New-York tribune., 1900-05-25
PRICE THREE CENTS.
FAILURE FOR MILLIONS.
PRICE, MCCORMICK & CO.
MAKE AN ASSIGNMENT.
SAID TO BE DUE To HEAVY OPERA
TIONS IN COTTON LIABILITIES
ESTIMATED AT S13OOOOoO.

startling surprise to all except a few I'm the
financial district. and which seriously affected
values on two of the important local exchanges,
occurred yesterday. when the well known stock.
cotton and grain brokerage firm OF Price. McCor-
mick & Co. gave notice to the Stock and Cot
ton exchanges of their inability to meet their
oohgations. and made assignment without
preference to William j. Curtis. of the law frrp
OF Sullivan & Cromwell. William Nelson Crom
weli' Of the same firm. later in the day issued
the following statement. In which he estimated
the liabilities OF Price. Mccormick G. Co .,,,.
enormous sum of S13,OOOOOO:
William Nelson Cromwell counsel for Mr. w
Curtis. the assignee that it is fmpract,caSs
at TINS hour to make any statement concerninS rhs
tendd onlion S OF the hrn Its business is very ex-
total liabilities are about saOOOo nearly ali Of
gagged with corps OF clerks will submit 20 cred
rSrs ITO, statement at the earliest practicable date
other collateral TO loans. and already well margtned
qnu bic opportunity be afforded the assignee
20 ueaI with the same and thereby prevent un-
necessary loss. ~
1t was not until yesterday morning that m
mors were heard in the Street that some bia
house. was in trouble. and even then tho house
was not promptly identified as Price, McCor-
mick & Co. The firm. however has for the last
year or so not mad the highest rating from the
mercantile agencies. and It was known TO soma
interests. especially in the cotton market. thar
its position not entirely assured for II had
been recently bullish on cotton. the nr,ce op
which had been rapidly declining The house
had for months been dealing heavily in cotton.
being. 1t is said. the most extensive operator ON
the local Cotton Exchange. and an Important
factor in the international situation. The gun.
eral opinion IN Wall Street was. yesterday. that
the failure was to be ascribed primarily tn re
verses in the cotton market. and that 1t could
In no sense be called Stock Exchangs
failure"
The list of securities bought and sold '.unde.
the rule' from the rostrum of the Stock Ex,
change yesterday shows the suspended firm to
have been long of the stock market to a much
| greater extent than it was short. Some surprise
was expressed that the number OF shares closed
out for account of the firm was not more than
| about forty thousand for it had been supposed
| that Price. Mccormick & Co. with their large
! local following and their many branch offices
| throughout the country. would be found to bs
| carrying full three hundred thousand shares OF
various stocks
PANIC ON COTTON EXCHANGE.
The announcement of the FIRMS suspension
| was received on the Cotton Exchange soon after
| noon. and caused scene OF panic such as had
| not previously been witnessed there since the
| collapse OF the attempted corner four years
ago. Everybody rushed TO sell. and all the
nearby options declined sharply. May cotton
| broke 60 points. from 923 to S63: July. from
S.72 to $40. and August. from S.53 to Sal. The
| distant months. however. declined not mors
| than 10 points Soon heavy buying orders came
| in from the strongest houses in the trade and
| this support gradually steadied the market and
| caused it by and by to rally
Price. Mccormick & Co.'S operations In cotton
| were extensive that at the Cotton Exchanges
it said late yesterday afternoon that moth
| ing more than approximate idea of their
standing could be given until after another
twenty-four hours. The firm dealt IN cotton
both ways. but their long interest is believed to
be at least hundred thousand bales greater
than their shortage
1t announced from the rostrum Of ths
Cotton Exchange not long after the notice OF
| suspension had been posted that the firm would
settle their contracts at the average price OF
| futures for the day.
| Most of the brokers and commission house,
| who had sold cotton TO the firm on contracts
resold their contracts. to protect their own In.
| terests and close their trades with the en-
| barrassed house Yesterday holiday In
| Liverpool. being the Queens Birthday. and not
little anxiety is felt to the possibility that
| Liverpool operators may to-day throw a mass
| of cotton into the local market Although the
Liverpool market was closed. there was heavy
selling here yesterday by foreign houses.
| 1t is said by prominent local cotton firms that
Price Mccormick & Co. have for months been
on the losing side. Their especial activity In
the cotton market began in August. a few weeks
before the price OF the staple began to advance
Taking the view that the crop would be small
one owing to drouth. they sent out commune
cations TO several thousand correspondents IN
the cotton States. advising them to hold their
cotton for better prices. and to buy futures for
rise. and themselves. 1t Is understood. pur.
chased several hundred thousand bales
Supplies abroad were small. the foreign spin
ners refusing 10 buy here az prevailing prices
Henry NJ. Nein. OF New-Orleans. published or
October IL. that the years crop would not b.
less than eleven million bales In Novembel