New-York tribune., 1883-06-20


SUSPENSION OF NJ S. NICHOLS & CO.
THE LARGEST WHEAT COMMISSION HoUsE-sTEADf
FALL IN THE PRICE OF WHEAT AND CoRN-
ALMOST A PANIC.
rBY TELEGRAPH TO THE TRIDUNE.i
CHICAGO, June 19.-The severe drop ID wnea''
which was quite inexplicable to most people yes'ei
day. was easily accounted for this morning when IL
was announced that Robert Parks o. Co., Oh new
York had failed, and that NJ. S. Nichols & 20. had
also stopped putting up margins and had closed out
their trades The predictions of the pessmists
who since Saturday have been croaking that
McGeoch's failure was only the beginning
of failures that would continue to be
reported until the false bottoms had fallen
out of wheat, corn, pork. lard and every
thing else on the lists, were certainly now
everybody thought to be realized. The news OF
Nicholas suspension preciptated q panic that was
only alittle less alarming than Saturdays. 1t did
not cause such tremendous depression IN properly
for several reasons. Wheat has not been 30 ex-
orbltantly high lard neither has corn and oats
While provisions were seriously affected they had
tumbled ON Saturday so far that there was less
distance for them to drop now, no matter what the
provocation. But while the fluctuations were not
no exaggerated and consequently not SO
disastrous On the other hand this 1ali
in prices came upon men who hau
been weakened by earlier losses and who lhad tlost
part of their courage and good deal their ability
to Withstand the shock
THE FALL IN PRICES.
Besides the tension has been all the while in
creasing here. drop of cents in wheat a week
ego would not have been so serious matter but
wheat has been dropping steadily day by day for
fortnight until to-day July wheat, which not many
days ago was going 81 is, dropped to 81 1872 July
corn which was some weeks ago at 90 cents sold as
low as 53la II was the slow depreciation
in values which has been steadily going for
fortnight as we'll as the very sudden depreciation
of between and cents a bushe within the last
forty-eight hours, which made the situation in
wheat on Change to-day perilous. Nichols & Co.
were called" last night and yesterday 10 per
cent upon almost all the trades they had open.
There was some little alarm over the house because
1t was known it had called" McGeoch, no mar
gins. and had been stuck over 100000 by the
Scotchman's failure. Nichols & Co. when called"
yesterday promised to respond to all the calls,
but began selling out grain and provisions at a
furious rate. Those who were in the firms Office
during the day noticed especially that the orders
which came over the firms special NewYork wire
which connected its Office with Z. NJ. Parks's New
York Office were heavy. The orders came by the
dozens TO sell out 100000 bushe lots of wheat and
corn. This selling continued only on more
gigantic scale until near noon to-day, atwhich hour
il ceased Meanwhile the firms which had called
margins last night discovered that the calls had
net been answered. Upon asking the reason
thls neon 1t was answered that the firm had stop
ped business but that 1t had closed its deals and
weuid pay its difference as soon it could figure
them up,
EFFECT OF THE FAILURE.
The news of the firms suspension got out a little
before Its public announcement, but net much.
The secretary of the Board of Trade announced on
'Change that NJ s. Nichols Co. had closed out all
It's trades and was exactly even on the market and
had secured funds enough to pay dollar for dollar
great deal of excitement naturally fol-
lowed and wheat declined 1l2 a cents a
bushel and corn cent bushel, but the panic did
not reach the height it would had the firm ordered
its trades closed instead of closing them quietly
itself.
MS Nichols & Co. have done the largest commits
sion business of any here. Men connected with the
Office say that for the past seven months there have
been from 5000, 900 to 100000 bushels of grain
upon its books besides provisions in like proper
ton. 1t is the only house in the trade which has
had special wire between here and New-York. a
luxury which has cost it $50 per day. r. II. Parks
a. Co., of New-York, has sent all its business TO
Nichols and besides, the firm has had branches all
over the country-in Boston, Philadelphia and in
scores of other cities. 1t has been
the tradition here that the commission business of
n. s. Nichols d. Co. worth $250,000 year.
1t certainly larger than any other, aud the firm
has ranked among the very best. 1t has been set
down as conservative, worth not less than
81, 600 000 Even to-day, notwithstanding its sus-
PENSION the belief general that Nichols Is abun-
dantly able pay in full and that hspublic promise
TO do so will be fulfilled. The failure was caused
partly by the very heavy loss through McGcoch
otaIo TO-
600, but the loss was not more disastrous than
the attacks which the knowledge of this
loss caused to be made upon the concern. Calls were
made Saturday and Monday upon the house for
$3.50. 900 margins and this was a very large sum to
put up. Undoubtedly Parks & Co.'s failure at New |
York preciptated tie event. and when the affairs
Of the concern arc all settled Nichols will undoubt-
sdly figure as a creditor of the New-York firm.
THE CAREER or PARKS.
Parks is we-knowns He was here for years and |
cut no figure. and had no money before |
Nichols sent him to New-York as his repre-. |
sentative. He was a hale fellow, however, and |
succeeded there. bob Parks" said veteran |
Board Of Trade man, has ruined Nichols |
just as always presumed he would. Bob is
hsic fellow we'll met but as reckless mar as draws
breath. He has organized agencies all over the
country where blackboards have been posted and |
tckers introduced and with the managers OF winch
ne has divided commissions IL made mo @ vast
Sums OF money when trading was smooth. lie Iiyed
IKE prince in New-York and spent, IL Is SAID.
$4,000 year in his living. II such times az
tnese However such trade means sure bsre
~ Chicago 10 get his margins ap. DO you
suppose ne could get the money from his customers
IN any such tinef Pm sorry for Nichols tnink
he IN ali right and that be will pay IN full learn
that he has decided TO do so large and hazard
GUS business again. Indeed know that he has
been trylng to cut it down for long whilep 1t is
sad On good authority that Armour again came 70
me rsscne OF the market today ana took a sne