The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-03-14
THE coE COMMISSION COMPANY
OWES ABOUT 100000 TO
ITS PATRONS.
WaIla WaIIa Traders Hit Hard
Hammond Will Try to straishten
Out the TangIe.

AUOul %AVV,VVV Is OuS pdlIOIS VI tuC
Coe Commission company which was
forced into the hands of a receiver last
that George Hammond, president of
the company and one of its principal
stockholders, has hopes Of regaining
the property and ultimately settling
every obligation. The Walla Walla
Office has been closed by Manager H.
B. Kershaw awaiting advices from the
receiver as to what disposition will
be made of the company's effects at
this point. 1t is said that a number of
Walla Walla traders have considerable
money tied up by reason Of the COM
pany's financial difficulties and they
are wondering if they are to receive
back any or part of their money.
It is said that several Walla Wal
lans are making an effort to secure
possession of the local office and open
it under private management, securing
quotations direct from Portland. The
Dayton office is being conducted under
this plan with considerable success.
Big Crash Came.
Reporting the Coe Commission COM
pany's failure the Minneapolis Tribune
says:
This company has within the year
last past, So the company states, paid
out to customers over $1,000,0O0, of
which about half has been from it's
own capital and surplus. 1t is known
that about year ago there was in the
banks of MINNEAPOLIS and st. Paul and
over a hundred of it's repositories
throughout the northwest as much as
$500, 900 subject to check at one time.
About the same time the company went
into the bond market and bought a
large quantity of state, municipal, rail-
road bonds. intending to establish
bond department and gradually with
bond department and gradually with
draw from the speculative business
These bonds have been turned into
cash and the great surplus in the banks
has melted away with a constantly ris-
ing market until every dollar that
could be raised has been paid out to
meet the company's obligations.
How It Was Worked.
The system upon which the Coe
Commission company has been oper-
ating has been to make it's general Of
flee a clearing house for all of it's ITO
says the Minneapolis Times.
In some of these orders were received
to buy in others to sell the identical
stock or commodity. This gave the
company margain on each trade and
one mans gains would set off with the
other customers loss. This method
of operation has been successful until
a combination of circumstances, in
which the Japanese war and other un-
certainties were the controlling fea-
lures, put all prices up, and the profits
of the "longs" have not been offset by
the losses Of the shorts" This forced
the company to carry a very great line
of "short" grain and stocks. Under
ordinary circumstances the margin OF
capital of the company was enough to
withstand the strain.
Then Came "Run."
To make matters worse for the Coe
people several of the big concerns at
the chamber of commerce sent out re-
peated damaging reports at various
times, and the trading public manifest
ed a degree Of uncertainty which was
reflected in the loss of business. But
for these rumors, the Coe Commission
company would probably have been
able to withstand the pressure. Many
of it's customers got scared. demanded
their money, and soon it became like
a run on a bank.