The Topeka state journal., 1900-05-24
CRASH IN COTTON
Price, Mccormick & Co. Fail For
Millions.
Panic in Wall Street Follows
the Announcement.

New York, May 24-Announcement
Of the failure of Price, Mccormick &
Co. was made today by the chairman
of the New York stock exchange. The
firm consists Of Theodore H. Price. W
G. Mccormick r. NJ. Stewart -7Vortley,
Walter w. Price and George Croker.
the latter a special partner The firm
was one of the most active and had
large out Of town connections. The spe-
cial partner, Croker. is of the wealthy
California family of that name. The
announcement Of the suspension Gre
ated great excitement on the cotton ex-
change and led to general selling, un-
der which August dropped from 853 to
$40. New Orleans and Europe were
conspicuous sellers on the break
Today's development on the cotton
exchange marked the elimination of
one of the biggest bear movements
ever recorded. Previous to the suspen-
sion of Price, Mccormick & Co, the
market had broken over 20 points IN
der terrific selling for both accounts
| which came from all directions Au-
gust the most active option, broke from
S45 to S3S, and after having rallied to
S5S fell to $40, when the failure was an
nounced. The Liverpool market was
closed, but this fact appeared to have
no effect in restraining speculation. The
excitement was intensified early in he
afternoon by rumors Of other firms be-
ing in financial straits.
Price, Mccormick * Go have long
been regarded as the leading supporters
OF the market, and at one time it was
said they were going to put August spot
cotton to 10 cents. The decline of the
| past month was against the firm ard
/ despite their efforts they could not hold
! the market up Therefore today's de-
/ velOpments did not come as a total sur
prise though they had sufficient force
/ to temporarily demoralize the trade
| The extent of the failure is not known,
! though it is believed the firm materially
reduced its holdings during the last few
days.
The firm is one of the most prominent
! IN the street and was said to have been
| long of cotton in the face of a fast fall
| ing market.
While it is impossible to get any def
mite figures, various firms in Wall street
! place the firms loss in cotton at from
one to thirteen million dollars
On the doors of the Offices of the firm
| notice was posted referring all in
! quirers to VIM. ]. Curtis and VIM. N.
| Cromwell, asSignees At the office of
! the assignees it was announced that q
formal statement of the assets and liza
/ bilties of the firm probably would be
made later in the day.
/ Mr.. Croker as special partner, it is
understood contributed to the firm $500
| 900 special capital. The present firm
was organized January 2, 1897 Up to
/ half past 1 o'clock II, 200 shares of stock
had been sold and bought under the
| rule of the stock exchange for account
of Price, Mccormick e Co.
Mr.. Mccormick is a member Of the
| Chicago family of agricultural imple-
| ment fame.
R. M. Stewart-Wortley is a son-in-
law of Rear Admiral Schley The firm
| has large out of town business
Following the announcement of the
failure the cotton market became panic
/ stricken, and broke to 10 to 13 points
| The extent of the decline from the
highest price. when the bull movement
eliminated, has been 122 points. Other
! failures were said to be impending,
with the name of one prominently men
toned, but this has been since officially
contradicted. Later in the session the
market became more quiet, but con-
tlnued to show weak undertone on the
generally very favorable crop accounts
The market at 1:45 p. m. showed a net
loss OF 10 to IA points, having recOv-
cred from the extreme depression
Boston, May 24-Price, Mccormick
q Co. have several branches in New
England. At one time they had a wire
agency IN this city but of late the lOca
business has been transacted through
various brokers' houses, including the
firms of George A. Fernald & Co, Hay.
den, Sloan & Co, Towle & Fitzgerald
Lee, Higginson & Co. and others. Al
Fernald & Co.'S Office this afternoon i
was stated that Price, Mccormick &
Co.'S account with them was very
! small