The Providence news. (Providence [R.I.]) 1891-1906, 1900-05-26
Slips Toward RssTglnIzaiIan Of The Firm
Have Already Been Taken.
ASSETS REPORTED TO BEs15,ooo,ooo
Entire Clerical Force b al Work and No In.Imaisn
Has Been 6usn Thai BUSINESS NlII
Be- Suspended

New York, May 26.-First steps were
taken yesterday by the firm OF Price.
Mccormick & Co.. the brokers who fail
ed Thursday for $lS.OoO.OOO to effect a
reorganization at once. Reports were
sent to the agents and correspondents
OF the firm stating that unless some
unexpected irregularity in cotton stocks
occurred the indebtedness would be
paid dollos for dollar. The liabilities
were said to be largely fictitious, being
20 large extent securities on mar
Is close TO the firm, said that the assets
would probably be found to be worth
$15,O00.000. The assignment was made
for fear that assets couldn't be realized
upon, though II is still held by at least
one member of the firm that the sus-
pension was unnecessary.
All,of the working force in the Office
has been retained. salaries have been
continued and no intimation has been
given any OF the clerks that business
would be suspended. Ii was said that
Messrs. Mccormick and crocker were
personally investigating the books OF
lhe company.
AT the office OF William j. Curtis, the
assignee. il was said that no statement
wound be given out at present, Tor the
reason that so many Drancn onces had
10 be heard from and investigated. The
assignee hoped, however. TO prepare
some sort OF statement for the credit
prs in day or two.
The extent to which Price, McCor-
mick & Co. built up their private wire
business through the country, especial
1y in the south. was considered one
OF the remarkable developments of the
speculative business of Wall street.
Theodore III. Price, the senior member
or cotton firm, was a member of a cot
ton firm In Norfolk before coming to
this city. His acquaintance through
out the south in a business way was
extensive when Price, Mccormick &
Co. started, but in recent years the
frm's business came into direct con-
tact with practically every cotton plant
er. ginner, shipper, speculator and
y merchant in the-entire south These
\ people were all kept in constant touch
Through the firms telegraph enterprise
with the market and the business they
brought back to the house in return
was vast and profitable one.
Many planters. ginners. shippers.
merchants and handlers of actual cot
ton In the south are inclined to specu-
late, usually for rise, and facilities
were always at their elbows to enable
them to follow their inclinations. The
information which they could give col
lectively. covering, as they did the en-
tire cotton region. about the crop, its
conditions and prospects was Of high
value TO those who speculated in the
product here or in Liverpool.
Thousands OF kilograms were often
filed by the firm in a single night. Ex-
3 for haI H1tfy NJ
telegraph offices when these big bum
dies Of messages were expected from
Price, Mccormick a Co.. and wages
Of messenger boys who were fortunate
enough to answer the call OF the firm
frequently mounted up as high as $75
q week. for they got two cents a mes
sage, whether II was one message or a
bundle OF five thousand turned over to
them by Price, Mccormick q Co.
At the cotton exchange yesterday af-
ternoon II was said that the indebted
ness there OF Price, Mccormick & Co.
Is hardly likely TO exceed $500. 900. II
was said also that the greater part of
the sum had been placed on deposit for
the cotton exchange creditors with the
Farmers Loan and Trust Company.
the Colonial Trust Company and Trust
Company OF America.
Theodore III. Price. the senior member
Of the hrm, was quoted as telling a
pay creditors 100 cents on the dollar,
and moreover, that II will resume.
Theodore Price OF the suspended cot
ton firm of Price. Mccormick e. Com
pany. says in regai> to the interview
with George Crocke.. cabled from Rome
in which Mr.. Crocker said the failure
in his opinion was caused by the pri-
vate speculations In cotton OF a MEM
ber Of the firm and unknown to the
other partners:
If Mr.. Crocker made such a state
ment as that IL was very unkind OF him
~ he Is not thoroughly acquainted
with the facts. We sent him a dis
patch at the time OF our suspension.
and he was probably irritated and
drew his own conclusions. This state
ment purported to have been made by
Mr.. Croker. is a great injustice TO the
other members OF the firm. Mr.. Crock
er was not thoroughly acquainted with
the firms operations up to the present
time. IL was but short time ago that
he returned from Europe. He held an
interest OF $500. 900 as special partner
and seldom came TO the Office am not
surprised at Mr.. Crocker's being sur
Drised over the failure OF our firm. for
II was great surprise TO me-"
When Mr.. Price was asked n IL was
true that a member Of the firm. un-
known tn the other partners. had sDe-
cu1atcd I'm cotton and II such n thing
wes net contrary 10 the rules of the
nrm. said:
I'm regard 10 that question. I have
absolutely no statement to make"
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