New-York tribune., 1900-05-29
ANOTHER FIRM GOES DOWN
ASSIGNMENT MADE BY SEYMOUR. JOHN
SON & co.
Mr. JOHNSON CHARGES BAD MANAGEMENT
AND SPECULATION ON MR. sEYMoUR,s
PART AS THE CAUSE


PART AS THE CAUSE
The stock. cotton and grain brokerage firm of
Seymour Johnson & Co, No Il Broadway,
made assignment yesterday TO Alfred Hayes
jr., who is associated with the law firm of COu-
dert Brothers. in the same building. No definite
idea of the probable assets and liabilities could
be had yesterday, but the failure Is regarded in
Wall Street unimpOrtant in comparison with
that of Price Mccormick & Co.. last Thursday
which appears to have had something do with
precipitating the troubles of Seymour. Johnson
& Co. The Street was not much startled or sur
prised when the suspension of Seymour. John
son & Co. was announced the Stock Exchange
and the Cotton Exchange yesterday morning.
for the condition of the firm had for several days
been rumOred to be precarious. Frederick W.
Johnson. senior member of the firm says that he
had believed until last Thursday or Friday that
the firm was in a prosperous condition. and
charges its embarrassment to mismana cement,
bad Judgment and speculation by his partner.
Henry A Seymour. The latter however, denies
that he had been specializing. The firm. organ
lied on March 20. 1899. Is composed at present
of Mr.. Johnson. the Board member, and Mr..
Seymour general partners. and DR.. David
Webster. the well known ocuIist. formerly the
professional associate OF the late DR.. c. r
Agnew. special partner. contributing 100000
to the firms capital
Seymour Johnson & Co.. while not one of the
largest houses in the Street. had shown much
activity and energy in getting customers and
had been or less successful in building
up wire business" Several months ago the
firm attacked week after week in the
columns of alleged financial sheet the re-
puted publisher OF which. who subsequently
| indicted and lodged in the Tombs a charge
Of hahn
against the Brooklyn Rapid Transit Company.
charged Seymour, Johnson & Co. with having
close relations with A. R Goslin. When the
failure Of Price. Mccormick & Co. was an
nounced last Thursday, Seymour. Johnson & Co.
sent notice TO the Stock Exchange that they
were financially solvent a step so unusual as TO
give rise TO much comment and rumor. generally
believed TO have been hurtfuI 10 the firms credit
1t is understood that banks which had made
loans to Seymour. Johnson & Co. insisted that
these loans be met yesterday. The firm had
taken in some extra business after the Price
Mccormick failure. and its contracts on the
Stock Exchange. together with the opportunities
of the banks. made it advisable that they should
declare themselves insovent.
Mr.. Johnson yesterday afternoon spoke as
follows about the failure of his hrm:
We have about $4,000 of loans, against which the
m o1nSs x mold &c coa5eTal which is margtned up 70 20
close them out as the easiest and simplest method
how. If there IS any additional amount necessary
b,iS;nsss ffoE w ne T1 Lp. IoT I[enq 20 resume
rumors affecting the firm following the Price-Mc-
garding firm, and tied up so that We could
not do business the floor. borrowing and lending
wish to say that the failure was due 10 Iome had
Judgment and mismanage nent and a little specu-
@ lstion m, on the part OF my partner don't care 70
the books enough 10 learn all about the situation.
This statement being read to Mr.. Seymour he
said: Il admit the mismanagement. but not
the speculation.
Then Mr.. Johnson came into the room. and on
being informed what Mr.. Seymour had said. he
exclaimed. addressing his partner: Isn't it so?'
Well you might as well let il go at that" re-
sponded Mr.. Seymour.
Later Mr.. Johnson made a supplementary
statement in which he spoke with some bitter
ness Of the course of Mr. Seymour He said:
had been away about three weeks on a bust
ness trip 20 the West and Mr. Seymour's daily
setIins along nicely Wnen got 10 Chicago last
week imagine my surprise 20 hear that every
praLy y ] was alarmed ana hastened back, getting
mere last saturday Il did not take me long 10
Our losses are about equally divided the stock
and cotton markets Leaving loans out of the
situation, liabilities likely much TO
exceed $OO,0Qe: The loans. If counted among
as have already said. we'll margined. can be
Which 10000 was Dr. Websters D and the balance @
Mr.. SeymOur's and mine 1 include my Stock
Exchange seat among the assets.
There is doubt that SeymOur's lack OF judg-
ment responsible for this trouble Our capital
is certainly wiped out. OF course. I shall break
with Mr.. Seymour. l hope TO make good every
dollar and resume business my account.
I have 10 around among friends
raise $4,000 S25,o,0 It's the old story. the firm
wrecked by the speculation OF a partner. Yes.
Mr.. Seymour. Seymour
a Sugar and other stocks
that TO be known bear house
Seymour formerly with Douglas & Jones.
The announcement OF the failure on the Cotton
Exchange was followed by an an-arOund break
Of several points. August cotton selling down TO
$50. after which there rally on covering
by shorts The firms outstanding contracts with
the cotton brokers are said to be small and well
margined.
The stock market was temporarily depressed
after the failure but the effect was not far
reaching, as it was felt that the firms commit
ments not very large. On the Cotton Ex-
change It was said that the firm had been heav-
lily long on cotton until fortnight ago, when II
swung around and took the other side.
The following stocks were closed out under
the rule" on the Stock Exchange for account
OF the firm:
SOLD
200 81. Paul
100 Peoria. Decatur Evansville.
500 American Sugar Refining
100 Atchison common
Metropolitan Railway
100 Baltimore and Ohio
T EDH nj PAM ~.d