Steel, American Can, Consolidated Gas. Eastman, Woolworth, Corn Products. Borden, American TobacAllied Chemical, Dupont and Westinghouse. Losses of point more appeared throughout the list. Stock was large volume, however, and sales were largely regarded as profit taking on last week's sweeping advance. The firmer money market was reflected in the high grade yield bonds which normally respond in trends in the money market. Call loans percent for the first time since April, after rising from 1½ percent during Friday's sesBankers' acceptance rates again advanced. Suspension of the old bond Kountze Brothers was notable influence. bright the markets, rising rather brisk-
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Kountze Brothers' Bank Suspended New York, Oct. investment banking house Kountze Brothers, formed in 1870, suspended by the stock change for today. The firm had at one time occupied position in bond but has been less active in recent years. Its difficulties were to the severe decline in the bond market in the past two months. The firm was not active in stocks. maintained no out-of-town offices. The firm was originally foundin Omaha, Neb., and moved to New York few years later. private banking business was started in Omaha 1857 under the name of Kountze brothers. The New York firm was formed thirteen years later. The Irving Trust company appointed equity receiver for Kountze Brothers today by the federal court. Liabilities total $6, 934,000 anad assets No Effect In Omaha Omaha, Oct. H. Dapresident the First National bank of Omaha, today announced that suspension of the Kountze brothers bond house in New York "does not affect us in Omaha "Most of that old firm are New York Davis said in referring the suspended house. firm owned some stock in this bank but the amount relatively small. only 1,500 shares out our total over 12,000 shares. Members of the Kountze family here and other states larger blocks. but the New York owns only what have stated." and Denman Kountze are vice-presidents of the First bank of Omaha. parallel during this long time. particular time is interesting to note that upon the occasion of the wedding anniversary Mr. and Mrs. "Billy" Strope, which was recently who the best man the wedding in Appleton, Wis., included among the guests at the anniversary party. These brothers were born in and when they were enough to hunt, went a-gunning for squirrels with an old flintlock musket their grandfather had carried through Revolutionary war. When they were youths of and 16, Lon being the older, they moved with their parents Wisconsin. Here they grew to manhood, and in 1879 fitted out ered wagon and started for Nebraswhere they took homesteads Enterprise, north of Orchard. Both brothers married girls from the east, and the wives both were teachers whose first schoolhouses here were made of sod. Many of the older residents near here remember Lon's wife Miss Sarah Parks, who taught the Mars school, and who with her pupils once helped the mailcarrier get his team and cart out of the creek when they broke through the ice as they attempted to cross. When the brothers and their families decided to quit farming they left Nebraska to locate Florida for time, but Nebraska lured them back and they finally returned to settle down Antelocating Orchard where they live side by side.
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COTTON NEW YORK, Oct. 13 cotton market displayed firm tone after receding from an early bulge of more than $2 bale today prices closed to 39 points higher on substantial buying by the trade. Short covering was induced by favorable developments over the weekand further in new speculative buying was in evidence. Southern selling hedging was readily absorbed by good demand. Japanese interests again were active buyers. Toward the end of the session sentiment around the ring lost some the early cheerfulness when was pointed out some professionals that much of the buying was in the way of historical covering steady prevailed and the market closed firm. STOCKS NEW YORK, Oct. 13 of an old and respected stock exchange house uncertainties slowed up trading on the exchange and adversely influences prices which down one more than four points. Selling broke out five minutes after the opening when President Whitney announced suspension of the firm of Kountze Brothers for insolvency. Weak bond the failure, the explained Kountze Brothers was organized in September, 1870. Approach of British election, impending vote of confidence for Bruening government Germany and the Sino Japanese situation also were instrumental in slowing down activities. Railrad shares were among the first to meet pressure. down fractions more than two points and later extended the losses more than four points, neaviest lossbeing noted in Athison, New Yorw Central, Union Pacific, Southern Pacific and Baltimore Ohio. Steel common led the industrials down. The broke below against of 70 1/3. This decline was accelerated by the drop in unfilled orders revealed after the close Saturday. Today Dow Jones and Company timated Steel Ingot production for the week ending Monday at slightly better than per cent of the theoretical capacity. against about cent the previous week per better than 28 per cent two weeks Steel was estimated around 32 per cent against share over that figure week All leading industrials were down with steel. Losses of four points were noted Westinghouse Electric. General Electric, Allied Chemical, Du Pont, American Can. Woolworth more than two points. General Motors was off more than point its division. Case had substantial rally but Case came down later and lost more than two points for the day. United Press Close American Inter American Rolling Mills American Steel Fy. 10% American Sugar American and Anaconda Armour Atlantic Refinery Auburn Auto Bald. (1.75) 8% Barnsdall Bethlehem Steel Chesapeake and Ohio Chrysler Eastman Kodak Fisk Fox Film General Electric General Gas and Electric General Motors Continental Oil of Delaware Gulf States Steel Houston Oil Hudson Motor International and Montgomery Ward 11½ Nash National Air Transpt. Phillips Petroleum Prairie Oil and Gas Proctor and Gamble Pure Oil Reynolds Tobacco Royal Dutch Shell Union Oil Sinclair Skelly Simmons 10 Standard of New Jersey Studebaker Texas Corporation Texas Pacific Land Trust Oil Rubber Steel NEW YORK FUTURES NEW YORK, Oct. 13 closed steady Open High Close Oct. 6.06 Dec. 6.28 6.34 6.25 6.48 6.48 6.39 March 6.56 May 6.91 7.06 Spts closed steady at 630. up 35. NEW ORLEANS FUTURES NEW ORLEANS, Oct. 13 Cotton closed steady Open High Low Close Oct. 6.20 6.04 Dec. 6.38 6.39 6.14 6.26 6.48 5.23 6.37 March 6.47 May 6.62 7.04 6.95 Spots closed steady at 6.00, up 35.
