Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-04-26
LOSS BY FAILURE
NOW ESTIMATED
At OVER S5,0OO,OOO
Wholesale Charges of Forgery
Charged to Southern Firm
Vessels Said to Contain
Large Amounts Had None
Especial Dispatch 70. The JOurnaD

Special Dispatch 10. The Journal)
NEW YORK April 2s-Iuterest IN the
cotton situationss was divided today be-
tween rumors OF negotiations beween the
warning bulls and s6ears@a and the losses
sustained BY New York cotton brokerage
houses as a result of the failure OF
Knight. Yancey 4 Co. which are esu-
mated at sS6.ooe According TO dispateh-
IS from Huntsville. Ala, the New YORK
firms appeared a lis. of creditors OF the
bankrupt concern:
Bros. Co.. $4,000: both amply secured;
Dick Bros. & Co. $4,000; Miller l. Co.,
$500: Spring & Co. $4,000. all unseeur-
ed. s~
Liverpool has been hit much harder
than this city. The aggregate losses viii
be moi less than S5.ooo.oo0 and ii is likely
to be 10000
scHECKING Up HOLDINGS.
President Brennecke Of the New York
cotton exchanges. said today that he had
no ida vrhat fFSe, Local Issue would De.
Members o. tie exchsnge were. busy to-
day checking up their holdings and COM
nunicating with their agents all over the
country. trying TO learn IL they actually
had the cotton for which their bills OF
radinx called Some of he smaller Eng
lsxh houses are in a serious predicament
as they have made sales on the basis OF
supposed shipments
: 80 Gar As is known none. of the local
banks have been victimized but southern
harks are reported TO have advanced
slsrre sums on bills OF lading which bore
: fac smile TO the steamship agents.
These bulls attached TO drafts were sent
ia I.fvcrDool banks and in almost ali
instances we're honored- They we're filled
out before delivering staple 10 the car
tiers, bur. in many instances 1.-The cotton
wax never turned over 70 the steamship
company .~- .v.-.-t
IN other instances southern. shippers
ATTAINED money on the bills. of. lading
fom southern banks without waiting Tor
he cotton TO, be. checked up and certified
scrhvs thes representatives OF the transpor-
tztion lines When the cotton arrived in
Liverpool 4t would be found TO be short
q Few bales.
.fes LOSSES WERE SERIOUS.
~ On dinarfIy such discrepancy would be
adjusted in due course of time and the
frixSfng bales replaced This year, how
ever. the losses have been serious ana
charges are made that ships supposed TO
- taxing out from 5000 to 1000 bales or
cotton on which southern banks had ad-
.wsnced on the strength of the bills of lad
ing and the drafts attached thereto act
riallv carried not an ounce OF cotton III
Il also charged that the signatures OF
masters OF vessels and OF railroads were
forged TO these.
The southern disclosures placed in the
BACKGROUND TN ebitter warfare between
the cotton bears led by David H. Miller
wcFadden Bros and others on the one
side: and the bull clique in which James
Patten Eugene Scales. Frank b.
H&vue and William p. Brown are on the
other side but Wall street learned that
negotiations had been begun looking TO a
private settlement of May cotton con
tracts at a price close TO current quota
tons
Is THERE A CORNER?
If Patten and his associates have not
actually cornered May cotton they ar"
not far from ii. while the shorts are
securing the south for stray bales with
which 10 make deliveries and have i'm
ported from England during the present
month approximately $4,000 bales of Amer
lean cotton.
Estimates of the. bear shortages were
eo.nas bales. which is considered con-
sentative figure. while some brokers in
sist il amounts 10 mueit more.
IL James A. Patten. who has the cotton.
has said ne would be satisfied with a
REASONABLE profit but his sdea of
reasonable profit and that entertained by
tire bears differ materially. The federal
inquiry has not helped the bears.
Patten is now i'm Chicago. serene Ia.
the BELIEF that he has control Of more
cotton than any other person. and there
fore in q short crop year when the spin
8 ners OF this country and England are
acIamorfng for the commodity he Is master
OF the situation No one knows how many
bales Patten and his associates control.
but the lowest figure is 10000 bales. and
II may be much greater. His profit on
the transaction would he i'm the neighbOr-
hood Of 81 5000 on a basis of s. a bale.
May cotton irrvorth about 81 bale.