The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-05-25
FAILURE Of PRICE
MCCORMICK & CO.
Liabilities Estimated at $l3,-
O0c, GOO, Secured.
FIRM LONG ON COTTON
1t Was Unable to Liquidate in a
Swiftly Falling Market.
FAILURE CAUSED A PANIC IN THE MARKET
Cotton Broke Ten to Thirteen Points But Later
in the Session Recovered From the Ex-
IRENE Depression. Beg Credi-
tors For Time.
tors For Time.
(By the Associated Press.)

(By the Associated Press)
New York, May 24.-Price. Mccormick
&c Company, one of the largest brokerage
houses in the city, failed today with liza
bilites estimated at $13,0O0,OO0 The firm
is a member of the Stock, Cotton and
Produce Exchanges, and of the Chicago
Stock Exchange. and has branch offices
in about thirty cities throughout the
the fact that the firm was long of cotton
in the face of fast falling market. A
notice on the doors ofSthe offices of the
company referred all inquirers to William
J. Curtis and William N. Cromwell, as
signees. Mr.. Cromwell said late this
afternoon that it was impossible to make
any statement at this hour concerning
the condition of the firm; that it's business
is very extended and covers several
branch agencies. The total liabilities, he
said, are about $13,0OOOOO, nearly all of
which was secured. He added that a
statement would be submitted to credi-
tors at the earliest possible date.
Price, William G. Mccormick, r. G. NJ
Stewart Wortley and Walter w. Price
with George Croker, of San Francisco,
a special partner, on an investment of
$500, 600 Mr.. Mccormick is of the we'll
known Chicago family of agricultural i'm
plement fame, and Mr.. Stewart-Wortley
is son-in-law of Rear Admiral -Schley.
The firm was organized January End, 1897.
Of the partners, Mr.. Crocker is now in
Europe and Mr.. Stewart Wortley is on
his way back from Europe.
Early in the day rumors were current
that a prominent firm was in trouble, and
shortly before the official announcement
of the suspension was made, it was gen.
orally understood that Price, Mccormick
q Company was the house referred to-.
Prior to the formal announcement the
cotton market had broken over twenty
points under terrific selling for ac-
counts from all directions The firm has
long been regarded as the leading sup
porter of the market, and at one time it
was said they were going to put August
cotton up to 10 cents. The decline of the
past month, however, was against them,
and despite their efforts they could not
hold the market up. Consequently today's
developments did not come as total sur
prise, though they had sufficient force to
temporarily demoralize the trade.
The firms bullish attitude was sur
missed in the cotton market. and it is
thought to have SITUATED the recent ac-
tivities of cotton bears.
Following the annoursemSnt of the
failure the cotton market became panic
stricken and broke 10 to Is points. The
extent of the decline from the highest
price when the bull movement culmin-
ated has been 122 points.
Later in the session the market became
more quiet and recovered from the ex-
treme depression.
Nevertheless it had it's effect. There
was a rush to sell that carried prices
down sharply. There was a decline of
about l per cent. in the standard rail-
way shares and from to 21a per cent. in
the balance of the list.
While the firm was also a member of
the produce exchange the effect of the
failure there was almost wholly senti-
mental.
According to the rule of the exchange
the announcement Of the failure was fol-
lowed by the closing out of the suspended
firms outstanding contracts on the floor
of the exchange. Up to the close of the
exchange the dealings for the firms ac-
count footed up 1880 shares.
Assignees William j. Curtis and Will
liam Nelson Cromwell make the following
announcement regarding the failure
ITO the creditors of Price, Mccormick e
Co.:
Price, Mccormick & Company have
been compelled to temporarily suspend
payment. We ask, and advise that credi-
tors holding stocks, bonds and other col
lateral to loans. and already we'll mar
gined, hold the loans until reasonable
opportunity be afforded the assignees to
deal with the same, that unnecessary loss
thereby may be avoided"
Price, Mccormick & Company had an
extensive wire service, and at times
were credited with doing fully as large a
business as any firm on the exchange.
The representatives of the firm on the
exchange were r. M. Stewart Wortley,
w. G. Mccormick and George Croker,
the special partner Much of the business
of the firm was in the cotton exchange at
first, and it's senior member and or
ganizer was formerly of the firm of Hub
bard, Price and Company. At that time
the older firm had large Southern bust
ness. The present firm controlled much
of this Southern stock business and has
been very active at times in stocks ia
vored by Southern operators, although
this line of trade has been far less in
volume than its regular commission BUSH
ness obtained through it's wire service to
outside cities.
OFFICERS IN NEW ENGLAND.
Boston, Mass, May 24.--Price, McCor-
mick G. Co. have several branches
in New England. At one time they had
a wire agency in this city, but of late the
local business has been transacted
through various brokers houses, including
the firms of George A. Fernald & Co.,
Sloan. Hayden C Co., Towle and Fitz-
gerald, Lee Higginson G Co.. and Others
The Fernald firm stated this afternoon
that Price. Mccormick & Co.'S account
with them was very small.