Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1900-02-22
Have Made an Assignment For
Benefit of Their Creditors.
Firm Attribute Their Embarrassment
to Recent Panicky Condition OF the
Stock Market and Claim That
Their Customers Will Not Suf-
fer Serious Loss.

! ness III TINS city as commission merchants
! ana brokers. did not open their doors for
business Monday morning, having made an
assignment of their business for the bene-
fit of their creditors. In statement made
by Mr.. Knott for the firm to a Free Press
reporter sunday he attributes the pres
/ tnt embarrassed CONDITION of the finances
of the firm to the paniCky condition of the
market during recent weeks. The firm has
/ been carrying heavy margins for many
of its customers and as a result the rapid
fluctuations of the market, especially IN
cotton, in which the firm dealt heavily,
have resulted in financial embarrassment.
A few of the firms customers signed u
1 petition placing the firm in bankruptcy Mon
day and the work of examining into their
business condition Will begin AZ soon
possible The liabilities of the firm are es-
timated to be not over $O,N0 They are
the largest stock brokers in Vernon, and
are said to nave been the heaviest dealers
H. cotton in the East, during it's recent
fluctuations. outside the large stock ex-
changes Mir. Knott has been in business
in this city for about IA years. Two Years
ago G.. l.. C.OSSOn, jr., came to this ClE
from Springfield. Vt. and is reputed TO
have paid twenty thousand dollars for "a
one-third interest in the firm of
which he has since been a partner. 1t is
stated that if it had not been for its re-
Verses in the cotton trade, tn" sharp re
auctions OF which caught many OF tho
FIRMS customers, Knott d Closson would
have to-day been worth one quarter
a. a million follar RS Mr. Knott returned
Sunday from New York. where he had
h,.n. in an attemnt to tide over the crisis
I'm, i'm which ne was unsuccessful. lie
found a brokerage firm in that city which
is willing to accept a transfer of the bus
mess and a member of the firm is expect
ed in this city this week to examine into
the business of the firm with a view of
purchasing it,
Mr. Knott states that fully - per cent.
of the firms creditors are non-residents
Of the State and that fully % per cent
have received back all of the money in
vested through the firm and added 100 per
cont of nroftt lie also stated that since
1853 he had been doing y business with
the banks Of this CITY and State exceeding
= s. Ooo. nd0 and that during that time not n
note or check Of his own or Of the firm
= had over gone 10 protest. While he is not
: optimistic i'm the matter Mr.. Knott is
confident that tho business can be dispos.
Ell Of at a price that will insure the pay-
mont of nearly 100 per cent. of it's liabili-
ties
% Not a large number of tho FIRMS cus-
toners during recent months have been
residents of this CITY There are some
who have traded ouitc heavily hut most
Of these arc able to bear the loss which
they will sustain II is sunnoscd that :,
corrric Of customers Of The tirrn from
canada will be cutie heavy losers undar
TN. failure These traders were laroelv in
, u FcSted IN cotton.
IL Is sald ny one OF inc hrm CUSTOM
erS that Bennington Battle Day was re-
snonSlblc loF some heavy losses to tire
= firm on cotton. During that afternoon cot
. ton fell rapidly in price on the New YORK.
exchange. This fact was wired 10 tho
5 iirm in this city but they were not dong
business as it WAS Il holiday. Soon the
= iall in cotton became alarming to their
New York representatives, who wired that
. margins must he put up at once on The
cotton held by the firm or it would nave
to be thrown upon the market at a heavy
loss. The local firm had plenty of money
l III the banks here and elseW here in the
State, but it beirg a holiday they We Q
CLOSED and none of the officials could he
found. Cotton continued to fall and Il few
minutes before the close of the market a
. peCemptory demand for margins was
made, and the explanation of the holiday
i'm this State being unaVailine the cotton
| was sold out at a very heavy loss
The firm maintain an Office I'm the Wood
q bury x Walker block Hero they have n
/, telegraph operator who receives the New
q York and other quotations which are plac-
4 ed unon a bulletin board for the custom
= prS business is thus done at n distance