The Saint Paul globe., 1900-05-25
CAUSED QUIZ A PAN|C
FAILURE OF THE WELL KNOWN
COMMISSION HOUSE OF PRICE,
MCCORMICK & co.
COTTON EXCHATGE EXCITED
UNFORTUNATE FIRM HAD BEEN
LEADING BULLS IN THAT STA
PIE UNTIL CRASH
OTHER STOCKS ARE AFFECTED
Panicky Feeling Developed All
Around, Though No Other Fall
ures Were Announced as
Result of Big One.

NEW YORK, May A-Price, McCor-
mick & Co., one of the largest comn:s-
sion houses in the city today failed, with
liabilities estimated at $13,O0O,OOO. The
firm is member of the Stock, Cotton
and Produce exchanges, and a member Of
the Chicago Stock exchange, and has
branches In about thirty cities through
out the United States.
The failure is ascribed to the fact that
the firm was long in face of a fast falling
market. A notice on the doors of the
company referred all inquirers to w. J.
Curtis and M N Cromwell, assignees.
Mr.. Cromwell said late this afternoon
that 1t was impossible to make any state
ment at this hour concerning the condi-
tion Of the firm; that its business is very
extensive, and covers several branch
agencies. The total liabilities, he said,
are about $13,OO0.OOO, all of which was Sc
cured. He added that a statement would
be submitted to creditors at the earliest
possible date.
The firm Is composed of Theodore H.
Price. William Mccormick. r. G. NJ.
Stewart Wortley and Walter w. Price,
with George Crocker, Of San Francisco. a
SpeCld1 PAL lIlCI OII all 1llNCSlAINAA ~ VI SONN'
000 Mr.. Mccormick is Of the well-known
Chicago family of agricultural implement
fame, and Mr.. Stewart-Wortley is a SON
in-Iaw of Rear Admiral Schley.
The firm was organized Jan. 7, 1897.
OF the partners Mr.. Crocker Is now IN
Europe, and Mr.. Stewart-W Wortley is on
his way back from Europe.
Early In the day rumors were current
that prominent firm was in trouble, and
shortly before the official announcement
Of the suspension was made it was gen
orally known that Price, Mccormick &
Co was the house referred to. Prior to
the formal announcement the cotton mar
ket had broke over 20 points, under ter
rife selling for both accounts from all
directions.
The firm has long been regarded as the
leading supporter of the market and at
one time 1t was said they were going to
put August cotton up to 10 cents. The
declines of the past month, however, were
against them, and, despite their efforts.
they could not hold the market up. Con-
sequently today's developments did not
come as a total surprise, though they
had sufficient force to demoralize the
trade The firms bulIlsh attitude was
surmised on the cotton market, and it was
thought to stimulate The recent cotton
bearing.
PANIC ENSUES.
Following the failure the cotton mar
ket became panicstricken and broke 10
to 13 points. The decline from the highest
point when the bull movement culminat-
ed was 122 points. Later the market
steadied, but continued with very weak
undertone. under favorable crop reports.
The market at 1:45 o. M showed a net
1Cce. OP1 l. 70 4 r
from the extra depression.
Early in the day rumors were current
on the stock exchange that there were
some outside troubles. BY tbs time the
failure had been announced from the ros-
trum of the stock exchange the members
were prepared for the news. Nevertheless
it had its effect. There was a rush to
sell that carried prices down sharply.
There was a decline of about l per cent
in the standard railroad shares, and from
2 to 212 per cent in the balance Of the
list.
While the firm was also a member Of
the produce exchange, the effect there
was almost wholly sentimental. Accord
ing to the rule of the exchange, the sus-
pension caused the closing out of all the
contracts of the firm on the floor Of the
exchange.
Assignees William G. Curtis and Will
lam Nelson Cromwell make the follow
ing announcement regarding the failure:
ITO the creditors of Price. Mccormick
& Co.: Price, Mccormick & Co. have
been compelled to temporarily suspend
payment We ask and advise that cred
ttors holding stocks, bonds and other
collateral and loans, already well mar.
gined, hold the loans until reasonable op-
portunity be afforded the assignees to
deal with the same. that unnecessary loss
thereby may be avoided"
Price, Mccormick & Co. had an ex-
tensive wire service. and at times were
credited with doing as much busi-
ness as any firm on the exchange.
Most of the business was in cot
ton, and its senior partner and organizer
was formerly a member of the firm of
Hubbard, Price & Co. The firm controlled
most of the Southern stock business and
has been active at times in stock favored
by Southern operators, although this
trade has been less in volume than its
wire trade business secured from other
cities