The times., 1898-07-23
One of Washington's Old Brok-
erage Firms Gees Under.
A LOCAL FINANCIAL SURPRISE
The Failure OF Cors0n q Macnrtney
Regarded as Due TO the III Health
Of Ilre Surviving Partner-InvoIved
i'm the Senatorial Sugar Scandal
Assets and Liabilities.

one tne liabilities being given a : VOL. .la5. 35
and the assets as S96, ,09554 The cause of
the failure is stated by the friends of
Mr. John r. Mccartney, the sole member
Of the firm, TO have been his recent sick
ness and inability TO attend TO business.
The immediate cause of the suspension
was the pressure of a Washington credi-
tor, 10 whom Mr.. Mccartney could not
pay a large sum this week. There has
been a run on the firm for bank deposits
and ether accounts for the last month.
Corson & Macartney's has been for
many years one OF the most widely known
brokerage houses in the country, Many
Of its customers have been prominent
men, congressman and official people be-
longing 10 recent administrations II has
earned the name of the congressional
brokerage firm
The name Of the house went AL over
the country at the time of the great
Sugar scandal in the Senate. Mr. Macart-
ney refused 10 testify before the Senate
investigation committee as to what SEN
ators had speculated on Sugar through
his house. during the discussion on the
Sugar tariff when Sugar went up many
dollars share and made fortunes for
several senators, it is alleged. Later Mr..
Mccartney was tried with others brokers,
Sugar Trust people, and newspaper men
for contempt Of the Senate committee.
but escaped conviction.
Many famous names were still on the
firms books when the failure occurred,
though large number Of prominent peo-
pie did business with the house without
having their names appear.
has d wide acquaintanceship in this city
and in New York among business and
public men.
The failure Of the firm caused great
surprise everywhere yesterday, as it had
been supposed that its business was an
excellent one and Mr.. Mccartney a rich
man. Much sympathy was expressed for
his reverses and frequent hopes were eX-
pressed that he would soon be on his feet
again.
Mr. Mccartney has been in i'll health for
over a year He has neglected his busi-
ness largely and in aGG-t-0n has made
several unfortunate speculations that
have cost him thousands of dollars. But
his difficulties began long before his
health failed. He was the possessor Of
fortune variously estimated at from
quarter 10 a half million three or four
years ago His first heavy losses occurred
at the time Of the great Venezuelan pam
ic when the prices Of stocks dropped in
day several dollars a share, and many
stable firms went under all over America.
Mr. Mccartney lost some money on ms
own sDeculaUons at that time, but II
is said that many Of his largest custom
ers failed 70 margin their deals ana
caused him TO pay out maay thousands OF
dollars on their accounts
Mr. Macartney's trial last year in con-
nection with the Sugar Trust inyestiga-
ton also cost him large sum Of money
and several months time. IL is said that
the Sugar Trust paid the expense Of the
trial largely, but Mr. Macartney's own
share was heavy.
on the occasion Of the last great boom
in Sugar stock, Mr.. Mccartney was on
the wrong side Of the market constantly.
1t is supposed that for some reason the
Sugar Trust people must have mislead
him Intentionally with regard 10 this deal
while ne believed them stiu TO be his
friends.
The immediate financial embarrassment
Of the firm began about a month ago.
Anonymous letters were sent TO al of
its customers stating that the firm was
shaky and likely to fail At the same
time. also, two Of the old employees Of
the house resigned. A run on the bank
began and S70.000 was paid out in four
weeks.
II IS said by Mr.. Macartney's friends
that even as late as last week. if he had
not been too III to get over TO New York,
he could have made arrangements TO pay
up his pressing creditors and continued.
For six weeks, Mr.. Charles NJ Robin
son the assignee chosen, has been at
work on The books of the firm and endeav-
oring to make arrangements with credi-
tors 10 allow Mr.. Mccartney 10 continue
in business. On Thursday night it was
decided that this was impossible, and the
idea was given up.
Mr. John r. Mccartney came to Wash
ington twenty-five years ago from Mary
land He is only thirty-nine years old.
He was married in 1881 and founded the
firm Of CorsOn & Mccartney with Mr..
John Corson in 1852.
The firm did a large business from the
first. and soon became known as the
most prominent brokerage house in the
city For a long time the firm of Moore
q Schley. the weIl-known New York
house. was the New York correspondent
Of the firm. in 1891 Mr.. Corson died, ana
since that time Mr. Mccartney has run
the business alone.
During last winter Messrs. Moore Sz
Schley severed their connection with the
house. and Mr. Mccartney secured Van
Emburgh 4 Atterbury instead. Little
son for this breaking up of an association
Of such long standing. 1t is supposed
now that Moore d Schley must have sus-
pected that Mr. Mccartney was somewhat
embarrassed. 1t IS asserted by his friends
that the change Of correspondents did not
injure his business in the least, but that,
on the contrary. it was larger immedi-
ately after the change than il had ever
been before
Nv NTurar+r1aa- Eac Cg
lar and well-liked man during all his ca
reer in Washington. He is noted for his
generosity and charity and for his COM
panionable, pleasant qualities. An old
friend Of his. on + street. yesterday esti-
mated THAI he has given $50 600 10 charity
in the last fifteen years. He gave $500
few months ago 10 help build the new
Young Mems Christian Association build
ing. He has helped a good many men out
OF trouble and has started several on
prosperous business careers
MI Mccartney yesterday afternoon
nied his assignment with the recorder of
deeds Mr.. Charles NJ Robinson. a clerk
Of the firm, is made assignee, and Mr..
Samuel Maddox his attorney.
The statement OF assets and liabilities
gives the following as the creditors of the
company in this city. J. d. Ar
mold, sA,T5i Woodbury. Blair, $3.50:
!. NJ Bryan, president of the
Chesapeake and Potomac Telephone Com
pany, 65,099: H. s. Cummings. $500. NJ
Cumming, $1,000; Laura F. Mccartney.
$4,000; Q. G. Staples, sl,l20; Mary Van
hranken, s., 200; James Wilkinson. Sc. 472:
J. NJ Wilson, 81, SIS; W. B. Hibbs & Co, S..
06s: E. c. White, $1,000; Leroy Tuttle. So
200: Ferd III. de Janon, s16S9; Fred ID. Nc
Kenney. S71S; II. N. Moss 1882
Following are the out-of-town creditors:
b. 4. Abbott, GAINESVILLE Ohio S4e05:
Clarence NJ Rusr.h IIar,-xn,,rer Ion GOO