Barre evening telegram. (Barre, Vt.) 1898-19??, 1900-05-25
BIG BROKERS SUSPEND
Failure Of Price, Mccormick 4 Co. An
~. n0unccd In New York.
HAD BEEN BULLS ON COTTON,
Got Caught In the Decline Of the
Market. Which Had Been Semi.
panicky Since First Of
the Week

New York, May 25--Pricc, Mccormick
u Co., bankers aud brokers Of 20 Broad
way, announced on the Stock Exchange
that they were unable to meet their en-.
| gagements. Notice of the suspension
had then been posted on the door Of their
office, and at the same time it was stated
Mat W. j. Curtis and W. N. Cromwell
of the law firm Of Sullivan Il Cromwell,
40 Wall street, were the assignees.
The suspension was not wholly sur
| prise. To part of Wall street, the Stock
Exchange community, it was, however,
although during the day there were ru-
| mOrs In the cotton trade that a prominent
| firm was embarrassed. AT the same time
| it was added that the trouble was only
temporary and not serious.
Operations in cotton are believed to be
responsible for the suspension, as the
senior member of the firm was bull on
the market which has experienced severe
declines extending to about 2 cents q
pound, in the last few weeks. In fact,
the cotton market has been in n semi
panicky state since the opening of the
week. and holders of long cotton have
sustained heavy and in some cases, as in
this one, serious losses.
the firm, declined to make any statement
and referred every one. even his friends,
to the assignecs II is believed, how
ever, that the liabilities will be heavy,
as the firm transacted very large bust
ness and was represented on the Stock
Exchange, Produce Exchange, Cotton
Exchange and Chicago board of trade.
1t possessed probably the most complete
n md L.
country. and its connections with branch
offices throughout the country were large.
Break In Stocks Follows.
The stock market broke when news of
the failure became known. but subse-
quently rallied when several thousand
shares were traded in under the rule for
the account of the suspended firm. There
was tremendous excitement in the cot
ton pit when the report of the failure
was verified, and heavy general selling
ensued, under which the August option
declined from SOB to $40 with scarcely
check. New Orleans and Europe were
heavy sellers on the break.
1t was announced from the rostrum of
the Cotton Exchange that Price, McCor-
mick 4 Co. would make their settlement
on the average prices of the days quota
lions.
The firm of Price, Mccormick & Co.
was organized on Jan. .. 1897. and Thco-
dore Price WAS its leading spirit. Assoc
ciatcd with him were w. G. Mccormick
of Chicago who is related to the McCor-
mick of reaper fame; r. NJ Stuart
Worthley. who is son-inlaw of Admiral
Schey, and Bernard j. Harrison as gen
eral partners, with George Crockcr. the
California millionaire, as the special part
ner.
New partnership articles were entered
into last fall when bernard ]. Harrison
retired and Walter w. Price, a brothe,
of Theodore Price, was admitted to the
firm.
Mr.. Crocker's interest was increased
last fall to $500.O00. The capital of the
firm was probably $1.OOO,OOO Mr. Nc
Cormick's interest is heavy for he has
been in the business for long time and
always ON n large scale
Since August of last year the opera
tions of the firm have attracted the at |
tention of cotton men both in this coun
try and in Europe. Believing that the
cotton crop would be Il small one owing
to drought, the firm established commu.
nications with 5000 or 1000 correspond
cnts in the cotton belt and advised hold
ing cotton for higher prices as we'll as
futures for II rise.