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Cut in Bank Loans Reveals One Factor Behind Selling Drop in Loans by Federal Reserve Member Banks to Customers on Stock Collateral Shows Securities Liquidated to Close Out Obligations News Discouraging Wall-Street Correspondence of The Republican New York, Oct. 13-Foreign news and failure here of Kountze Brothers announced at opening of the stock market offset enthusiasm of Wall street over recent favorable domestic developments. The stock market opened heavy with selling continuing but with the volume smaller than in last week's excited trading. Regarding the unfavorable foreign over the holiday, Wall street that the German situation that Dr Schacht, former head of the Reichsbank, deait the situation blow below belt in statement regarding here out that most confidence on the part the people permitting the existing government effect drastic stabilization plans; that the German people without confidence the financial position their country less willing make the called for the recently announced government proPresident Harrison of the Southern Railway told the of that company at annual meeting today that felt the had railroad wages to cut in fairthe public shareHe his viewpoint should be much as recent cut officials. Harrison said that he had been but in no had expenses of the company cut as much as recently. comand not go to pieces; that was kept in good condition despite the earnings. One source recent heavy selling in the bond and stock market is made statement large the reporting Federal The statement published covering the seven days the gives loans on curities This item, which loans made by the banks to secured by stock no than vious and down Undoubtedly in some cases the banks refused renew maturing loans on stock market collateral with result that the securities sold and the loan paid. cases doubtless the reasons their off bank loans through sale the behind loans Reductions member banks loans made every Federal Reserve district with exception Member banks reporting to the Philadelphia Federal Reserve increased their loans from $402,the Federal Reserve district which York, the member reduced loans customers securities than from 000 These loans by member banks this Federal Reserve district up half the total reported for all banks. The hand shows compared with the previous in the the including reduction of in United government bonds and drop of $56,000,000 other securities held. The statement further shows decline $488,000,000 in net posits. Practically all decline occurred Federal Reserve district, decline of $417,000,000 in their and deposits. R. BARNUM.
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CITY FUND IN KOUNTZE BANK MAY SMALL If Bond and Interest Payments Were Complete, City Had Only $3,733.01 on Deposit In the absence of any official word from the receiver of the Kountze Brothers bank in New York. fiscal agency for the city Grand Junction and also Mesa county, City Treasurer William Sackett has been busy since the notice of the failure was received. preparing figures on the probable amount of the city's deposit. Mr. Sackett's figures show that if interest and bond payments due on before October 1st, were complete, the city had only $3,733 on deposit at the time of the failure. It all probable, however, that these payhad been made as many bond holders are slow in presentIng both bonds for redemption and interest coupons for payment. It is not believed at the city hall that the amount will be in excess of and this may be fully restored when the affairs of the bank are adjusted. City Attorney Adams has been very busy since the news of the failure was received. delving into the agreement under which the New York bank acted as fiscal agent for the city, to determine the liability of the bonding company, and other phases of the matter. Turn to Page 16, Col.
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LAST NIGHT'S COUNCIL MEET ROUTINE ONE Numerous Matters Disposed Of; Complication Bond Redemption by Kountze Bros. Last night's meeting of the city council proved lengthy one, many matters being considered. but th most important problems now pending. the 1932 were not dealt with being tax muddle and the valuations defOne matter of general Interest came in disa from Roettcher and Denbond advising that collection three bonds of to York of that check drawn against the account Grand Junetio payment yet which the and credit of Grand following the The the bonds had called for by an early fall They sent for ample funds for their redempThe received but reason the drawn in was not delivered to the bond house representative This state of affairs continued after the closing of the bank. The receiver then the bonds, cancelled the check again crediting this with the Payment by the city was re. quested, but was voted that no action be taken until further facts ascertained. There some discussion of again applying the city's appordonment of the state gasoline tax on the Mesa Lakes road. as was done last year. It is necessary that It be applied on a state highway which in this city would require its expenditure on either North avenue Fifth street. Last ear. in return for aid in the pav. ing North Twelfth street the fund was used on improving the road to the Mesa Lakes and the Grand A proposal for the purchase of the Patterson tract in the city airport presented before the council. but was referred to the finance committee after brief discussion. suit is now pendIng on this tract, cancel the lease on the allegation that a rental payment was not made in the time Mr. Patterson now to sell the tract the city for $5,000. payable years and $3,000 in three years. The was expressed that this price far too high. The land was also offered for period of three years $200 rental year. condition on the city purchasing the tract for $5,000 on or before the expiration of the Letters were read from Kansas City very highly for business integrity and business standing the men behind the United States Airways. Inc., which proposes to extend its line from Denver this using the local city air field as terminus The question of further payments for the high school band. for conserts given during the past summer was discussed. It was that $648 61 had been paid the band. and this was deemed sufficient by the members of the council An emergency ordinance was passed transferring $1,500 from the general fund to the highway fund to meet expenditures during the remainder of the present year. water frontage tax. passed annually. was enacted for the comng year This ordinance levies tax of four cents per front foot property on water main, ising about $6,000 annually to applied to the water fund. A resolution was passed making hargeable against the properties ivolved. the of cutting weeds ist summer where this was not done by the property owners.