The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-12-13
SHORT" OF COTTON.
Marginal Clique Charged with Being
the Cause Of the Suspension.

The cotton market has recently been considerably
excitei In consequence OF advancing prices 10
IL said that clique formed TO put up the prices
OF contracts, and tins has been going on 80
persistently that several FIRMS seeing that II the
margins caused by the advance continued 70
increase utter ruin should necessarily follow,
resolved to suspend all operations and announce
70 the Cotton Exchange their inability to meet
tneir liabilities. The result OF this was that the
letters OF three prominent cotton houses were yes
'elaay 70 DO seen posted publicly In the Cotton Ex-
C""nSe' Aheir names were w. p Wright 4 Co.,
oloAcfs' oo STONE street, jeremiah ieaycraft mer.
chant, 10 Wall street, and Adolphus Schaefer n Co.
III Water street. The two first named fa,ad ON
Monday; Schacfer Co. failed yesterday.
HERALD reporter yesterday called on these gense-
men to ascertain the state OF their affairs From all
he could learn from them 1t would seem that fall
ures have occurrej more through fear OF more
serious difficulties occurring than from entire In
ability to meet their present liabilities.
Mr.. Schaener stated that his liabilities would
PROBABLY amount 70 about one hundred thousand
dollars. His asscta he thinks, viii probably cover
that entire amount, but he could not continue to
meet the increasing margins created by the clique
without danger OF complete ruin to his business.
His books are now being put in order, AMI his AZ
fairs generally VIII be ready for the supervision or
his creditors within few days. Mr.. SchaeGer had
no hesitation In saying That he could easily have
met all demands upon him up to yesterday morning,
but seeing tic persistent efforts of the so-called
clique TO keep mp the prices Of uturcsn above the
prices Of 'spotn cottons, he compelled to stop
business.
Mr.. Jeremiah Leaycraft was unable to give any ac-
curate statement to the amount OF Ills liabilities,
but believed that, when his books made mp, his
creditors would find he would pay hundred
cents on the dogs, The reason Of his failure was
precisely similar to that or Scnaefer & 70. The
actual liabilities for 1000 bales OF cotton-or
recently worked on-and. therefore, alnounr 70
about twenty thousand dollars TO avoid the In
creaslng margin ana to be able to meet his credit
ors 10 better advantage ne was obliged to suspend
business.
w. L. Wright h Co., brokers' state tnat their la
bhtes amount 70 ABOUT $4,000. The cause OF their
suspension was that merchants for whom they did
business failed to respond when called upon to
meet the margins OF the advance. Their creditors
number about thirty, and h III OF them met yester-
day at Wright n Co.'s once 60 examine the hooks
and decide whether or not they would accept the
firms offer OF ity cents the dollar, Those pres
ent signed the agreement ana the paper was, later
III the day, sent round to the other CREDITORS for
their signatures
Each OF the three firms expects to be able to re-
sumo business In day or two IL was said that
fraud was not Intended by any Of the houses as the
only reason OF their suspension was simply the de-
sire 10 protect creditors as well as themselves. They
say 1t was time TO stop when one man would buy In
q nay 1000 bales or December contracts at naif q
cent over December ''spot' cottons On Monday
"spot' cotton was 1870, while the 'contracts''
were Coke, thus squeezing the paper purchases
above the price OF cotton actually IN the market.
The three failures caused considerable talk IN down.
town business circles yesterday, especially as two
OF the firms have been each nearly thirty years Ia
the cotton business.