New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-24
LOSSES HERE DUE TO
COTTON FAILURE BIG
Owing to False Bills OF lading
Local Firms Stand to Lose
$500,
SHORTS TO GET NO MERCY
Patten Says He Knows Of No
Steps for a Settlement-Brown
Adds There Will Be
None.

! Unless bills Of lading for cotton ship
ments with drafts attached should prove
/ 10 be genuine and not forged the losses
! TO firms in this city due to the failure
/ for Sc. 10000 of knight. Yancey & Co.
will amount to about 100000, and not
! $4,000 as reported on Friday. This
/ fact in some measure overshadowed a
statement given out yesterday that there
were negotiations between the bull pool
interests attacked in the government in
vestigation Of last week and the shorts
/ for a private settlement of May con-
tracts close TO the current quotations.
If the reported negotiations should
prove to be true, it was said. 1t would
mean the practical elimination of the
pool and might halt the government pro-
ceedings
The bull interests said to be headed by
the men mentioned in the subpenas sent
out by the government-William P.
Brown, Frank B. Hayne. James A. Pat
ten and Z. C. Scales-were prompt to
deny the report. although it came from
a source regarded as trustworthy. The
wire to Chicago was kept busy by
friends Of Mr. Patten as soon as in
Quries were started. He sent message
by telegraph saying that if such nego-
tiations were under way il was news to
him. Mr.. Brown said:
There has been no settlement and
there will be none. We have bought
cotton on contract and will take it up.
Big Losses in This City.
These denials were spread throughout
the district. and brokers continued their
figuring on the Knight. Yancey & CO.
failure results in this city. The local
houses that are unsecured creditors of
the firm are Springs & Co. for S22SOOO;
Dick Brothers & CO. and Miller & Co.
for $4,000 each. Among the secured
creditors were Henry Hentz & Co, for
1872. 600. and Hubbard Brothers. for
$4,000
Members of the unsecured firms were
witnesses before the grand jury last
week. At the Offices Of Springs & Co IT
was said by one OF the firm. in explain
ing how it had happened to lose so heav-
fly, that it had purchased three thousand
bales Of cotton from the Southern spot
house for delivery on May contracts.
Knight. Yancey & Co. had written that
they had shipped the cotton, and In
closed a bill OF lading for it over the
Louisville & Nashville Railroad. with
the draft attached in the usual way.
The firm member continued:
I'VE honored the draft after the bill Of
49, ha
oficers Of the railroad company and pro-
rounced by them TO be apparently all
right The cotton. however. has not been
received II is now several weeks over
due"
No Proof Of Forgery Yet.
The railroad company, the member Of
Springs G. Co declared, had sent out a
tracer, and expected to be able TO report
on the matter in a few days. The firm
had no way Of knowing whether the bill
Of lading was a forgery until the rail-
road company finishes its investigation,
il was said. But the latter was inclined TO
be reticent, and it might be necessary TO
go TO the courts to have the matter
thrashed out If il should prove that the
hin Of lading was a forgery, II would be
a case similar to that reported from
England.
Springs & co. were obliged to go into
the market and purchase three thousand
bales to cover the contracts. From the
firm il was learned that other concerns
which had purchased cotton, from the
ba nkrupt company were in the same pre-
dicament, having received bills of lading
with drafts which were honored, but not
receiving the staple. Not one Of the
firms that had this experience has been
able 10 find out so far whether the bills
Of lading were forged. The losses. un-
less the cotton is forthcoming, viii
amount to at least 100000 to the local
firms.
George r. Brennecke the president OF
the New York Cotton Exchange. ad-
mitted Yesterday that his first estimate
Of the losses as 800. 000 made on the day
the failure occurred. was far too low, but
he said he had no definite idea what they
would be He said he did not think that
any local concern would be seriously
affected by its losses.
Liverpool April 23.-The creditors of
the Alabama cotton firm Of knight.
Yancey & co. are existing the aid Of
Liverpool banks i'm obtaining redress
from American banks because Of losses