The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-05-24
BROKERAGE FIRM Fails
Price, Mccormick & Company Go
TO the Wall.
Their Suspension Announced on the
Stock Exchange at NoOn-Specu-
lated Heavily In Cotton and Were
Unable 40 Meet Their engagements.
Assets and Liabilities Not Stated


had then been posted on the door of their
Office, and at the same time it was stated
that Sullivan & Cromwell, 45 wall Street,
were the assignees.
The suspension was not wholly a sur
prise. To part of Wall Street in the Stock
Exchange community, it was, however,
although during the morning there were
rumors in the Cotton Trade that a promi-
nent firm was embarrassed. At the same
time it was added that the trouble was
only temporary and not serious.
Thus far the season had been a pros
porous one. and the firm was repo- ted 70
have cleared considerably over 81, Coz, 600
on their cotton deal. During March a de-
cline took place, and prices touched 3-4c.
! cents. Ii was from this point on that the
firm made their mistake. according TO mem
bers OF the Cotton Exchange.
Early enquiry at the Office of Sullivan &
Cromwell did not bring forth statement
OF the firms assets and liabilities, as the
two gentlemen named were aot IN, but
were out presumably at work on the sus-
TensiOn. statement the repre- sentative Of
, ae firm said would undoubtedly be made
later in the day
Theodore II. Price. the senior member OF
the trm, declined 20 make any statement
and referred everyone. even his friends
to the assignees. II is believed, however,
that the liabilities Will be heavy. as the
firm transacted a very large business. and
was represented on the Stock Exchange
Produce Exchange, Cotton Exchange. and
Chicago Board OF Trade Il possessed prob-
ably the most complete and extensive pri-
vate-wire system in the country. and its
connections with branch Offices throughout
the country were large.
Since August Of last year the operations
Of the firm have attracted the attention OF
cotton men, both in this country and
Europe Believing that the cotton crop
would be a small one. ewing 10 drought
| ne firm established communications with
S,Cct TO 4,CV0 correspondents in the lotion
belt, and advised holding cotton for high
er prices as well as purchasing futures for
| q rise.
kilograms and postal cards flooded the
south, bearing the name Of the New York
hrn, and hundreds OF thousands OF bales
Of cotton were purchased when prices
ranged from > ID cents 70 6I-2 cents a
pound Supplies abroad We're small. foreien
spinners refusing to believe ,he crop dam
axe talk When Europe commenced to buy
! in January, Price, Mccormick q Co. sold
! thousands Of bales Of Gotten all ;he way
from 10 1-2 cents.
Throughout April and May this policy
was pursued until about the only business
! done - the local exchange was BY Price.
Mccormick & Co. While the extensive
| buying was In progress a promineu: Phila-
| delphia cotton house began 10 concentrate
| its operations in August cotton and on the
short side Of the market. Relying upon
| the less active demand for cotton fIou
| American and European spi1ners. other
| firms began to get short Of August. Until
the short interest IN that option proved
| too large to support.
II was announced from the rostruul Of
the Cotton Exchange shortly after p. m
| that Price, Mccormick & Co. would make
! heir settlement on the average price of
| i'iay's quotations.
The firm OF Price, McCornicE & Co. was
| organized on January 2, 1897, aad Theo5o g
| Price was its leading spirit. Associate 7
| with him were W G.. Mccormick. of CHI
| cago who is related TO the Mccormick. OF
| reaper fame; r. VI. Stuart Worthley. who
| is SOn-ln-laW OF Rear Admiral Schley
| and Bernard j. Harrison as general part
| ners, with George CTocker. the California
| millionaire, as the special partner
/ New partnership articles were entered
| into last fall, when Bernard J. Harrison
| retired and Walter ". Price a brother CT
| Theodore II. Price, was admitted to the
| firm.
Mr.. Crocker's interest was increased last
| fall TO $780, 0O0. The capital OF the firm
was probably $1,000. COO Mr. Mccormick =
interest is heavy, for he has been in the
business for long time and always On a
| large scale. The Stock Exchange members
Of the firm were Stuart Worthley and Mr..
| Mccormick. The latte. however. was not
an active floor member, as most Of the
/ business was transacted by Mr. Stuart
Worthley and several outside brokers.
A rather strange incident in connection
| with the failure is that Mr.. Stuart Worth
! ley sailed for England about four weeks
ago and is due to arrive in this city to-
| morrow.
The branch offices Of Price. Mccormick G,
! CO.. and their managers were as follows:
| Newark, N j., w. F. Muth; Ogdeusburg
n Y, d. H. Lyons Rochester. " Y
George B. Dresser; Pittsburg. Pa. S. n
| Dyer; Chicago. ". G. Mccormick; Syra-
cuse, c. NJ Bachman, and Albany, F. II.
| Hagadorn.
Up to $40 o'clock 1920 shares Of stock
had been traded il on the Stock Exchan ge
| Tor the account of the firm. The doors OF
! the firm Office were closed at I O'Clock to
| all visitors. and the clerks. with the as
| slgnees, were very busy Strengthening up
| the accounts.
Wall Street took the suspension very
calaly, although there was a dispcsitio II
| circulate rumoTs about other firms " IN
| scrUuUlOus rUmor mongers.
| y uuAuDGL Ol messages OF sympathy and
| regret were received by Mr. Price wao has
\ large number of friends in this and other
| cities. Customers who called at tie Office
were referred to the lawyers at IS Wall
| Street. The firms interest were very di-
yersihed and that was responsible for un-
usual interest in the failure outside OF its
magnitude.
Shortly after O'Clock Seymour. johnson
& Co. addressed a letter to the Stock Ex-
change. which was read from the rostrum
The letter stated that he firms financial
affairs were in excellent condition. and ru-
mors to the contrary were unfounded.
The brokerage house Of Ffoulke e Co
Of this city, having offices in the Hotel
Chamberlin, were correspondents of Price
| Mccormick & Co. until few weeks ego.
when they withdrew their connection with
| the firm and became the correspondents
| of Sweet & Co. II is said that their sf-
| fairs with the defunct concern were en-
| tirely settled up, and that they will not be
affected in any way by the failure.
| Price, Mccormick d Co. have had other
correspondents in Washington az lifferent
| times, and frequently their Washington
business has been very large. though il has
| p2t compared with the tremendous liter
ests Of the company in other cities. The
| local gossip regarding the cause of the fail
ure was too heavy speculation in wheat and
cotton.