New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-20
SUES FOR TWO BILLIONS
T. II. Price Wants alleged Damages
from J. II. Parker s Co.
THEY DENY THE CHARGES

As an outcome of the failure of Theodore H.
Price the cotton Spectator. to corner the market
last fall he has brought suit against James H
Parker Richard a Springs and William D. Mar
tin composing the firm of j H Parker & Co..
commission brokers of the Cotton Exchange. to
recover s2O0oOO9 damages for the alleged CONVEX
s;ons Of contracts for the purchase and sale of cot
ton and of certain securities and money deposited
with the defendants as the plaintiffs brokers. The
case came I'D yesterday in the Supreme Court
BROOKLYN on q motion for a change Of venue to
Nevy-York County. 1t was granted
The alleged transactions occurred between Au-
e,,st 10 1902 and December 20. 1902 and represent
cotton TO the value Of about S59000.000. Mr.. Price
says he entered into an agreement with Parker q
Co by which he employed them to act as his
brokers The transactions to be what are
known in the market as -'stradde ctOns
that is purchases Of contracts for delivery in one
month to be balanced by sales for delivery in an
other month and vice versa. Mr.. Price declares
that his object was to hold the contracts until he
could resell at profit or receive the cotton so pur-
chased at the delivery rates and hold until he
could sell at profit. He declares that the de-
PENDANTS were fully aware Of his intentions. and
purchased and held for his account $500 bales of
cotton for delivery in New-York City In January.
1908 Then he alleges. with fraudulent intent. the
firm clandestinely sold contracts for 427,700 bales
for said January delivery. Mr.. Price alleges fur
Their that on December 20 the firm rendered TO him
an account but he declined to receive it, and de-
manded the contracts. winch they naVo TeIused "
deliver.
Further allegations that the defendants have
retained full commissions amounting 10 about
s42.7O on all transactions in which Mr.. Price was
engaged. and have fraudulently converted to their
s511,760 in cash and 1905 shares of stocks
deposited marginal securities
The defendants say Mr. Price told them he rep,
resented wealthy syndicate. and thereby induced
them TO effect large transactions They deny the
conversion allege that there was an agree
ment authorizing their acts and that said acts
were ratified by him. They further alleSe that
November S Mr. Price Informed the firm that
he was at the end Of his resources. and that other
firms through whom he had purchased and sold
large quantities of cotton Cor future delivery. Were
about 10 call upon him for margins.
The defendants declare that. inasmuch as the
throwing upon the market of such large amounts
of cotton would produce a break In prices and
create a panic, and the loss would fall on the
firm and would be far in excess of all plaintlfTs
margins, IL agreed that the firm should take
the plaintiffs outstanding accounts with other
brokers', and that these contracts taken over, as
well as the contracts held by the defendants,
should be iQuidated and handled by and in the sole
discretion Of the defendant company. The con-
tracts taken from other brokers by the de-
PENDANTS amounted to 81 10000 they say.
The defendants allege that they saved the
plaintiff about 100000 and he professed himself az
highly pleased with the result.