New-York tribune., 1883-06-20
R.. H. PARKS G. CO. EMBARRASSED.

SEQUEL TO NICH0LSS FAILURE-THE LIABIL1-
TIES NOT AsCERTAINED-HsToRY OF THE FIRM.
The failure of r. II. Parks & Co. of No. 13 New
ST.. wellknown grain brokers and New York CORE
spondents of NJ. S. Nichols 6S Co., of Chicago, was
announced yesterday. Although 1t was unexpected
and reported to be the result of the suspension
of the Chicago house. the failure caused little ex-
citemept in Wall Street. When the notice Of the
firms inability to fulfil its contracts had been read
at the Stock Exchange some 1,700 shares Of stock
were bought and sold under the rule" for the
firms account. II was "short" apparently 800
shares of Jersey Central, 200 st. Paul. 100 Rock
Island and 100 Union Pacific, end "long" 200
shares of Rock Island. 200 Louisville and
Nashville 500 Reading and 100 Wabash preferred
1t is understood that short" " contracts about
1000 shares of Jersey Central were closed pri-
vately. Tho transactions in stocks were not large
enough to affect the market. and the liabilities of
the firm at the Stock Exchange will not exceed
$4,000 or $4,000. The amount of the other
liabilities the members of the firm said that they
could not possibly fix. Some of the large customers
are likely to be involved, but TO what extent could
not be learned yesterday.
The immediate occasion Of the failure was the
return unpaid of drafts on NJ s. Nichols g. Co., of
Chicago for over $4,000. Although the drafts
were dishonored on Saturday, they did not reach
New-York until yesterday. Mr. Parks said that he
did not knew until the drafts were returned to him
Yesterday that they had not been met promptly.
draft drawn by the Chicago firm Saturday
for $25, 900 was paid by r. II. Parks IL Co., on
Monday. On that day and during the morning
hours yesterday the New-York firm transacted bust
ness as usual with Chicago house. The return of the
dishonored drafts was followed at once by the sus
pensions of Parks e. Co.. and 1t was understood in
Wall Street that the failure was precipitated by the
suspension of the Chicago firm.
Concerning the failure K. II. Parks said: II sup
pose that have $40 for every dollar that owe,
but how can telli drew on Nichols for money
standing to my credit and the drafts come
back unpaid. l am obliged to suspend,
for do not know what shape
the Chicago firm is in am forced to fail to pro-
tect myself. am broken hearted and can say no
more" "You will quickly recover if the failure is
due entirely 10 the Chicago firm" the reported sug-
gested "l do not know" Mr. Parks replied. My
end of the business is all right and the drafts were
made in the regular course of business. Until
find out what Nichols Is going to do, cannot tell
what will become Of mo- The failure has hurt my
business pride i am all broken up"
The firm of r. II. Parks & Co.. Is composed of
Mr.. Parks, H. E. Dillingham; and c. G.. White who
i the Stock Exchange member ToT .bHT M Parks ses
and with his brother. who was a member
of the old open Board" entered upon the stock
brokerage business under the hrm name =, Z. &
X. H. Parks The firm failed, bat before the con-
solldation with tue Stock Exchange Z. Z. Parks
was reinstated by the Open Board; X. H. Parks
afterward went West, where he had bought tarm
and engaged in stock k-raisiug. He was unsuccessful
in this enterprise and having become interested In
the speculation grain at Chicago, he again came
to New-York about five years ago as the agent OF
NJ s. Nichols a. Co. He was the pioneer IN this
speculation in New York He gradually built mp
large business, which was extended to
include provisions, cotton and stocks. There
have been many changes In the firm in
the last three years. At one time NJ :. Nichols OF
Chicago was sPecldd parner TSs9 he be-
at the end Of the year, and Mr. Nichols retired OF
the present firm Mr. Parks Is a member OF the Pro'
duce and the Cotton Exchanges and the Chicago
BOARD of Trade; Mr. Dillingham; of the Cotton Ex-
change and Mr.. White OF the Stock Exchange.
The failure was not officially reported to tho Pro-
duce Exchange. although 1t was known at an car ly
hour There was little excitement IN consequence
of the embarrassment. as one OF the members said
there. adding: The failure affected the
Chicago trade considerably, and indirectly
il affected the trade here but there was no excite
nent July wheat, which closed last night at
I9l4c, at the noon call was lSi2c. bid August
wheat closed last night at ~ 4c. ana to-day at
2O7sc bid.D Said another member: " The elect or
the failure has been to depress the market some
what At one time the outlook was gloomy, not 80
much on account of this one failure. as because OF
the rumors Of several other failures resulting from
which were denied later when the market rallied.
Provisions have not been affected, but corn has
been lowered about 2 cents wheat from to I2
cents and flour from 10 to 20 cents" When asked
about the condition of the lard market a member
said that it was even mere healthy than before the
Mc(;eoch failure last week, and was not disturbed
by the failure of yesterday
! arm that did considerable business for Parks 81
Co on the floor of the Produce Exchange was Pat
terson Clah 6iCo., of No 43 Whltehall-st. MI Clan
said to % TRIBUNE reporter " We have private
wire between Mr.. Parks's Office and.ours and overit
this morning we received dispatch from him say
loo, hat draft for $50 900 Nichols Chicago
hal been returned 1 went up 10 Mr.. Parkss office
TO see htn but he not in. He has been dong
business again to-day, but all his deals here were
closed this morning. So he owes US nothing"